Sunstone Hotel Investors (NYSE:SHO) Hits New 12-Month High – Here’s Why

Sunstone Hotel Investors, Inc. (NYSE:SHO) shares reached a new 52-week high during trading on Thursday . The stock traded as high as $11.70 and last traded at $11.6450, with a volume of 235744 shares. The stock had previously closed at $11.43.

Analyst Upgrades and Downgrades

Several research firms have commented on SHO. Citigroup raised their price objective on Sunstone Hotel Investors from $9.50 to $10.00 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. Wells Fargo & Company raised their price objective on Sunstone Hotel Investors from $10.00 to $12.00 and gave the stock an “overweight” rating in a report on Monday, June 1st. Wall Street Zen upgraded Sunstone Hotel Investors from a “sell” rating to a “hold” rating in a report on Saturday, February 28th. Zacks Research upgraded Sunstone Hotel Investors from a “hold” rating to a “strong-buy” rating in a report on Monday, May 18th. Finally, Truist Financial raised their price objective on Sunstone Hotel Investors from $10.00 to $11.00 and gave the stock a “hold” rating in a report 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 assigned a Sell rating to the company. According to MarketBeat, Sunstone Hotel Investors presently has an average rating of “Hold” and an average target price of $10.29.

Sunstone Hotel Investors Price Performance

The stock has a fifty day moving average price of $10.14 and a 200-day moving average price of $9.51. The firm has a market capitalization of $2.16 billion, a PE ratio of 105.51, a P/E/G ratio of 2.59 and a beta of 0.98. The company has a debt-to-equity ratio of 0.58, a quick ratio of 3.42 and a current ratio of 3.42.

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

Sunstone Hotel Investors Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th will be issued a $0.09 dividend. The ex-dividend date is Tuesday, June 30th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 3.1%. Sunstone Hotel Investors’s dividend payout ratio (DPR) is currently 327.27%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. State Street Corp boosted its position in shares of Sunstone Hotel Investors by 4.9% in the 2nd quarter. State Street Corp now owns 12,179,383 shares of the real estate investment trust’s stock worth $106,784,000 after purchasing an additional 571,619 shares in the last quarter. Bank of America Corp DE grew its stake in Sunstone Hotel Investors by 21.1% during the 1st quarter. Bank of America Corp DE now owns 10,099,538 shares of the real estate investment trust’s stock valued at $90,997,000 after purchasing an additional 1,757,965 shares during the last quarter. Alyeska Investment Group L.P. grew its stake in Sunstone Hotel Investors by 86.8% during the 4th quarter. Alyeska Investment Group L.P. now owns 5,369,789 shares of the real estate investment trust’s stock valued at $48,006,000 after purchasing an additional 2,495,914 shares during the last quarter. Balyasny Asset Management L.P. purchased a new stake in Sunstone Hotel Investors during the 2nd quarter valued at about $41,332,000. Finally, Woodline Partners LP purchased a new stake in Sunstone Hotel Investors during the 3rd quarter valued at about $44,295,000. 99.37% of the stock is currently owned by hedge funds and other institutional investors.

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.