Sunstone Hotel Investors (NYSE:SHO) Updates 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 guidance of 0.800-0.870 for the period, compared to the consensus earnings per share estimate of 0.898. The company issued revenue guidance of -.

Analyst Upgrades and Downgrades

Several equities analysts have commented on SHO shares. Wells Fargo & Company dropped 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. Evercore ISI lifted their price objective on Sunstone Hotel Investors from $10.00 to $11.00 and gave the stock an "outperform" rating in a report on Monday, July 28th. Morgan Stanley decreased their price target on Sunstone Hotel Investors from $9.00 to $7.00 and set an "underweight" rating for the company in a research note on Tuesday, April 22nd. JPMorgan Chase & Co. assumed coverage on Sunstone Hotel Investors in a report on Monday, June 23rd. They issued an "underweight" rating and a $8.00 price target for the company. Finally, Jefferies Financial Group reduced their price target on Sunstone Hotel Investors from $12.00 to $8.00 and set a "hold" rating on the stock in a research report on Wednesday, April 9th. Two research analysts have rated the stock with a sell rating, three have given a hold rating and two have issued a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $9.07.

Sunstone Hotel Investors Price Performance

Shares of NYSE SHO traded up $0.02 during mid-day trading on Thursday, hitting $8.78. 1,617,155 shares of the stock were exchanged, compared to its average volume of 2,377,378. The stock's fifty day simple moving average is $8.86 and its two-hundred day simple moving average is $9.39. The company has a market cap of $1.74 billion, a P/E ratio of 87.55, a PEG ratio of 1.94 and a beta of 1.30. Sunstone Hotel Investors has a twelve month low of $7.45 and a twelve month high of $12.41. The company has a debt-to-equity ratio of 0.47, a quick ratio of 2.89 and a current ratio of 2.89.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The real estate investment trust reported $0.28 EPS for the quarter, beating the consensus estimate of $0.26 by $0.02. The business had revenue of $259.77 million during the quarter, compared to the consensus estimate of $256.68 million. Sunstone Hotel Investors had a net margin of 3.85% and a return on equity of 1.93%. The firm's revenue was up 5.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.28 EPS. As a group, analysts forecast that Sunstone Hotel Investors will post 0.79 EPS for the current fiscal year.

Institutional Investors Weigh In On Sunstone Hotel Investors

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Royal Bank of Canada increased its position in Sunstone Hotel Investors by 13.9% in the first quarter. Royal Bank of Canada now owns 69,862 shares of the real estate investment trust's stock worth $658,000 after purchasing an additional 8,504 shares during the last quarter. AQR Capital Management LLC raised its position 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 last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Sunstone Hotel Investors by 3.1% in 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 buying an additional 3,607 shares during the period. Goldman Sachs Group Inc. increased its stake in 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 worth $26,231,000 after buying an additional 1,589,258 shares during the period. Finally, United Services Automobile Association purchased a new position in Sunstone Hotel Investors in the first quarter valued at approximately $120,000. 99.37% of the stock is currently owned by institutional investors.

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.

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