Sunstone Hotel Investors (NYSE:SHO) Reaches New 1-Year High - Still a Buy?

Key Points

• Sunstone Hotel Investors (NYSE: SHO) hit a new 52-week high of $12.14, extending a recent run in the stock even though it last traded slightly below that level.
• Analyst sentiment remains mixed but generally positive: the stock carries a Moderate Buy consensus, with several firms recently raising price targets, including Wells Fargo to $13 and Citigroup and Truist also lifting their objectives.
• The REIT reported stronger-than-expected Q1 results, beating EPS and revenue estimates, and also announced a quarterly dividend of $0.09 per share, equal to a 3.1% annualized yield.

Sunstone Hotel Investors, Inc. (NYSE:SHO - Get Free Report)'s share price reached a new 52-week high during trading on Monday . The company traded as high as $12.14 and last traded at $11.8140, with a volume of 859 shares. The stock had previously closed at $11.92.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on SHO shares. Citigroup increased their price objective on Sunstone Hotel Investors from $9.50 to $10.00 and gave the company a "neutral" rating in a research report on Wednesday, May 6th. Truist Financial upped their target price on shares of Sunstone Hotel Investors from $10.00 to $11.00 and gave the company a "hold" rating in a research note on Thursday, March 26th. Zacks Research raised Sunstone Hotel Investors from a "hold" rating to a "strong-buy" rating in a research report on Monday, May 18th. LADENBURG THALM/SH SH began coverage on shares of Sunstone Hotel Investors in a research report on Thursday, March 26th. They issued a "hold" rating and a $10.00 price objective on the stock. Finally, Wells Fargo & Company increased their target price on Sunstone Hotel Investors from $12.00 to $13.00 and gave the stock an "overweight" rating in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Sunstone Hotel Investors currently has a consensus rating of "Moderate Buy" and an average target price of $10.83.

Sunstone Hotel Investors Stock Down 1.0%

The firm has a market cap of $2.20 billion, a P/E ratio of 107.46, a price-to-earnings-growth ratio of 2.67 and a beta of 0.98. The company has a quick ratio of 3.42, a current ratio of 3.42 and a debt-to-equity ratio of 0.58. The firm has a fifty day moving average of $10.74 and a 200-day moving average of $9.73.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last released its earnings results 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 net margin of 3.84% and a return on equity of 2.27%. The business had revenue of $259.71 million during the quarter, compared to analysts' expectations of $244.29 million. During the same period last year, the business earned $0.21 earnings per share. The firm'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. On average, equities research analysts anticipate that Sunstone Hotel Investors, Inc. 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 issued a $0.09 dividend. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $0.36 annualized dividend and a yield of 3.1%. Sunstone Hotel Investors's payout ratio is currently 327.27%.

Insider Buying and Selling at Sunstone Hotel Investors

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

Institutional Trading of Sunstone Hotel Investors

Institutional investors have recently modified their holdings of the business. Bank of America Corp DE lifted its stake in shares of Sunstone Hotel Investors by 21.1% in the first quarter. Bank of America Corp DE now owns 10,099,538 shares of the real estate investment trust's stock worth $90,997,000 after acquiring an additional 1,757,965 shares during the period. Amundi boosted its stake in Sunstone Hotel Investors by 29.8% during the first quarter. Amundi now owns 132,464 shares of the real estate investment trust's stock worth $1,194,000 after acquiring an additional 30,384 shares in the last quarter. California State Teachers Retirement System grew its holdings in Sunstone Hotel Investors by 33.1% in the first quarter. California State Teachers Retirement System now owns 228,623 shares of the real estate investment trust's stock worth $2,060,000 after purchasing an additional 56,837 shares during the period. Royal Bank of Canada grew its holdings in Sunstone Hotel Investors by 1.2% in the first quarter. Royal Bank of Canada now owns 103,294 shares of the real estate investment trust's stock worth $931,000 after purchasing an additional 1,204 shares during the period. Finally, Quantinno Capital Management LP increased its stake in Sunstone Hotel Investors by 109.5% in the first quarter. Quantinno Capital Management LP now owns 61,399 shares of the real estate investment trust's stock valued at $553,000 after purchasing an additional 32,087 shares in the last quarter. 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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