Sunstone Hotel Investors (NYSE:SHO) Rating Increased to Buy at Wall Street Zen

Key Points

• Sunstone Hotel Investors was upgraded by Wall Street Zen from “hold” to “buy”, adding to a generally positive analyst tone around the stock.
• Other brokerages have also been revising their views and price targets, with the consensus currently sitting at “Moderate Buy” and an average price target of $10.83.
• The company recently reported better-than-expected quarterly results, with EPS of $0.27 versus $0.22 expected and revenue up 10.9% year over year; the stock also traded up 1.9% to $11.73.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday.

Several other brokerages also recently weighed in on SHO. Citigroup increased their target price 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. Weiss Ratings restated a "hold (c)" rating on shares of Sunstone Hotel Investors in a research report on Friday, July 10th. Wells Fargo & Company upped their price objective on Sunstone Hotel Investors from $12.00 to $13.00 and gave the company an "overweight" rating in a research note on Wednesday, June 24th. Truist Financial increased their price objective 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, 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 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $10.83.

Sunstone Hotel Investors Stock Up 1.9%

SHO stock opened at $11.73 on Friday. The company has a market cap of $2.19 billion, a price-to-earnings ratio of 106.69, a price-to-earnings-growth ratio of 2.58 and a beta of 0.97. The company has a fifty day moving average price of $11.20 and a 200 day moving average price of $9.96. The company has a debt-to-equity ratio of 0.58, a current ratio of 3.42 and a quick ratio of 3.42. Sunstone Hotel Investors has a 12 month low of $8.48 and a 12 month high of $12.07.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The real estate investment trust reported $0.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $0.05. The company had revenue of $259.71 million for 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%. Sunstone Hotel Investors's revenue for the quarter was up 10.9% on a year-over-year basis. During the same period last year, the firm posted $0.21 EPS. Sunstone Hotel Investors has set its FY 2026 guidance at 0.880-0.960 EPS. Sell-side analysts expect that Sunstone Hotel Investors will post 0.91 earnings per share for the current year.

Insider Activity at Sunstone Hotel Investors

In other news, insider Robert C. Springer sold 89,631 shares of the firm's stock in a transaction that occurred on 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 directly owned 573,743 shares of the company's stock, valued at $6,666,893.66. This trade represents a 13.51% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.40% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of SHO. Tributary Capital Management LLC boosted its position in shares of Sunstone Hotel Investors by 14.2% during the 4th quarter. Tributary Capital Management LLC now owns 1,537,256 shares of the real estate investment trust's stock worth $13,743,000 after purchasing an additional 191,403 shares in the last quarter. Legal & General Group Plc lifted its stake in shares of Sunstone Hotel Investors by 12.9% in the fourth quarter. Legal & General Group Plc now owns 3,408,676 shares of the real estate investment trust's stock valued at $30,474,000 after purchasing an additional 389,210 shares during the period. Centersquare Investment Management LLC lifted its stake in shares of Sunstone Hotel Investors by 8.5% in the fourth quarter. Centersquare Investment Management LLC now owns 1,517,366 shares of the real estate investment trust's stock valued at $13,565,000 after purchasing an additional 119,290 shares during the period. M&T Bank Corp purchased a new stake in Sunstone Hotel Investors during the fourth quarter worth about $635,000. Finally, Hsbc Holdings PLC boosted its holdings in Sunstone Hotel Investors by 23.1% during the fourth quarter. Hsbc Holdings PLC now owns 598,257 shares of the real estate investment trust's stock worth $5,353,000 after buying an additional 112,332 shares in the last quarter. Hedge funds and other institutional investors own 99.37% of the company's stock.

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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