Sunstone Hotel Investors, Inc. $SHO Shares Sold by UBS Group AG

Key Points

• UBS Group AG cut its stake in Sunstone Hotel Investors by 60% in the fourth quarter, selling 796,873 shares and ending with 531,457 shares valued at about $4.75 million.
• Sunstone reported better-than-expected first-quarter earnings, posting $0.27 per share versus the $0.22 estimate and revenue of $259.7 million, up 10.9% from a year ago.
• The company declared a quarterly dividend of $0.09 per share, which implies an annualized yield of 3.4%; however, its payout ratio is very high at 327.27%.

UBS Group AG reduced its holdings in Sunstone Hotel Investors, Inc. (NYSE:SHO - Free Report) by 60.0% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 531,457 shares of the real estate investment trust's stock after selling 796,873 shares during the quarter. UBS Group AG owned 0.28% of Sunstone Hotel Investors worth $4,751,000 at the end of the most recent quarter.

Other large investors have also recently added to or reduced their stakes in the company. Hantz Financial Services Inc. increased its position in shares of Sunstone Hotel Investors by 62.4% during the 3rd quarter. Hantz Financial Services Inc. now owns 4,884 shares of the real estate investment trust's stock valued at $46,000 after purchasing an additional 1,876 shares during the period. Mirae Asset Global Investments Co. Ltd. increased its position in shares of Sunstone Hotel Investors by 27.4% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,274 shares of the real estate investment trust's stock valued at $47,000 after purchasing an additional 1,135 shares during the period. Cerity Partners LLC acquired a new position in shares of Sunstone Hotel Investors during the 2nd quarter valued at $88,000. PNC Financial Services Group Inc. increased its position in shares of Sunstone Hotel Investors by 16.7% during the 3rd quarter. PNC Financial Services Group Inc. now owns 12,012 shares of the real estate investment trust's stock valued at $113,000 after purchasing an additional 1,720 shares during the period. Finally, United Services Automobile Association acquired a new position in shares of Sunstone Hotel Investors during the 1st quarter valued at $120,000. 99.37% of the stock is currently owned by institutional investors and hedge funds.

Sunstone Hotel Investors Price Performance

SHO stock opened at $10.69 on Friday. The company has a current ratio of 3.42, a quick ratio of 3.42 and a debt-to-equity ratio of 0.58. Sunstone Hotel Investors, Inc. has a one year low of $8.43 and a one year high of $10.72. The firm has a market capitalization of $1.99 billion, a PE ratio of 97.22, a P/E/G ratio of 2.47 and a beta of 0.96. The firm has a 50-day moving average of $9.58 and a two-hundred day moving average of $9.33.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last released its earnings results on Tuesday, May 5th. The real estate investment trust reported $0.27 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.05. The business had revenue of $259.71 million for the quarter, compared to the consensus estimate of $244.30 million. Sunstone Hotel Investors had a net margin of 3.84% and a return on equity of 2.27%. The firm's quarterly revenue was up 10.9% compared to the same quarter last year. During the same period last year, the firm posted $0.21 earnings per share. Sunstone Hotel Investors has set its FY 2026 guidance at 0.880-0.960 EPS. On average, analysts forecast that Sunstone Hotel Investors, Inc. will post 0.91 earnings per share for the current year.

Sunstone Hotel Investors Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th will be issued a $0.09 dividend. The ex-dividend date is Tuesday, June 30th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 3.4%. Sunstone Hotel Investors's dividend payout ratio is presently 327.27%.

Analyst Ratings Changes

SHO has been the topic of several research analyst reports. Wells Fargo & Company lowered their price target on Sunstone Hotel Investors from $11.00 to $10.00 and set an "overweight" rating on the stock in a research report on Tuesday, March 24th. Wall Street Zen upgraded Sunstone Hotel Investors from a "sell" rating to a "hold" rating in a research report on Saturday, February 28th. LADENBURG THALM/SH SH initiated coverage on Sunstone Hotel Investors in a research report on Thursday, March 26th. They set a "hold" rating and a $10.00 price target on the stock. Citigroup lifted their price target on Sunstone Hotel Investors from $9.50 to $10.00 and gave the company a "neutral" rating in a research report on Wednesday, May 6th. Finally, Truist Financial lifted their price target on Sunstone Hotel Investors from $10.00 to $11.00 and gave the company a "hold" rating in a research report on Thursday, March 26th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $10.00.

About Sunstone Hotel Investors

Sunstone Hotel Investors, Inc NYSE: SHO is a publicly traded real estate investment trust (REIT) focused on acquiring, owning and asset‐managing upper‐upscale extended‐stay and premium‐branded hotel properties in the United States. The company's business model centers on generating stable, long‐term cash flows through franchise agreements and third‐party management contracts with established hotel operators.

As of the most recent reporting period, Sunstone's portfolio includes approximately 97 hotels and nearly 25,000 guest rooms across 19 states, with concentrations in major metropolitan and select high‐growth secondary markets.

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