Sunstone Hotel Investors (NYSE:SHO) Sets New 1-Year High - Time to Buy?

Key Points

• Sunstone Hotel Investors shares reached a new 52-week high of $12.83, above both its 50-day and 200-day moving averages. However, analysts’ average rating remains “Hold,” with an average price target of $11.43.
• The REIT exceeded quarterly expectations, reporting $0.14 EPS versus an $0.08 consensus and revenue of $277.11 million. Management provided fiscal 2026 EPS guidance of $0.93–$0.98.
• Sunstone paid a quarterly dividend of $0.09 per share, equivalent to a 2.8% yield, but its 163.64% payout ratio raises questions about dividend sustainability. Institutional investors own 99.37% of the stock.

Sunstone Hotel Investors, Inc. (NYSE:SHO - Get Free Report) shares reached a new 52-week high on Wednesday. The company traded as high as $12.83 and last traded at $12.6950, with a volume of 513,101 shares. The stock had previously closed at $12.77.

Analyst Ratings Changes

Several research analysts have recently weighed in on the company. Zacks Research cut Sunstone Hotel Investors from a "strong-buy" rating to a "hold" rating in a report on Thursday, July 23rd. JPMorgan Chase & Co. raised their target price on Sunstone Hotel Investors from $10.00 to $11.00 and gave the stock an "underweight" rating in a research note on Wednesday, October 21st. Weiss Ratings raised shares of Sunstone Hotel Investors from a "hold (c)" rating to a "buy (b-)" rating in a research report on Tuesday, August 11th. Wall Street Zen lowered shares of Sunstone Hotel Investors from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Finally, Evercore set a $13.00 price objective on shares of Sunstone Hotel Investors in a research report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $11.43.

Sunstone Hotel Investors Stock Down 0.0%

The business has a 50-day moving average of $11.39 and a 200-day moving average of $10.50. The stock has a market capitalization of $2.37 billion, a price-to-earnings ratio of 57.98, a P/E/G ratio of 2.94 and a beta of 1.00. The company has a debt-to-equity ratio of 0.59, a quick ratio of 3.84 and a current ratio of 3.84.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The real estate investment trust reported $0.14 earnings per share for the quarter, beating analysts' consensus estimates of $0.08 by $0.06. Sunstone Hotel Investors had a net margin of 5.30% and a return on equity of 3.21%. The firm had revenue of $277.11 million during the quarter, compared to analysts' expectations of $266.67 million. Sunstone Hotel Investors has set its FY 2026 guidance at 0.930-0.980 EPS. On average, sell-side analysts expect that Sunstone Hotel Investors, Inc. will post 0.99 EPS for the current year.

Sunstone Hotel Investors Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were issued a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend was Wednesday, September 30th. Sunstone Hotel Investors's dividend payout ratio is 163.64%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in SHO. North Star Investment Management Corp. acquired a new stake in shares of Sunstone Hotel Investors during the 1st quarter worth about $27,000. Fortitude Family Office LLC acquired a new stake in Sunstone Hotel Investors during the third quarter worth approximately $47,000. Sterling Capital Management LLC lifted its position in shares of Sunstone Hotel Investors by 187.2% during the 3rd quarter. Sterling Capital Management LLC now owns 5,115 shares of the real estate investment trust's stock worth $57,000 after buying an additional 3,334 shares during the last quarter. Sequoia Financial Advisors LLC purchased a new stake in shares of Sunstone Hotel Investors during the 1st quarter worth approximately $91,000. Finally, Longboard Asset Management LP purchased a new stake in shares of Sunstone Hotel Investors during the 2nd quarter worth approximately $124,000. 99.37% of the stock is owned by institutional investors and hedge funds.

Sunstone Hotel Investors Company Profile

Sunstone Hotel Investors, Inc NYSE: SHO is a real estate investment trust that owns and manages hotels in the United States. The company focuses primarily on upscale and upper-upscale properties located in major business, convention, and leisure destinations.

Sunstone's portfolio includes full-service hotels operated under well-known hospitality brands as well as independent properties. Its hotels provide accommodations, restaurants and bars, meeting and event facilities, fitness amenities, and other services designed for business and leisure travelers.

The company has historically pursued ownership of institutional-quality lodging assets in markets with strong travel demand, including coastal gateway cities and popular resort and urban destinations.

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