Sunstone Hotel Investors (NYSE:SHO) Sees Unusually-High Trading Volume - Here's Why

Key Points

• Sunstone Hotel Investors’ trading volume was unusually high, with about 2.18 million shares changing hands; the stock was nearly flat at $11.835.
• Analyst sentiment is mixed but averages a “Hold” rating, with an average price target of $11.00. Recent ratings ranged from Strong Buy to Sell.
• The REIT exceeded quarterly earnings and revenue expectations, reporting $0.14 EPS versus an $0.08 estimate, while paying a quarterly dividend of $0.09 for a 3.0% annualized yield.

Sunstone Hotel Investors, Inc. (NYSE:SHO - Get Free Report) shares saw an uptick in trading volume on Monday. Approximately 2,180,416 shares traded hands during mid-day trading, a decline of 1% from the previous session's volume of 2,205,588 shares. The stock last traded at $11.8350 and had previously closed at $11.83.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on SHO shares. Weiss Ratings raised Sunstone Hotel Investors from a "hold (c)" rating to a "buy (b-)" rating in a report on Tuesday, August 11th. JPMorgan Chase & Co. increased their price objective on Sunstone Hotel Investors from $9.00 to $10.00 and gave the company an "underweight" rating in a research report on Tuesday, July 21st. Zacks Research lowered Sunstone Hotel Investors from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 23rd. Wells Fargo & Company upgraded Sunstone Hotel Investors to a "strong-buy" rating in a report on Thursday, July 23rd. Finally, Wall Street Zen cut Sunstone Hotel Investors from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Sunstone Hotel Investors has an average rating of "Hold" and an average price target of $11.00.

Sunstone Hotel Investors Trading Down 0.2%

The company has a current ratio of 3.84, a quick ratio of 3.84 and a debt-to-equity ratio of 0.59. The stock has a market cap of $2.20 billion, a price-to-earnings ratio of 53.67, a P/E/G ratio of 2.80 and a beta of 1.00. The company has a fifty day simple moving average of $11.16 and a 200-day simple moving average of $10.93.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last announced its earnings results on Thursday, August 6th. The real estate investment trust reported $0.14 EPS for the quarter, topping the consensus estimate of $0.08 by $0.06. The company had revenue of $277.11 million during the quarter, compared to analysts' expectations of $266.67 million. Sunstone Hotel Investors had a net margin of 5.30% and a return on equity of 3.21%. Sunstone Hotel Investors has set its FY 2026 guidance at 0.930-0.980 EPS. On average, research analysts forecast that Sunstone Hotel Investors, Inc. will post 0.97 earnings per share for the current fiscal year.

Sunstone Hotel Investors Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were given a $0.09 dividend. This represents a $0.36 annualized dividend and a dividend yield of 3.0%. The ex-dividend date was Wednesday, September 30th. Sunstone Hotel Investors's dividend payout ratio is 163.64%.

Hedge Funds Weigh In On Sunstone Hotel Investors

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada raised its position in Sunstone Hotel Investors by 1.2% during the first quarter. Royal Bank of Canada now owns 103,294 shares of the real estate investment trust's stock valued at $931,000 after buying an additional 1,204 shares during the period. North Star Investment Management Corp. acquired a new position in shares of Sunstone Hotel Investors in the 1st quarter valued at about $27,000. Fortitude Family Office LLC purchased a new stake in shares of Sunstone Hotel Investors in the third quarter worth approximately $47,000. Janney Montgomery Scott LLC lifted its position in shares of Sunstone Hotel Investors by 17.2% in the first quarter. Janney Montgomery Scott LLC now owns 29,497 shares of the real estate investment trust's stock worth $266,000 after purchasing an additional 4,325 shares in the last quarter. Finally, Resona Asset Management Co. Ltd. lifted its position in shares of Sunstone Hotel Investors by 6.6% in the first quarter. Resona Asset Management Co. Ltd. now owns 84,337 shares of the real estate investment trust's stock worth $758,000 after purchasing an additional 5,238 shares in the last quarter. Institutional investors and hedge funds own 99.37% of the company's stock.

About Sunstone Hotel Investors

Sunstone Hotel Investors, Inc is a real estate investment trust (REIT) that owns, acquires, renovates and manages hotels in the United States. The company focuses primarily on upscale and upper-upscale lodging properties located in major urban, coastal and resort destinations.

Its portfolio includes independent and branded hotels serving business and leisure travelers. Properties may operate under well-known hospitality brands or as independent hotels, and typically offer guest rooms, meeting and event facilities, restaurants, bars, spas and other hospitality services.

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