Sunstone Hotel Investors (NYSE:SHO) Sets New 1-Year High – Time to Buy?

Sunstone Hotel Investors, Inc. (NYSE:SHO) shares hit a new 52-week high on Wednesday. The company traded as high as $12.83 and last traded at $12.6950, with a volume of 513,101 shares trading hands. The stock had previously closed at $12.77.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on SHO. Wall Street Zen downgraded shares of Sunstone Hotel Investors from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. JPMorgan Chase & Co. raised their price objective on Sunstone Hotel Investors from $10.00 to $11.00 and gave the stock an “underweight” rating in a report on Wednesday, October 21st. Weiss Ratings raised Sunstone Hotel Investors from a “hold (c)” rating to a “buy (b-)” rating in a report on Tuesday, August 11th. Wells Fargo & Company raised Sunstone Hotel Investors to a “strong-buy” rating in a report on Thursday, July 23rd. Finally, Truist Financial upped their target price on Sunstone Hotel Investors from $11.00 to $13.00 and gave the company a “hold” rating in a research report on Thursday, September 10th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Sunstone Hotel Investors presently has an average rating of “Hold” and a consensus target price of $11.43.

Sunstone Hotel Investors Stock Performance

The firm’s 50-day moving average is $11.39 and its 200 day moving average is $10.50. The stock has a market cap of $2.37 billion, a PE ratio of 57.98, a P/E/G ratio of 2.94 and a beta of 1.00. The company has a debt-to-equity ratio of 0.59, a quick ratio of 3.84 and a current ratio of 3.84.

Sunstone Hotel Investors (NYSE:SHO) last issued its quarterly earnings results on Thursday, August 6th. The real estate investment trust reported $0.14 earnings per share for the quarter, topping analysts’ consensus estimates of $0.08 by $0.06. Sunstone Hotel Investors had a net margin of 5.30% and a return on equity of 3.21%. The firm had revenue of $277.11 million during the quarter, compared to analysts’ expectations of $266.67 million. Sunstone Hotel Investors has set its FY 2026 guidance at 0.930-0.980 EPS. As a group, research analysts anticipate that Sunstone Hotel Investors, Inc. will post 0.99 EPS for the current year.

Sunstone Hotel Investors Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were issued a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date of this dividend was Wednesday, September 30th. Sunstone Hotel Investors’s dividend payout ratio is presently 163.64%.

Institutional Trading of Sunstone Hotel Investors

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in shares of Sunstone Hotel Investors in the 2nd quarter valued at approximately $402,089,000. Bank of America Corp DE lifted its holdings in shares of Sunstone Hotel Investors by 21.1% during 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 during the period. Legal & General Group Plc purchased a new position in Sunstone Hotel Investors in the 2nd quarter valued at $33,113,000. Dimensional Fund Advisors LP grew its position in Sunstone Hotel Investors by 2.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,591,239 shares of the real estate investment trust’s stock valued at $23,348,000 after buying an additional 54,242 shares during the last quarter. Finally, William Blair Investment Management LLC purchased a new position in Sunstone Hotel Investors in the 2nd quarter valued at $16,769,000. 99.37% of the stock is owned by hedge funds and other institutional investors.

Sunstone Hotel Investors Company Profile

Sunstone Hotel Investors, Inc (NYSE: SHO) is a real estate investment trust that owns and manages hotels in the United States. The company focuses primarily on upscale and upper-upscale properties located in major business, convention, and leisure destinations.

Sunstone’s portfolio includes full-service hotels operated under well-known hospitality brands as well as independent properties. Its hotels provide accommodations, restaurants and bars, meeting and event facilities, fitness amenities, and other services designed for business and leisure travelers.

The company has historically pursued ownership of institutional-quality lodging assets in markets with strong travel demand, including coastal gateway cities and popular resort and urban destinations.