Sunstone Hotel Investors (NYSE:SHO) Sets New 52-Week High on Analyst Upgrade

Key Points

• Sunstone Hotel Investors reached a new 52-week high, trading as high as $12.78 after JPMorgan raised its price target from $10 to $11, despite maintaining an underweight rating.
• Analyst sentiment remains mixed: the stock has an average “Hold” rating and a consensus price target of $11.17, below its recent trading level.
• The REIT reported quarterly EPS of $0.14, exceeding the $0.08 estimate, and revenue of $277.11 million. It also paid a $0.09 quarterly dividend, equivalent to a 2.9% annualized yield.

Sunstone Hotel Investors, Inc. (NYSE:SHO - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Thursday after JPMorgan Chase & Co. raised their price target on the stock from $10.00 to $11.00. JPMorgan Chase & Co. currently has an underweight rating on the stock. Sunstone Hotel Investors traded as high as $12.78 and last traded at $12.6110, with a volume of 5,885,614 shares. The stock had previously closed at $12.40.

A number of other brokerages have also recently weighed in on SHO. Zacks Research cut Sunstone Hotel Investors from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 23rd. Weiss Ratings upgraded Sunstone Hotel Investors from a "hold (c)" rating to a "buy (b-)" rating in a research note on Tuesday, August 11th. Wall Street Zen downgraded shares of Sunstone Hotel Investors from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Truist Financial boosted their target price on shares of Sunstone Hotel Investors from $11.00 to $13.00 and gave the stock a "hold" rating in a report on Thursday, September 10th. Finally, Wells Fargo & Company raised shares of Sunstone Hotel Investors to a "strong-buy" rating in a research report on Thursday, July 23rd. One 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 issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $11.17.

Hedge Funds Weigh In On Sunstone Hotel Investors

Several institutional investors and hedge funds have recently bought and sold shares of the company. North Star Investment Management Corp. purchased a new stake in shares of Sunstone Hotel Investors during the 1st quarter valued at $27,000. Fortitude Family Office LLC acquired a new stake in shares of Sunstone Hotel Investors in the 3rd quarter worth $47,000. Sequoia Financial Advisors LLC acquired a new stake in shares of Sunstone Hotel Investors in the 1st quarter worth $91,000. Longboard Asset Management LP acquired a new stake in shares of Sunstone Hotel Investors in the 2nd quarter worth $124,000. Finally, Farther Finance Advisors LLC grew its stake in Sunstone Hotel Investors by 4,189.4% during the 3rd quarter. Farther Finance Advisors LLC now owns 10,938 shares of the real estate investment trust's stock worth $123,000 after buying an additional 10,683 shares during the last quarter. 99.37% of the stock is owned by hedge funds and other institutional investors.

Sunstone Hotel Investors Trading Up 1.7%

The company has a 50 day moving average of $11.26 and a two-hundred day moving average of $11.00. The company has a debt-to-equity ratio of 0.59, a quick ratio of 3.84 and a current ratio of 3.84. The stock has a market capitalization of $2.34 billion, a PE ratio of 57.33, a P/E/G ratio of 2.93 and a beta of 1.00.

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 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.08 by $0.06. Sunstone Hotel Investors had a return on equity of 3.21% and a net margin of 5.30%. The company had revenue of $277.11 million for the quarter, compared to analyst estimates of $266.67 million. Sunstone Hotel Investors has set its FY 2026 guidance at 0.930-0.980 EPS. Sell-side analysts predict that Sunstone Hotel Investors, Inc. will post 0.97 EPS for the current year.

Sunstone Hotel Investors Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were issued a dividend of $0.09 per share. The ex-dividend date was Wednesday, September 30th. This represents a $0.36 annualized dividend and a dividend yield of 2.9%. Sunstone Hotel Investors's dividend payout ratio is 163.64%.

About Sunstone Hotel Investors

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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