Sunstone Hotel Investors (NYSE:SHO) Rating Increased to Strong-Buy at Zacks Research

Zacks Research upgraded shares of Sunstone Hotel Investors (NYSE:SHO) from a hold rating to a strong-buy rating in a research report sent to investors on Monday morning,Zacks.com reports.

A number of other research firms also recently commented on SHO. LADENBURG THALM/SH SH started coverage on shares of Sunstone Hotel Investors in a research note on Thursday, March 26th. They set a “hold” rating and a $10.00 price objective for the company. Wall Street Zen upgraded shares of Sunstone Hotel Investors from a “sell” rating to a “hold” rating in a research note on Saturday, February 28th. Wells Fargo & Company reduced their price objective on shares of Sunstone Hotel Investors from $11.00 to $10.00 and set an “overweight” rating for the company in a research note on Tuesday, March 24th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Sunstone Hotel Investors in a research note on Wednesday, January 21st. Finally, Truist Financial raised their target price on shares of Sunstone Hotel Investors from $10.00 to $11.00 and gave the company a “hold” rating in a research note on Thursday, March 26th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $10.00.

Sunstone Hotel Investors Price Performance

SHO stock opened at $10.27 on Monday. The stock has a 50-day moving average price of $9.52 and a two-hundred day moving average price of $9.31. The stock has a market cap of $1.91 billion, a PE ratio of 93.40, a price-to-earnings-growth ratio of 2.44 and a beta of 0.96. The company has a current ratio of 3.42, a quick ratio of 3.42 and a debt-to-equity ratio of 0.58. Sunstone Hotel Investors has a 1 year low of $8.43 and a 1 year high of $10.57.

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

Sunstone Hotel Investors Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th will be given a dividend of $0.09 per share. The ex-dividend date is Tuesday, June 30th. This represents a $0.36 annualized dividend and a yield of 3.5%. Sunstone Hotel Investors’s dividend payout ratio (DPR) is 327.27%.

Institutional Investors Weigh In On Sunstone Hotel Investors

Hedge funds have recently bought and sold shares of the stock. Kestra Advisory Services LLC acquired a new stake in Sunstone Hotel Investors during the fourth quarter worth approximately $26,000. North Star Investment Management Corp. acquired a new stake in Sunstone Hotel Investors during the first quarter worth approximately $27,000. Hantz Financial Services Inc. lifted its position in Sunstone Hotel Investors by 62.4% during the third quarter. Hantz Financial Services Inc. now owns 4,884 shares of the real estate investment trust’s stock worth $46,000 after acquiring an additional 1,876 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its position in Sunstone Hotel Investors by 27.4% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,274 shares of the real estate investment trust’s stock worth $47,000 after acquiring an additional 1,135 shares during the last quarter. Finally, FIL Ltd lifted its position in Sunstone Hotel Investors by 57.2% during the fourth quarter. FIL Ltd now owns 9,010 shares of the real estate investment trust’s stock worth $81,000 after acquiring an additional 3,280 shares during the last quarter. 99.37% of the stock is currently owned by institutional investors and hedge funds.

Sunstone Hotel Investors Company Profile

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.