Sunstone Hotel Investors, Inc. (NYSE:SHO) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Sunstone Hotel Investors has a consensus analyst rating of “Moderate Buy” from eight brokerage firms, with an average 1-year price target of about $10.83.
• The company recently beat quarterly expectations, reporting $0.27 EPS versus the $0.22 estimate and $259.71 million in revenue versus the $244.29 million forecast, with revenue up 10.9% year over year.
• Sunstone declared a quarterly dividend of $0.09 per share to be paid July 15, while insider Robert C. Springer sold 89,631 shares in a transaction valued at about $1.04 million.

Shares of Sunstone Hotel Investors, Inc. (NYSE:SHO - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the eight ratings firms that are presently covering the company, Marketbeat.com reports. Five equities research analysts have rated the stock with a hold recommendation, two have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1 year price target among analysts that have issued ratings on the stock in the last year is $10.8333.

SHO has been the subject of several recent analyst reports. Citigroup boosted their price objective on shares of Sunstone Hotel Investors from $9.50 to $10.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. Zacks Research upgraded shares of Sunstone Hotel Investors from a "hold" rating to a "strong-buy" rating in a research note on Monday, May 18th. LADENBURG THALM/SH SH began coverage on shares of Sunstone Hotel Investors in a report on Thursday, March 26th. They issued a "hold" rating and a $10.00 price target on the stock. Truist Financial upped their price target on Sunstone Hotel Investors from $10.00 to $11.00 and gave the stock a "hold" rating in a research report on Thursday, March 26th. Finally, Wells Fargo & Company upped their price target on Sunstone Hotel Investors from $12.00 to $13.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 24th.

Sunstone Hotel Investors Price Performance

Shares of SHO stock opened at $11.28 on Tuesday. The stock's 50-day moving average is $11.10 and its 200 day moving average is $9.90. Sunstone Hotel Investors has a 1-year low of $8.48 and a 1-year high of $12.07. The company has a debt-to-equity ratio of 0.58, a current ratio of 3.42 and a quick ratio of 3.42. The company has a market cap of $2.10 billion, a P/E ratio of 102.51, a PEG ratio of 2.51 and a beta of 0.97.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last announced its earnings results on Tuesday, May 5th. The real estate investment trust reported $0.27 EPS for the quarter, topping analysts' consensus estimates of $0.22 by $0.05. The business had revenue of $259.71 million during the quarter, compared to the consensus estimate of $244.29 million. Sunstone Hotel Investors had a net margin of 3.84% and a return on equity of 2.27%. The firm's revenue was up 10.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.21 earnings per share. Sunstone Hotel Investors has set its FY 2026 guidance at 0.880-0.960 EPS. Research analysts predict that Sunstone Hotel Investors will post 0.91 earnings per share for the current fiscal year.

Sunstone Hotel Investors Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be given a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a yield of 3.2%. The ex-dividend date of this dividend is Tuesday, June 30th. Sunstone Hotel Investors's dividend payout ratio is currently 327.27%.

Insider Buying and Selling

In other Sunstone Hotel Investors news, insider Robert C. Springer sold 89,631 shares of the firm's stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $11.62, for a total value of $1,041,512.22. Following the completion of the sale, the insider owned 573,743 shares of the company's stock, valued at approximately $6,666,893.66. This trade represents a 13.51% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On Sunstone Hotel Investors

Several hedge funds have recently modified their holdings of the stock. Balyasny Asset Management L.P. acquired a new position in Sunstone Hotel Investors during the 2nd quarter valued at approximately $41,332,000. Woodline Partners LP acquired a new stake in shares of Sunstone Hotel Investors during the third quarter worth $44,295,000. Alyeska Investment Group L.P. grew its holdings in shares of Sunstone Hotel Investors by 86.8% during the fourth quarter. Alyeska Investment Group L.P. now owns 5,369,789 shares of the real estate investment trust's stock valued at $48,006,000 after buying an additional 2,495,914 shares during the last quarter. SG Americas Securities LLC grew its holdings in shares of Sunstone Hotel Investors by 1,899.5% during the first quarter. SG Americas Securities LLC now owns 2,244,427 shares of the real estate investment trust's stock valued at $20,222,000 after buying an additional 2,132,180 shares during the last quarter. Finally, Bank of America Corp DE increased its position in shares of Sunstone Hotel Investors by 21.1% in the 1st quarter. Bank of America Corp DE now owns 10,099,538 shares of the real estate investment trust's stock valued at $90,997,000 after acquiring an additional 1,757,965 shares during the period. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.