Sunstone Hotel Investors (NYSE:SHO) Shares Gap Up - Time to Buy?

Key Points

• Sunstone Hotel Investors shares saw a significant price gap up from $9.42 to $10.25 before settling at $9.81, with a trading volume of 693,476 shares.
• Analysts have mixed opinions on the stock, with ratings ranging from "Buy" to "Sell," and a consensus rating of "Hold" with an average target price of $8.93.
• The company announced a quarterly dividend of $0.09 per share, resulting in a 3.6% dividend yield, although its payout ratio stands at an unusually high 1,800.00%.

Sunstone Hotel Investors, Inc. (NYSE:SHO - Get Free Report) gapped up before the market opened on Friday . The stock had previously closed at $9.42, but opened at $10.25. Sunstone Hotel Investors shares last traded at $9.81, with a volume of 693,476 shares.

Wall Street Analysts Forecast Growth

SHO has been the subject of several recent analyst reports. Evercore ISI raised their target price on Sunstone Hotel Investors from $10.00 to $11.00 and gave the stock an "outperform" rating in a research note on Monday, July 28th. JPMorgan Chase & Co. initiated coverage on Sunstone Hotel Investors in a research note on Monday, June 23rd. They set an "underweight" rating and a $8.00 target price for the company. Wells Fargo & Company decreased their target price on Sunstone Hotel Investors from $9.00 to $8.50 and set an "equal weight" rating for the company in a research note on Tuesday, July 1st. Truist Financial reduced their price objective on Sunstone Hotel Investors from $11.00 to $10.00 and set a "hold" rating for the company in a research note on Wednesday, September 3rd. Finally, Wall Street Zen cut Sunstone Hotel Investors from a "hold" rating to a "sell" rating in a research note on Friday, September 5th. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $8.93.

Sunstone Hotel Investors Price Performance

The firm has a market capitalization of $1.89 billion, a PE ratio of 498.00, a price-to-earnings-growth ratio of 3.54 and a beta of 1.29. The business has a 50-day moving average of $9.14 and a 200 day moving average of $9.00. The company has a current ratio of 2.73, a quick ratio of 2.73 and a debt-to-equity ratio of 0.51.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The real estate investment trust reported $0.28 EPS for the quarter, beating analysts' consensus estimates of $0.26 by $0.02. The business had revenue of $259.77 million during the quarter, compared to analyst estimates of $256.68 million. Sunstone Hotel Investors had a return on equity of 1.12% and a net margin of 2.15%.Sunstone Hotel Investors's quarterly revenue was up 5.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.28 EPS. As a group, research analysts anticipate that Sunstone Hotel Investors, Inc. will post 0.79 EPS for the current fiscal year.

Sunstone Hotel Investors Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Tuesday, September 30th will be given a $0.09 dividend. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $0.36 annualized dividend and a yield of 3.6%. Sunstone Hotel Investors's payout ratio is currently 1,800.00%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. California State Teachers Retirement System boosted its position in Sunstone Hotel Investors by 0.7% in the second quarter. California State Teachers Retirement System now owns 178,604 shares of the real estate investment trust's stock worth $1,550,000 after purchasing an additional 1,170 shares during the last quarter. AQR Capital Management LLC raised its stake in shares of Sunstone Hotel Investors by 1.6% in the first quarter. AQR Capital Management LLC now owns 83,864 shares of the real estate investment trust's stock valued at $789,000 after buying an additional 1,307 shares during the period. GAMMA Investing LLC raised its stake in shares of Sunstone Hotel Investors by 47.7% in the first quarter. GAMMA Investing LLC now owns 4,831 shares of the real estate investment trust's stock valued at $45,000 after buying an additional 1,560 shares during the period. Ethic Inc. raised its stake in shares of Sunstone Hotel Investors by 12.7% in the second quarter. Ethic Inc. now owns 13,936 shares of the real estate investment trust's stock valued at $124,000 after buying an additional 1,573 shares during the period. Finally, Aberdeen Group plc raised its stake in shares of Sunstone Hotel Investors by 2.3% in the first quarter. Aberdeen Group plc now owns 73,502 shares of the real estate investment trust's stock valued at $692,000 after buying an additional 1,669 shares during the period. Hedge funds and other institutional investors own 99.37% of the company's stock.

Sunstone Hotel Investors Company Profile

Sunstone Hotel Investors, Inc is a lodging real estate investment trust ("REIT") that as of the date of this release owns 14 hotels comprised of 6,675 rooms, the majority of which are operated under nationally recognized brands. Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate.