Sunstone Hotel Investors, Inc. (NYSE:SHO) Receives $9.38 Consensus Price Target from Brokerages

Sunstone Hotel Investors, Inc. (NYSE:SHO) has received an average rating of “Hold” from the ten research firms that are presently covering the firm, Marketbeat.com reports. Three equities research analysts have rated the stock with a sell recommendation, four have issued a hold recommendation and three have issued a buy recommendation on the company. The average 1-year price objective among brokerages that have issued ratings on the stock in the last year is $9.3750.

A number of equities research analysts recently weighed in on the company. Weiss Ratings restated a “hold (c-)” rating on shares of Sunstone Hotel Investors in a report on Wednesday, January 21st. 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. Wall Street Zen upgraded Sunstone Hotel Investors from a “sell” rating to a “hold” rating in a research report on Saturday, February 28th. Robert W. Baird reissued a “neutral” rating and issued a $10.00 target price on shares of Sunstone Hotel Investors in a report on Monday, January 12th. Finally, Zacks Research cut Sunstone Hotel Investors from a “hold” rating to a “strong sell” rating in a research report on Wednesday, January 14th.

Sunstone Hotel Investors Stock Down 1.3%

SHO stock opened at $8.94 on Wednesday. The company has a current ratio of 2.94, a quick ratio of 2.94 and a debt-to-equity ratio of 0.55. The company’s 50-day moving average price is $9.21 and its 200 day moving average price is $9.25. Sunstone Hotel Investors has a 52 week low of $7.45 and a 52 week high of $10.27. The company has a market cap of $1.69 billion, a P/E ratio of 223.43, a P/E/G ratio of 2.46 and a beta of 0.96.

Sunstone Hotel Investors (NYSE:SHO) last issued its earnings results on Friday, February 27th. The real estate investment trust reported $0.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.18 by $0.02. Sunstone Hotel Investors had a net margin of 2.56% and a return on equity of 1.44%. The company had revenue of $236.97 million during the quarter, compared to analysts’ expectations of $226.18 million. During the same period last year, the company posted $0.16 earnings per share. The firm’s quarterly revenue was up 10.3% compared to the same quarter last year. Sunstone Hotel Investors has set its FY 2026 guidance at 0.810-0.940 EPS. On average, research analysts expect that Sunstone Hotel Investors will post 0.79 earnings per share for the current fiscal year.

Sunstone Hotel Investors Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be paid a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a yield of 4.0%. The ex-dividend date of this dividend is Tuesday, March 31st. Sunstone Hotel Investors’s dividend payout ratio is presently 900.00%.

Hedge Funds Weigh In On Sunstone Hotel Investors

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Squarepoint Ops LLC purchased a new position in shares of Sunstone Hotel Investors during the 2nd quarter worth approximately $1,997,000. Tributary Capital Management LLC raised its position in shares of Sunstone Hotel Investors by 92.4% during the 3rd quarter. Tributary Capital Management LLC now owns 2,691,706 shares of the real estate investment trust’s stock worth $25,221,000 after purchasing an additional 1,292,691 shares during the last quarter. Westwood Holdings Group Inc. raised its position in shares of Sunstone Hotel Investors by 10.7% during the 2nd quarter. Westwood Holdings Group Inc. now owns 3,961,174 shares of the real estate investment trust’s stock worth $34,383,000 after purchasing an additional 384,277 shares during the last quarter. Envestnet Asset Management Inc. lifted its stake in Sunstone Hotel Investors by 53.1% in the 2nd quarter. Envestnet Asset Management Inc. now owns 357,665 shares of the real estate investment trust’s stock valued at $3,105,000 after buying an additional 123,989 shares in the last quarter. Finally, Norges Bank acquired a new stake in Sunstone Hotel Investors during the 2nd quarter valued at $2,143,000. Institutional investors and hedge funds 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.