Sunstone Hotel Investors (NYSE:SHO) Sees Strong Trading Volume – Should You Buy?

Shares of Sunstone Hotel Investors, Inc. (NYSE:SHO) saw an uptick in trading volume on Tuesday . 5,967,845 shares traded hands during trading, an increase of 235% from the previous session’s volume of 1,783,802 shares.The stock last traded at $8.9150 and had previously closed at $9.03.

Analyst Ratings Changes

A number of equities research analysts have commented on the stock. Wall Street Zen downgraded shares of Sunstone Hotel Investors from a “hold” rating to a “sell” rating in a research report on Sunday, November 16th. Wells Fargo & Company raised Sunstone Hotel Investors from an “equal weight” rating to an “overweight” rating and lifted their price objective for the stock from $10.00 to $11.00 in a report on Monday, January 5th. Robert W. Baird reiterated a “neutral” rating and set a $10.00 price objective on shares of Sunstone Hotel Investors in a research report on Monday, January 12th. Zacks Research cut Sunstone Hotel Investors from a “hold” rating to a “strong sell” rating in a research report on Wednesday, January 14th. Finally, Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Sunstone Hotel Investors in a research report on Wednesday, January 21st. Three analysts have rated the stock with a Buy rating, four have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, Sunstone Hotel Investors presently has an average rating of “Hold” and a consensus price target of $9.38.

Sunstone Hotel Investors Trading Down 2.9%

The firm has a market capitalization of $1.66 billion, a P/E ratio of 11.02, a PEG ratio of 1.85 and a beta of 1.02. The company has a quick ratio of 3.08, a current ratio of 3.08 and a debt-to-equity ratio of 0.55. The stock has a fifty day simple moving average of $9.16 and a 200 day simple moving average of $9.20.

Sunstone Hotel Investors (NYSE:SHO) last issued its earnings results on Friday, November 7th. The real estate investment trust reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.15 by $0.02. Sunstone Hotel Investors had a return on equity of 1.04% and a net margin of 1.94%.The company had revenue of $229.32 million for the quarter, compared to the consensus estimate of $226.05 million. During the same quarter last year, the company earned $0.18 EPS. The firm’s quarterly revenue was up 1.3% on a year-over-year basis. Sunstone Hotel Investors has set its FY 2025 guidance at 0.800-0.870 EPS. As a group, research analysts forecast that Sunstone Hotel Investors, Inc. will post 0.79 EPS for the current year.

Sunstone Hotel Investors Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, January 15th. Investors of record on Wednesday, December 31st were paid a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a yield of 4.1%. The ex-dividend date of this dividend was Wednesday, December 31st.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Hantz Financial Services Inc. grew its position in shares of Sunstone Hotel Investors by 951.7% during the second quarter. Hantz Financial Services Inc. now owns 3,008 shares of the real estate investment trust’s stock valued at $26,000 after purchasing an additional 2,722 shares in the last quarter. Assetmark Inc. increased its stake 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 worth $32,000 after acquiring an additional 2,464 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its position in shares of Sunstone Hotel Investors by 27.4% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,274 shares of the real estate investment trust’s stock valued at $47,000 after acquiring an additional 1,135 shares during the last quarter. GAMMA Investing LLC grew its holdings in shares of Sunstone Hotel Investors by 33.0% in the second quarter. GAMMA Investing LLC now owns 6,426 shares of the real estate investment trust’s stock valued at $56,000 after purchasing an additional 1,595 shares in the last quarter. Finally, Blue Trust Inc. increased its position in Sunstone Hotel Investors by 46.8% in the second quarter. Blue Trust Inc. now owns 6,544 shares of the real estate investment trust’s stock worth $57,000 after purchasing an additional 2,087 shares during 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.