Vanguard Group Inc. Reduces Stock Position in Sunstone Hotel Investors, Inc. $SHO

Key Points

• Vanguard trimmed its stake in Sunstone Hotel Investors by 2.0% in the fourth quarter, but it still held 29.29 million shares valued at about $261.9 million, or roughly 15.4% of the company.
• Analysts remain cautious on SHO overall, with a consensus rating of “Hold” and an average price target of $10.00. Recent commentary included multiple hold/neutral ratings, though two analysts still rate the stock a Buy.
• Sunstone reported better-than-expected results for the latest quarter, earning $0.27 per share on revenue of $259.7 million, and it also raised its full-year guidance range for FY2026. The company announced a quarterly dividend of $0.09 per share, equal to a 3.4% annualized yield.

Vanguard Group Inc. decreased its stake in Sunstone Hotel Investors, Inc. (NYSE:SHO - Free Report) by 2.0% during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 29,290,649 shares of the real estate investment trust's stock after selling 607,662 shares during the quarter. Vanguard Group Inc. owned approximately 15.42% of Sunstone Hotel Investors worth $261,858,000 as of its most recent SEC filing.

Other hedge funds have also recently modified their holdings of the company. Hantz Financial Services Inc. boosted its stake in shares of Sunstone Hotel Investors by 62.4% in the third quarter. Hantz Financial Services Inc. now owns 4,884 shares of the real estate investment trust's stock worth $46,000 after buying an additional 1,876 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its stake in shares of Sunstone Hotel Investors by 27.4% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,274 shares of the real estate investment trust's stock worth $47,000 after buying an additional 1,135 shares during the last quarter. Cerity Partners LLC purchased a new stake in shares of Sunstone Hotel Investors in the second quarter worth about $88,000. CWM LLC boosted its stake in shares of Sunstone Hotel Investors by 21.7% in the third quarter. CWM LLC now owns 9,773 shares of the real estate investment trust's stock worth $92,000 after buying an additional 1,744 shares during the last quarter. Finally, PNC Financial Services Group Inc. boosted its stake in shares of Sunstone Hotel Investors by 16.7% in the third quarter. PNC Financial Services Group Inc. now owns 12,012 shares of the real estate investment trust's stock worth $113,000 after buying an additional 1,720 shares during the last quarter. Hedge funds and other institutional investors own 99.37% of the company's stock.

Analysts Set New Price Targets

A number of analysts have recently commented on SHO shares. Robert W. Baird restated a "neutral" rating and issued a $10.00 target price on shares of Sunstone Hotel Investors in a research note on Monday, January 12th. Citigroup upped their price target on Sunstone Hotel Investors from $9.50 to $10.00 and gave the stock a "neutral" rating in a report on Wednesday. LADENBURG THALM/SH SH initiated coverage on Sunstone Hotel Investors in a report on Thursday, March 26th. They issued a "hold" rating and a $10.00 price target for the company. Zacks Research raised Sunstone Hotel Investors from a "strong sell" rating to a "hold" rating in a report on Friday, April 17th. Finally, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Sunstone Hotel Investors in a report on Wednesday, January 21st. Two equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Sunstone Hotel Investors presently has a consensus rating of "Hold" and a consensus target price of $10.00.

Sunstone Hotel Investors Price Performance

Shares of Sunstone Hotel Investors stock opened at $10.48 on Friday. The stock has a market capitalization of $1.95 billion, a P/E ratio of 95.25, a PEG ratio of 2.92 and a beta of 0.96. The business has a 50 day simple moving average of $9.40 and a two-hundred day simple moving average of $9.25. Sunstone Hotel Investors, Inc. has a 12 month low of $8.29 and a 12 month high of $10.58. The company has a debt-to-equity ratio of 0.58, a current ratio of 3.42 and a quick ratio of 2.94.

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, beating 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 return on equity of 2.27% and a net margin of 3.84%.The business's quarterly revenue was up 10.9% compared to the same quarter last year. During the same quarter last year, the business posted $0.21 earnings per share. Sunstone Hotel Investors has set its FY 2026 guidance at 0.880-0.960 EPS. As a group, analysts predict that Sunstone Hotel Investors, Inc. will post 0.9 EPS for the current fiscal year.

Sunstone Hotel Investors Announces Dividend

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

Sunstone Hotel Investors Profile

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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