Sunstone Hotel Investors (NYSE:SHO) Downgraded by Wall Street Zen to Sell

Key Points

• Wall Street Zen downgraded Sunstone Hotel Investors from a "hold" to a "sell" rating in a recent research report.
• Wells Fargo lowered its price target for Sunstone Hotel Investors from $9.00 to $8.50, while JPMorgan set a price target of $8.00 with an "underweight" rating.
• Sunstone Hotel Investors reported earnings of $0.28 EPS for the last quarter, beating estimates, and had a revenue increase of 5% year-over-year.

Wall Street Zen downgraded shares of Sunstone Hotel Investors (NYSE:SHO - Free Report) from a hold rating to a sell rating in a research note released on Friday morning.

SHO has been the subject of several other reports. Evercore ISI increased their price objective on Sunstone Hotel Investors from $10.00 to $11.00 and gave the stock an "outperform" rating in a research report on Monday, July 28th. Truist Financial decreased their price target on Sunstone Hotel Investors from $11.00 to $10.00 and set a "hold" rating on the stock in a research note on Wednesday, September 3rd. Wells Fargo & Company cut their price objective 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, JPMorgan Chase & Co. began coverage on Sunstone Hotel Investors in a research report on Monday, June 23rd. They set an "underweight" rating and a $8.00 price objective for the company. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Sunstone Hotel Investors has an average rating of "Hold" and a consensus target price of $8.93.

Sunstone Hotel Investors Trading Down 1.2%

Sunstone Hotel Investors stock traded down $0.12 during midday trading on Friday, hitting $9.27. 644,884 shares of the stock were exchanged, compared to its average volume of 2,353,049. The company has a current ratio of 2.73, a quick ratio of 2.73 and a debt-to-equity ratio of 0.51. The stock's 50-day simple moving average is $9.07 and its 200 day simple moving average is $9.03. Sunstone Hotel Investors has a fifty-two week low of $7.45 and a fifty-two week high of $12.41. The stock has a market capitalization of $1.76 billion, a price-to-earnings ratio of 463.98, a PEG ratio of 3.46 and a beta of 1.29.

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

Sunstone Hotel Investors Dividend Announcement

The company also recently announced 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. This represents a $0.36 annualized dividend and a yield of 3.9%. The ex-dividend date of this dividend is Tuesday, September 30th. Sunstone Hotel Investors's payout ratio is currently 1,800.00%.

Hedge Funds Weigh In On Sunstone Hotel Investors

Institutional investors have recently bought and sold shares of the company. Point72 Asia Singapore Pte. Ltd. acquired a new position in Sunstone Hotel Investors in the 4th quarter valued at about $33,000. Hantz Financial Services Inc. grew its position in Sunstone Hotel Investors by 951.7% in the 2nd quarter. Hantz Financial Services Inc. now owns 3,008 shares of the real estate investment trust's stock valued at $26,000 after acquiring an additional 2,722 shares in the last quarter. GF Fund Management CO. LTD. acquired a new position in Sunstone Hotel Investors in the 4th quarter valued at about $42,000. Assetmark Inc. grew its position in Sunstone Hotel Investors by 210.4% in the 2nd quarter. Assetmark Inc. now owns 3,635 shares of the real estate investment trust's stock valued at $32,000 after acquiring an additional 2,464 shares in the last quarter. Finally, GAMMA Investing LLC grew its position in Sunstone Hotel Investors by 47.7% in the 1st quarter. GAMMA Investing LLC now owns 4,831 shares of the real estate investment trust's stock valued at $45,000 after acquiring an additional 1,560 shares in the last quarter. 99.37% of the stock is owned by institutional investors and hedge funds.

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.