Sunstone Hotel Investors, Inc. (NYSE:SHO) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Sunstone Hotel Investors, Inc. (NYSE:SHO) has been assigned an average recommendation of “Moderate Buy” from the eight ratings firms that are presently covering the firm, MarketBeat.com reports. Five analysts have rated the stock with a hold rating, two have issued a buy rating and one has issued a strong buy rating on the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $10.8333.

A number of research firms have recently weighed in on SHO. 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 note on Wednesday, May 6th. Wall Street Zen raised Sunstone Hotel Investors from a “sell” rating to a “hold” rating in a research note on Saturday, February 28th. Truist Financial increased their price objective on 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 note on Monday, May 18th. Finally, Wells Fargo & Company increased their price objective on Sunstone Hotel Investors from $12.00 to $13.00 and gave the company an “overweight” rating in a research note on Wednesday.

Sunstone Hotel Investors Stock Down 0.5%

Shares of SHO opened at $11.58 on Friday. The firm has a market cap of $2.16 billion, a P/E ratio of 105.27, a P/E/G ratio of 2.60 and a beta of 0.98. The stock has a 50 day simple moving average of $10.70 and a two-hundred day simple moving average of $9.71. The company has a debt-to-equity ratio of 0.58, a current ratio of 3.42 and a quick ratio of 3.42. Sunstone Hotel Investors has a 1 year low of $8.48 and a 1 year high of $12.07.

Sunstone Hotel Investors (NYSE:SHO) last issued its earnings results on Tuesday, May 5th. The real estate investment trust reported $0.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $0.05. The business had revenue of $259.71 million during the quarter, compared to analyst estimates of $244.30 million. Sunstone Hotel Investors had a return on equity of 2.27% and a net margin of 3.84%.Sunstone Hotel Investors’s revenue for the quarter was up 10.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.21 earnings per share. Sunstone Hotel Investors has set its FY 2026 guidance at 0.880-0.960 EPS. On average, analysts forecast that Sunstone Hotel Investors will post 0.91 earnings per share for the current fiscal year.

Sunstone Hotel Investors Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be paid a $0.09 dividend. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $0.36 dividend on an annualized basis and a yield of 3.1%. Sunstone Hotel Investors’s dividend payout ratio (DPR) is presently 327.27%.

Insider Buying and Selling

In related news, insider Robert C. Springer sold 89,631 shares of the firm’s stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $11.62, for a total value of $1,041,512.22. Following the completion of the sale, the insider owned 573,743 shares of the company’s stock, valued at $6,666,893.66. This trade represents a 13.51% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 1.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Sunstone Hotel Investors

A number of institutional investors have recently added to or reduced their stakes in SHO. Balyasny Asset Management L.P. bought a new position in Sunstone Hotel Investors in the second quarter worth $41,332,000. Woodline Partners LP bought a new position in Sunstone Hotel Investors in the third quarter worth $44,295,000. Alyeska Investment Group L.P. raised its holdings in Sunstone Hotel Investors by 86.8% in the fourth quarter. Alyeska Investment Group L.P. now owns 5,369,789 shares of the real estate investment trust’s stock worth $48,006,000 after purchasing an additional 2,495,914 shares in the last quarter. SG Americas Securities LLC raised its holdings in Sunstone Hotel Investors by 1,899.5% in the first quarter. SG Americas Securities LLC now owns 2,244,427 shares of the real estate investment trust’s stock worth $20,222,000 after purchasing an additional 2,132,180 shares in the last quarter. Finally, Bank of America Corp DE raised its holdings in 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 purchasing an additional 1,757,965 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.