Sunstone Hotel Investors (NYSE:SHO) Releases FY 2025 Earnings Guidance

Key Points

• Sunstone Hotel Investors revised its FY 2025 earnings guidance to an earnings per share range of 0.800-0.870, which is below the consensus estimate of 0.898.
• An update from Wells Fargo reduced the target price for Sunstone's stock from $9.00 to $8.50, while Evercore ISI raised theirs from $10.00 to $11.00.
• The company reported a 5.0% increase in revenue year-over-year, with a quarterly earnings per share of $0.28, surpassing expectations.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) updated its FY 2025 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 0.800-0.870 for the period, compared to the consensus estimate of 0.898. The company issued revenue guidance of -.

Analysts Set New Price Targets

A number of equities research analysts recently commented on the company. Bank of America raised Sunstone Hotel Investors from an "underperform" rating to a "buy" rating and set a $10.00 price target for the company in a research report on Wednesday, April 30th. JPMorgan Chase & Co. started coverage on Sunstone Hotel Investors in a research report on Monday, June 23rd. They set an "underweight" rating and a $8.00 target price for the company. Morgan Stanley decreased their target price on Sunstone Hotel Investors from $9.00 to $7.00 and set an "underweight" rating for the company in a research report on Tuesday, April 22nd. 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 report on Tuesday, July 1st. Finally, Evercore ISI raised their target price on Sunstone Hotel Investors from $10.00 to $11.00 and gave the company an "outperform" rating in a research report on Monday, July 28th. Two research analysts have rated the stock with a sell rating, three have issued a hold rating and two have assigned a buy rating to the company's stock. Based on data from MarketBeat, Sunstone Hotel Investors has an average rating of "Hold" and a consensus target price of $9.07.

Sunstone Hotel Investors Stock Performance

SHO traded down $0.07 during trading hours on Monday, hitting $8.64. The stock had a trading volume of 2,552,954 shares, compared to its average volume of 1,893,417. The company's fifty day simple moving average is $8.84 and its 200 day simple moving average is $9.30. Sunstone Hotel Investors has a 1 year low of $7.45 and a 1 year high of $12.41. The stock has a market cap of $1.64 billion, a PE ratio of 432.42, a price-to-earnings-growth ratio of 1.99 and a beta of 1.30. The company has a quick ratio of 2.73, a current ratio of 2.73 and a debt-to-equity ratio of 0.51.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The real estate investment trust reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.02. Sunstone Hotel Investors had a return on equity of 1.12% and a net margin of 2.15%. The company had revenue of $259.77 million during the quarter, compared to analyst estimates of $256.68 million. During the same quarter last year, the firm posted $0.28 EPS. The firm's revenue for the quarter was up 5.0% on a year-over-year basis. Equities analysts anticipate that Sunstone Hotel Investors will post 0.79 earnings per share for the current year.

Sunstone Hotel Investors Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Tuesday, September 30th will be paid a $0.09 dividend. The ex-dividend date is Tuesday, September 30th. This represents a $0.36 annualized dividend and a yield of 4.2%. Sunstone Hotel Investors's dividend payout ratio (DPR) is currently 1,800.00%.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in SHO. Royal Bank of Canada boosted its position in shares of Sunstone Hotel Investors by 13.9% during the 1st quarter. Royal Bank of Canada now owns 69,862 shares of the real estate investment trust's stock valued at $658,000 after acquiring an additional 8,504 shares during the last quarter. AQR Capital Management LLC boosted its position in shares of Sunstone Hotel Investors by 1.6% during the 1st quarter. AQR Capital Management LLC now owns 83,864 shares of the real estate investment trust's stock valued at $789,000 after acquiring an additional 1,307 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Sunstone Hotel Investors by 3.1% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 119,358 shares of the real estate investment trust's stock valued at $1,123,000 after acquiring an additional 3,607 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in shares of Sunstone Hotel Investors by 132.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,787,519 shares of the real estate investment trust's stock valued at $26,231,000 after acquiring an additional 1,589,258 shares during the last quarter. Finally, United Services Automobile Association bought a new stake in shares of Sunstone Hotel Investors during the 1st quarter valued at about $120,000. Institutional investors own 99.37% of the company's stock.

About Sunstone Hotel Investors

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.