William Blair Investment Management LLC Cuts Stake in Sunstone Hotel Investors, Inc. $SHO

Key Points

• William Blair Investment Management LLC has reduced its stake in Sunstone Hotel Investors, Inc. by 7.7% in the second quarter, now holding over 2 million shares valued at approximately $18 million.
• Sunstone Hotel Investors recently announced a quarterly dividend of $0.09 per share, reflecting a 3.9% yield, with a significant payout ratio of 1,800%.
• The company reported a net margin of 2.15% and projected earnings of 0.79 EPS for the current year, with analysts giving it an average rating of "Hold".

William Blair Investment Management LLC reduced its position in shares of Sunstone Hotel Investors, Inc. (NYSE:SHO - Free Report) by 7.7% in the second quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 2,106,816 shares of the real estate investment trust's stock after selling 175,435 shares during the quarter. William Blair Investment Management LLC owned 1.06% of Sunstone Hotel Investors worth $18,287,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. GAMMA Investing LLC grew its holdings in shares of Sunstone Hotel Investors by 47.7% during the first quarter. GAMMA Investing LLC now owns 4,831 shares of the real estate investment trust's stock valued at $45,000 after buying an additional 1,560 shares during the last quarter. Smartleaf Asset Management LLC raised its holdings in Sunstone Hotel Investors by 62.7% in the 1st quarter. Smartleaf Asset Management LLC now owns 4,882 shares of the real estate investment trust's stock worth $46,000 after acquiring an additional 1,881 shares during the last quarter. Blue Trust Inc. lifted its position in Sunstone Hotel Investors by 46.8% in the 2nd quarter. Blue Trust Inc. now owns 6,544 shares of the real estate investment trust's stock valued at $57,000 after acquiring an additional 2,087 shares in the last quarter. CWM LLC boosted its stake in Sunstone Hotel Investors by 579.8% during the 2nd quarter. CWM LLC now owns 8,029 shares of the real estate investment trust's stock valued at $70,000 after purchasing an additional 6,848 shares during the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S purchased a new stake in Sunstone Hotel Investors during the 1st quarter valued at $82,000. Institutional investors own 99.37% of the company's stock.

Sunstone Hotel Investors Stock Performance

NYSE:SHO opened at $9.20 on Monday. The stock has a 50-day simple moving average of $9.35 and a two-hundred day simple moving average of $8.91. The firm has a market capitalization of $1.75 billion, a PE ratio of 459.98, a P/E/G ratio of 3.42 and a beta of 1.29. Sunstone Hotel Investors, Inc. has a 52-week low of $7.45 and a 52-week high of $12.41. The company has a debt-to-equity ratio of 0.51, a quick ratio of 2.73 and a current ratio of 2.73.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last released its earnings results on Wednesday, August 6th. The real estate investment trust reported $0.28 EPS for the quarter, topping analysts' consensus estimates of $0.26 by $0.02. The company had revenue of $259.77 million for the quarter, compared to analysts' expectations of $256.68 million. Sunstone Hotel Investors had a net margin of 2.15% and a return on equity of 1.12%. The firm's revenue was up 5.0% compared to the same quarter last year. During the same quarter last year, the business earned $0.28 EPS. Analysts forecast that Sunstone Hotel Investors, Inc. will post 0.79 EPS for the current year.

Sunstone Hotel Investors Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, October 15th. Investors of record on Tuesday, September 30th were paid a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a yield of 3.9%. The ex-dividend date of this dividend was Tuesday, September 30th. Sunstone Hotel Investors's dividend payout ratio (DPR) is 1,800.00%.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on SHO shares. Weiss Ratings restated a "hold (c-)" rating on shares of Sunstone Hotel Investors in a research note on Wednesday, October 8th. Wells Fargo & Company raised Sunstone Hotel Investors to a "hold" rating in a research report on Friday, October 3rd. JPMorgan Chase & Co. initiated coverage on shares of Sunstone Hotel Investors in a research note on Monday, June 23rd. They set an "underweight" rating and a $8.00 target price on the stock. Wall Street Zen downgraded shares of Sunstone Hotel Investors from a "hold" rating to a "sell" rating in a report on Friday, September 5th. Finally, Truist Financial decreased their price objective on shares of Sunstone Hotel Investors from $11.00 to $10.00 and set a "hold" rating for the company in a report on Wednesday, September 3rd. Two research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Sunstone Hotel Investors presently has an average rating of "Hold" and an average price target of $8.93.

Sunstone Hotel Investors Profile

Sunstone Hotel Investors, Inc is a lodging real estate investment trust ("REIT") that as of the date of this release owns 14 hotels comprised of 6,675 rooms, the majority of which are operated under nationally recognized brands. Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate.

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