Sunstone Hotel Investors (NYSE:SHO) Shares Gap Down Following Analyst Downgrade

Sunstone Hotel Investors, Inc. (NYSE:SHO) gapped down before the market opened on Monday after Baird R W downgraded the stock from a strong-buy rating to a hold rating. The stock had previously closed at $9.42, but opened at $9.10. Sunstone Hotel Investors shares last traded at $9.2670, with a volume of 115,110 shares traded.

A number of other research firms also recently issued reports on SHO. Wall Street Zen downgraded Sunstone Hotel Investors from a “hold” rating to a “sell” rating in a research report on Sunday, November 16th. Wells Fargo & Company upgraded shares of Sunstone Hotel Investors from an “equal weight” rating to an “overweight” rating and raised their price target for the company 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 note on Monday. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Sunstone Hotel Investors in a research note on Wednesday, October 8th. Three analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Sunstone Hotel Investors currently has a consensus rating of “Hold” and an average price target of $9.38.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of SHO. Hantz Financial Services Inc. raised its position in shares of Sunstone Hotel Investors by 951.7% during 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. Assetmark Inc. boosted its holdings in shares of 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 buying an additional 2,464 shares during the period. GAMMA Investing LLC raised its position in shares of Sunstone Hotel Investors by 33.0% during the 2nd quarter. GAMMA Investing LLC now owns 6,426 shares of the real estate investment trust’s stock worth $56,000 after purchasing an additional 1,595 shares during the period. Blue Trust Inc. lifted its holdings in shares of Sunstone Hotel Investors by 46.8% in the 2nd 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. Finally, CWM LLC grew its stake in Sunstone Hotel Investors by 579.8% during the 2nd quarter. CWM LLC now owns 8,029 shares of the real estate investment trust’s stock worth $70,000 after buying an additional 6,848 shares during the last quarter. Institutional investors own 99.37% of the company’s stock.

Sunstone Hotel Investors Stock Performance

The company has a debt-to-equity ratio of 0.55, a quick ratio of 3.08 and a current ratio of 3.08. The stock has a 50 day moving average of $9.22 and a 200 day moving average of $9.19. The stock has a market capitalization of $1.71 billion, a P/E ratio of 11.28, a P/E/G ratio of 2.50 and a beta of 1.02.

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

Sunstone Hotel Investors Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 15th. Stockholders of record on Wednesday, December 31st will be paid a $0.09 dividend. The ex-dividend date of this dividend is Wednesday, December 31st. This represents a $0.36 annualized dividend and a dividend yield of 4.0%.

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.