Sunstone Hotel Investors, Inc. (NYSE:SHO) Given Average 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%.

Sunstone Hotel Investors, Inc. (NYSE:SHO - Get Free Report) has been given a consensus recommendation of "Hold" by the seven research firms that are presently covering the stock, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell rating, three have assigned a hold rating and two have given a buy rating to the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $8.9286.

SHO has been the subject of a number of research analyst reports. Evercore ISI upped their target price 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. JPMorgan Chase & Co. initiated 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. Wells Fargo & Company cut their target price 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. Wall Street Zen downgraded Sunstone Hotel Investors from a "hold" rating to a "sell" rating in a research report on Friday, September 5th. Finally, Truist Financial cut their target price on Sunstone Hotel Investors from $11.00 to $10.00 and set a "hold" rating for the company in a research report on Wednesday, September 3rd.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Point72 Asia Singapore Pte. Ltd. purchased a new position in Sunstone Hotel Investors during the 4th quarter worth approximately $33,000. Hantz Financial Services Inc. grew its position in Sunstone Hotel Investors by 951.7% during the 2nd quarter. Hantz Financial Services Inc. now owns 3,008 shares of the real estate investment trust's stock worth $26,000 after purchasing an additional 2,722 shares in the last quarter. GF Fund Management CO. LTD. purchased a new position in Sunstone Hotel Investors during the 4th quarter worth approximately $42,000. Assetmark Inc. grew its position in Sunstone Hotel Investors by 210.4% during the 2nd quarter. Assetmark Inc. now owns 3,635 shares of the real estate investment trust's stock worth $32,000 after purchasing an additional 2,464 shares in the last quarter. Finally, GAMMA Investing LLC grew its position in Sunstone Hotel Investors by 47.7% during the 1st quarter. GAMMA Investing LLC now owns 4,831 shares of the real estate investment trust's stock worth $45,000 after purchasing an additional 1,560 shares in the last quarter. Institutional investors own 99.37% of the company's stock.

Sunstone Hotel Investors Stock Performance

Shares of SHO stock opened at $9.77 on Wednesday. Sunstone Hotel Investors has a 12-month low of $7.45 and a 12-month high of $12.41. The firm has a market capitalization of $1.86 billion, a price-to-earnings ratio of 488.74, a price-to-earnings-growth ratio of 3.54 and a beta of 1.29. The business has a 50 day simple moving average of $9.14 and a 200 day simple moving average of $9.00. The company has a debt-to-equity ratio of 0.51, a current ratio of 2.73 and a quick ratio of 2.73.

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 (EPS) for the quarter, topping analysts' consensus estimates 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 business 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 company posted $0.28 EPS. The business's revenue for the quarter was up 5.0% compared to the same quarter last year. On average, equities research analysts anticipate that Sunstone Hotel Investors will post 0.79 EPS for the current year.

Sunstone Hotel Investors Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Tuesday, September 30th will be issued a $0.09 dividend. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $0.36 annualized dividend and a dividend yield of 3.7%. Sunstone Hotel Investors's dividend payout ratio is currently 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.

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