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

Key Points

• Sunstone Hotel Investors (NYSE: SHO) has a consensus analyst rating of “Hold” from nine covering firms, with the average 1-year price target around $10.29.
• The company reported better-than-expected Q1 earnings, posting EPS of $0.27 versus estimates of $0.22, while revenue rose 10.9% year over year to $259.71 million.
• Sunstone announced a quarterly dividend of $0.09 per share, equal to an annualized yield of about 3.0%, payable July 15 to shareholders of record on June 30.

Sunstone Hotel Investors, Inc. (NYSE:SHO - Get Free Report) has received a consensus recommendation of "Hold" from the nine ratings firms that are currently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating, two have issued a buy rating and one has issued a strong buy rating on the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $10.2857.

Several brokerages have weighed in on SHO. Wells Fargo & Company boosted their price objective on Sunstone Hotel Investors from $10.00 to $12.00 and gave the company an "overweight" rating in a research report on Monday, June 1st. LADENBURG THALM/SH SH began coverage on Sunstone Hotel Investors in a research report on Thursday, March 26th. They issued a "hold" rating and a $10.00 price objective for the company. Zacks Research upgraded Sunstone Hotel Investors from a "hold" rating to a "strong-buy" rating in a research report on Monday, May 18th. Wall Street Zen upgraded Sunstone Hotel Investors from a "sell" rating to a "hold" rating in a research report on Saturday, February 28th. Finally, Truist Financial boosted their price objective on Sunstone Hotel Investors from $10.00 to $11.00 and gave the company a "hold" rating in a research report on Thursday, March 26th.

Sunstone Hotel Investors Stock Performance

Shares of SHO stock opened at $11.90 on Friday. The company has a debt-to-equity ratio of 0.58, a quick ratio of 3.42 and a current ratio of 3.42. Sunstone Hotel Investors has a fifty-two week low of $8.48 and a fifty-two week high of $12.03. The stock has a 50 day moving average price of $10.48 and a two-hundred day moving average price of $9.62. The company has a market capitalization of $2.22 billion, a P/E ratio of 108.15, a PEG ratio of 2.63 and a beta of 0.98.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The real estate investment trust reported $0.27 earnings per share for the quarter, beating the consensus estimate of $0.22 by $0.05. Sunstone Hotel Investors had a return on equity of 2.27% and a net margin of 3.84%.The firm had revenue of $259.71 million during the quarter, compared to the consensus estimate of $244.30 million. During the same quarter in the previous year, the company posted $0.21 earnings per share. The business's revenue was up 10.9% on a year-over-year basis. Sunstone Hotel Investors has set its FY 2026 guidance at 0.880-0.960 EPS. Analysts expect that Sunstone Hotel Investors will post 0.91 earnings per share for the current year.

Sunstone Hotel Investors Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th will be given a $0.09 dividend. The ex-dividend date is Tuesday, June 30th. This represents a $0.36 annualized dividend and a yield of 3.0%. Sunstone Hotel Investors's payout ratio is presently 327.27%.

Hedge Funds Weigh In On Sunstone Hotel Investors

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Mirae Asset Global Investments Co. Ltd. raised its holdings in shares of Sunstone Hotel Investors by 27.4% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,274 shares of the real estate investment trust's stock valued at $47,000 after acquiring an additional 1,135 shares in the last quarter. California State Teachers Retirement System raised its holdings in shares of Sunstone Hotel Investors by 0.7% during 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 acquiring an additional 1,170 shares in the last quarter. Royal Bank of Canada raised its holdings in shares of Sunstone Hotel Investors by 1.2% during the first quarter. Royal Bank of Canada now owns 103,294 shares of the real estate investment trust's stock valued at $931,000 after acquiring an additional 1,204 shares in the last quarter. AQR Capital Management LLC raised its holdings in shares of Sunstone Hotel Investors by 1.6% during the first quarter. AQR Capital Management LLC now owns 83,864 shares of the real estate investment trust's stock valued at $789,000 after acquiring an additional 1,307 shares in the last quarter. Finally, PNC Financial Services Group Inc. raised its holdings in shares of Sunstone Hotel Investors by 16.7% during the third quarter. PNC Financial Services Group Inc. now owns 12,012 shares of the real estate investment trust's stock valued at $113,000 after acquiring an additional 1,720 shares in the last quarter. Institutional investors own 99.37% of the company's stock.

Sunstone Hotel Investors Company Profile

Sunstone Hotel Investors, Inc NYSE: SHO is a publicly traded real estate investment trust (REIT) focused on acquiring, owning and asset‐managing upper‐upscale extended‐stay and premium‐branded hotel properties in the United States. The company's business model centers on generating stable, long‐term cash flows through franchise agreements and third‐party management contracts with established hotel operators.

As of the most recent reporting period, Sunstone's portfolio includes approximately 97 hotels and nearly 25,000 guest rooms across 19 states, with concentrations in major metropolitan and select high‐growth secondary markets.

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