Sunstone Hotel Investors, Inc. (NYSE:SHO) Given Consensus Rating of "Hold" by Analysts

Key Points

• Sunstone Hotel Investors, Inc. has received a consensus recommendation of "Hold" from analysts, with an average target price of $8.93 among covered brokers.
• The company reported a 0.28 earnings per share (EPS) for the last quarter, exceeding analyst expectations, with revenue growing 5.0% year-over-year.
• Sunstone declared a quarterly dividend of $0.09, reflecting a high dividend payout ratio of 1,800% and a yield of 3.7%.

Shares of Sunstone Hotel Investors, Inc. (NYSE:SHO - Get Free Report) have received an average rating of "Hold" from the seven analysts that are presently covering the stock, Marketbeat reports. Two analysts have rated the stock with a sell rating, three have issued a hold rating and two have assigned a buy rating to the company. The average 12-month price objective among analysts that have issued ratings on the stock in the last year is $8.9286.

Several brokerages have recently issued reports on SHO. Wall Street Zen cut Sunstone Hotel Investors from a "hold" rating to a "sell" rating in a research report on Friday, September 5th. Truist Financial decreased their target price on Sunstone Hotel Investors from $11.00 to $10.00 and set a "hold" rating on the stock in a report on Wednesday, September 3rd. JPMorgan Chase & Co. started coverage on Sunstone Hotel Investors in a research report on Monday, June 23rd. They issued an "underweight" rating and a $8.00 target price for the company. Evercore ISI boosted their price target on Sunstone Hotel Investors from $10.00 to $11.00 and gave the stock an "outperform" rating in a research report on Monday, July 28th. Finally, Wells Fargo & Company cut their price objective on Sunstone Hotel Investors from $9.00 to $8.50 and set an "equal weight" rating for the company in a research report on Tuesday, July 1st.

Institutional Investors Weigh In On Sunstone Hotel Investors

Institutional investors have recently made changes to their positions in the stock. California State Teachers Retirement System grew its position in shares of Sunstone Hotel Investors by 0.7% in the second quarter. California State Teachers Retirement System now owns 178,604 shares of the real estate investment trust's stock valued at $1,550,000 after purchasing an additional 1,170 shares during the last quarter. AQR Capital Management LLC increased its holdings in Sunstone Hotel Investors by 1.6% during the 1st quarter. AQR Capital Management LLC now owns 83,864 shares of the real estate investment trust's stock worth $789,000 after purchasing an additional 1,307 shares in the last quarter. GAMMA Investing LLC boosted its stake in shares of Sunstone Hotel Investors by 47.7% in the 1st quarter. GAMMA Investing LLC now owns 4,831 shares of the real estate investment trust's stock worth $45,000 after buying an additional 1,560 shares during the last quarter. Ethic Inc. lifted its stake in Sunstone Hotel Investors by 12.7% in the second quarter. Ethic Inc. now owns 13,936 shares of the real estate investment trust's stock valued at $124,000 after purchasing an additional 1,573 shares during the last quarter. Finally, Aberdeen Group plc lifted its stake in Sunstone Hotel Investors by 2.3% in the first quarter. Aberdeen Group plc now owns 73,502 shares of the real estate investment trust's stock valued at $692,000 after purchasing an additional 1,669 shares during the last quarter. 99.37% of the stock is owned by institutional investors and hedge funds.

Sunstone Hotel Investors Price Performance

Shares of NYSE:SHO traded down $0.15 on Wednesday, hitting $9.77. The company had a trading volume of 6,335,577 shares, compared to its average volume of 2,188,598. The company has a market cap of $1.86 billion, a PE ratio of 488.74, a PEG ratio of 3.63 and a beta of 1.29. The business has a 50 day moving average of $9.18 and a 200 day moving average of $8.99. Sunstone Hotel Investors has a 52-week low of $7.45 and a 52-week high of $12.41. The company has a current ratio of 2.73, a quick ratio of 2.73 and a debt-to-equity ratio of 0.51.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The real estate investment trust reported $0.28 EPS for the quarter, topping the consensus estimate of $0.26 by $0.02. Sunstone Hotel Investors had a return on equity of 1.12% and a net margin of 2.15%.The company had revenue of $259.77 million during the quarter, compared to analyst estimates of $256.68 million. During the same period in the prior year, the firm posted $0.28 earnings per share. The firm's revenue was up 5.0% on a year-over-year basis. As a group, equities analysts anticipate that Sunstone Hotel Investors will post 0.79 earnings per share for the current fiscal year.

Sunstone Hotel Investors Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Tuesday, September 30th will be given a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a dividend yield of 3.7%. The ex-dividend date is Tuesday, September 30th. Sunstone Hotel Investors's dividend payout ratio (DPR) is 1,800.00%.

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.