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

Key Points

• Analyst consensus: Eleven brokerages give Sunstone an average "Hold" rating (3 sell, 5 hold, 3 buy) with a mean 12‑month price target of $9.44.
• Recent results and outlook: Sunstone beat the quarter (EPS $0.20 vs. $0.18; revenue $236.97M vs. $226.18M) and set FY2026 guidance of $0.81–$0.94 EPS, versus analysts' ~0.79 EPS forecast for the year.
• Dividend and payout risk: The company declared a $0.09 quarterly dividend (annualized $0.36, ~4.0% yield), but a reported payout ratio of 900% raises questions about sustainability.

Sunstone Hotel Investors, Inc. (NYSE:SHO - Get Free Report) has received an average recommendation of "Hold" from the eleven brokerages that are covering the firm, Marketbeat reports. Three investment analysts have rated the stock with a sell recommendation, five have given a hold recommendation and three have assigned a buy recommendation to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $9.4444.

Several brokerages have recently issued reports on SHO. Wells Fargo & Company lowered their price target on Sunstone Hotel Investors from $11.00 to $10.00 and set an "overweight" rating on the stock in a research report on Tuesday, March 24th. Robert W. Baird restated a "neutral" rating and issued a $10.00 price objective on shares of Sunstone Hotel Investors in a report on Monday, January 12th. Truist Financial raised their target price on Sunstone Hotel Investors from $10.00 to $11.00 and gave the company a "hold" rating in a research note on Thursday, March 26th. LADENBURG THALM/SH SH began coverage on Sunstone Hotel Investors in a report on Thursday, March 26th. They set a "hold" rating and a $10.00 target price on the stock. Finally, Wall Street Zen upgraded shares of Sunstone Hotel Investors from a "sell" rating to a "hold" rating in a research report on Saturday, February 28th.

Sunstone Hotel Investors Trading Down 0.1%

Sunstone Hotel Investors stock opened at $9.01 on Friday. The firm has a 50 day simple moving average of $9.17 and a 200-day simple moving average of $9.21. The company has a debt-to-equity ratio of 0.55, a current ratio of 2.94 and a quick ratio of 2.94. The stock has a market capitalization of $1.70 billion, a PE ratio of 225.18, a price-to-earnings-growth ratio of 2.48 and a beta of 0.97. Sunstone Hotel Investors has a 12-month low of $7.45 and a 12-month high of $10.27.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last announced its earnings results on Friday, February 27th. The real estate investment trust reported $0.20 EPS for the quarter, topping the consensus estimate of $0.18 by $0.02. The firm had revenue of $236.97 million for the quarter, compared to analysts' expectations of $226.18 million. Sunstone Hotel Investors had a return on equity of 1.44% and a net margin of 2.56%.The firm's quarterly revenue was up 10.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.16 earnings per share. Sunstone Hotel Investors has set its FY 2026 guidance at 0.810-0.940 EPS. As a group, equities research analysts expect that Sunstone Hotel Investors will post 0.79 EPS for the current fiscal year.

Sunstone Hotel Investors Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be issued a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date is Tuesday, March 31st. Sunstone Hotel Investors's payout ratio is presently 900.00%.

Institutional Trading of Sunstone Hotel Investors

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Mirae Asset Global Investments Co. Ltd. grew its position in Sunstone Hotel Investors by 27.4% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,274 shares of the real estate investment trust's stock worth $47,000 after buying an additional 1,135 shares during the last quarter. California State Teachers Retirement System lifted its position in shares of Sunstone Hotel Investors by 0.7% during the 2nd 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 during the last quarter. AQR Capital Management LLC lifted its position in shares of 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 valued at $789,000 after acquiring an additional 1,307 shares during the last quarter. PNC Financial Services Group Inc. boosted its stake in shares of Sunstone Hotel Investors by 16.7% during the 3rd quarter. PNC Financial Services Group Inc. now owns 12,012 shares of the real estate investment trust's stock worth $113,000 after acquiring an additional 1,720 shares in the last quarter. Finally, CWM LLC boosted its stake in shares of Sunstone Hotel Investors by 21.7% during the 3rd quarter. CWM LLC now owns 9,773 shares of the real estate investment trust's stock worth $92,000 after acquiring an additional 1,744 shares in the last quarter. 99.37% of the stock is owned by institutional investors and hedge funds.

About Sunstone Hotel Investors

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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