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

Key Points

• Analysts have a consensus recommendation of "Hold" on Sunstone Hotel Investors from eight brokerages (1 sell, 5 hold, 2 buy) with an average 1‑year target price of $10.00.
• Sunstone beat quarterly expectations with $0.20 EPS vs. $0.18 expected and revenue of $236.97M (up 10.3% year‑over‑year), and issued FY2026 guidance of 0.810–0.940 EPS (sell‑side consensus ~0.87).
• The company recently paid a quarterly dividend of $0.09 (annualized $0.36) for a 3.7% yield900%, raising sustainability concerns.

Shares of Sunstone Hotel Investors, Inc. (NYSE:SHO - Get Free Report) have been given a consensus recommendation of "Hold" by the eight brokerages that are presently covering the firm, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, five have assigned a hold recommendation and two have issued a buy recommendation on the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $10.00.

A number of equities research analysts have weighed in on the stock. Truist Financial boosted their target price on shares of Sunstone Hotel Investors from $10.00 to $11.00 and gave the stock a "hold" rating in a report on Thursday, March 26th. Robert W. Baird reissued a "neutral" rating and issued a $10.00 price objective on shares of Sunstone Hotel Investors in a research note on Monday, January 12th. Weiss Ratings restated a "hold (c-)" rating on shares of Sunstone Hotel Investors in a report on Wednesday, January 21st. Zacks Research raised Sunstone Hotel Investors from a "strong sell" rating to a "hold" rating in a report on Friday, April 17th. Finally, LADENBURG THALM/SH SH began coverage on Sunstone Hotel Investors in a research note on Thursday, March 26th. They issued a "hold" rating and a $10.00 price target for the company.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. State Street Corp raised its holdings in Sunstone Hotel Investors by 4.9% during the 2nd quarter. State Street Corp now owns 12,179,383 shares of the real estate investment trust's stock worth $106,784,000 after purchasing an additional 571,619 shares during the last quarter. Bank of America Corp DE raised its holdings in Sunstone Hotel Investors by 7.1% during the 3rd quarter. Bank of America Corp DE now owns 7,753,798 shares of the real estate investment trust's stock worth $72,653,000 after purchasing an additional 513,641 shares during the last quarter. Alyeska Investment Group L.P. raised its holdings in Sunstone Hotel Investors by 86.8% during the 4th quarter. Alyeska Investment Group L.P. now owns 5,369,789 shares of the real estate investment trust's stock worth $48,006,000 after purchasing an additional 2,495,914 shares during the last quarter. Balyasny Asset Management L.P. bought a new position in Sunstone Hotel Investors during the 2nd quarter worth approximately $41,332,000. Finally, Woodline Partners LP bought a new position in Sunstone Hotel Investors during the 3rd quarter worth approximately $44,295,000. Institutional investors own 99.37% of the company's stock.

Sunstone Hotel Investors Trading Up 1.1%

NYSE SHO opened at $9.85 on Thursday. The company has a market cap of $1.86 billion, a price-to-earnings ratio of 246.19, a price-to-earnings-growth ratio of 2.67 and a beta of 0.97. Sunstone Hotel Investors has a twelve month low of $8.06 and a twelve month high of $10.27. The company has a quick ratio of 2.94, a current ratio of 2.94 and a debt-to-equity ratio of 0.55. The business's fifty day moving average is $9.33 and its 200 day moving average is $9.22.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last issued its earnings results on Friday, February 27th. The real estate investment trust reported $0.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.18 by $0.02. Sunstone Hotel Investors had a return on equity of 1.44% and a net margin of 2.56%.The business had revenue of $236.97 million during the quarter, compared to analysts' expectations of $226.18 million. During the same quarter in the prior year, the firm earned $0.16 EPS. The business's revenue for the quarter was up 10.3% compared to the same quarter last year. Sunstone Hotel Investors has set its FY 2026 guidance at 0.810-0.940 EPS. As a group, sell-side analysts expect that Sunstone Hotel Investors will post 0.87 EPS for the current fiscal year.

Sunstone Hotel Investors Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st were issued a dividend of $0.09 per share. The ex-dividend date was Tuesday, March 31st. This represents a $0.36 annualized dividend and a yield of 3.7%. Sunstone Hotel Investors's dividend payout ratio (DPR) is presently 900.00%.

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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