Sunstone Hotel Investors, Inc. (NYSE:SHO) Announces $0.09 Quarterly Dividend

Key Points

• Sunstone Hotel Investors, Inc. has declared a quarterly dividend of $0.09 per share, with a significant yield of 4.1%, scheduled for payment on October 15th to eligible investors.
• The company currently has a payout ratio of 189.5%, indicating it is relying on its balance sheet to cover the dividend, but projected earnings for next year suggest a future payout ratio of 37.1%.
• Recent price targets for Sunstone's stock have been adjusted by several analysts, with Jefferies Financial Group lowering its target from $12.00 to $8.00, reflecting a cautious outlook on the company's performance.

Sunstone Hotel Investors, Inc. (NYSE:SHO - Get Free Report) declared a quarterly dividend on Thursday, August 7th, Wall Street Journal reports. Investors of record on Tuesday, September 30th will be given a dividend of 0.09 per share by the real estate investment trust on Wednesday, October 15th. This represents a c) dividend on an annualized basis and a yield of 4.1%. The ex-dividend date is Tuesday, September 30th.

Sunstone Hotel Investors has a payout ratio of 189.5% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Sunstone Hotel Investors to earn $0.97 per share next year, which means the company should continue to be able to cover its $0.36 annual dividend with an expected future payout ratio of 37.1%.

Sunstone Hotel Investors Stock Performance

SHO stock traded up $0.03 during trading on Thursday, hitting $8.79. The company had a trading volume of 2,146,480 shares, compared to its average volume of 2,381,333. The company has a quick ratio of 2.89, a current ratio of 2.89 and a debt-to-equity ratio of 0.47. The firm has a 50-day moving average price of $8.86 and a 200-day moving average price of $9.39. The firm has a market cap of $1.75 billion, a PE ratio of 87.85, a price-to-earnings-growth ratio of 1.94 and a beta of 1.30. Sunstone Hotel Investors has a 1-year low of $7.45 and a 1-year high of $12.41.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The real estate investment trust reported $0.28 earnings per share for the quarter, topping analysts' consensus estimates of $0.26 by $0.02. The business had revenue of $259.77 million during the quarter, compared to analysts' expectations of $256.68 million. Sunstone Hotel Investors had a net margin of 3.85% and a return on equity of 1.93%. The company's revenue was up 5.0% on a year-over-year basis. During the same period last year, the company posted $0.28 EPS. On average, analysts expect that Sunstone Hotel Investors will post 0.79 earnings per share for the current year.

Analysts Set New Price Targets

Several brokerages have commented on SHO. Jefferies Financial Group dropped their price target on Sunstone Hotel Investors from $12.00 to $8.00 and set a "hold" rating for the company in a research note on Wednesday, April 9th. Morgan Stanley decreased their price objective on shares of Sunstone Hotel Investors from $9.00 to $7.00 and set an "underweight" rating for the company in a research note on Tuesday, April 22nd. Wells Fargo & Company dropped their target price on Sunstone Hotel Investors from $9.00 to $8.50 and set an "equal weight" rating on the stock in a research report on Tuesday, July 1st. Evercore ISI increased their price target on Sunstone Hotel Investors from $10.00 to $11.00 and gave the company an "outperform" rating in a report on Monday, July 28th. Finally, Bank of America raised shares of Sunstone Hotel Investors from an "underperform" rating to a "buy" rating and set a $10.00 price objective for the company in a research report on Wednesday, April 30th. Two research analysts have rated the stock with a sell rating, three have given a hold rating and two have issued a buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $9.07.

Sunstone Hotel Investors Company 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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