Sunstone Hotel Investors, Inc. (NYSE:SHO) Receives $11.00 Consensus Target Price from Brokerages

Sunstone Hotel Investors, Inc. (NYSE:SHO) has earned a consensus rating of “Hold” from the eight analysts that are presently covering the firm, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, three have given a hold recommendation, two have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $11.00.

SHO has been the topic of several recent analyst reports. Robert W. Baird upgraded shares of Sunstone Hotel Investors from a “neutral” rating to an “outperform” rating and boosted their target price for the company from $11.00 to $12.00 in a report on Tuesday, May 28th. Baird R W upgraded shares of Sunstone Hotel Investors to a “strong-buy” rating in a report on Tuesday, May 28th. Truist Financial dropped their target price on shares of Sunstone Hotel Investors from $13.00 to $12.00 and set a “hold” rating on the stock in a report on Thursday, May 30th. Wolfe Research upgraded shares of Sunstone Hotel Investors from a “peer perform” rating to an “outperform” rating and set a $12.00 target price on the stock in a report on Wednesday, July 10th. Finally, StockNews.com downgraded shares of Sunstone Hotel Investors from a “hold” rating to a “sell” rating in a research note on Thursday, August 1st.

Sunstone Hotel Investors Price Performance

Shares of NYSE:SHO opened at $9.84 on Friday. The firm has a market cap of $2.00 billion, a PE ratio of 10.93, a price-to-earnings-growth ratio of 4.15 and a beta of 1.25. The firm’s fifty day moving average is $10.17 and its 200-day moving average is $10.43. The company has a debt-to-equity ratio of 0.43, a quick ratio of 3.75 and a current ratio of 3.75. Sunstone Hotel Investors has a 52 week low of $8.89 and a 52 week high of $11.59.

Sunstone Hotel Investors (NYSE:SHO) last released its earnings results on Wednesday, August 7th. The real estate investment trust reported $0.11 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.27 by ($0.16). The firm had revenue of $247.50 million during the quarter, compared to analyst estimates of $248.12 million. Sunstone Hotel Investors had a net margin of 19.51% and a return on equity of 9.75%. Sunstone Hotel Investors’s quarterly revenue was down 10.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.33 EPS. Sell-side analysts predict that Sunstone Hotel Investors will post 0.89 earnings per share for the current year.

Sunstone Hotel Investors Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 15th. Stockholders of record on Monday, September 30th will be given a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a dividend yield of 3.66%. The ex-dividend date is Monday, September 30th. Sunstone Hotel Investors’s payout ratio is presently 35.56%.

Institutional Investors Weigh In On Sunstone Hotel Investors

Several hedge funds and other institutional investors have recently made changes to their positions in SHO. Balyasny Asset Management L.P. increased its position in shares of Sunstone Hotel Investors by 313.8% during the fourth quarter. Balyasny Asset Management L.P. now owns 3,873,721 shares of the real estate investment trust’s stock worth $41,565,000 after acquiring an additional 2,937,603 shares in the last quarter. Millennium Management LLC increased its position in shares of Sunstone Hotel Investors by 368.0% during the second quarter. Millennium Management LLC now owns 1,767,636 shares of the real estate investment trust’s stock worth $18,489,000 after acquiring an additional 1,389,917 shares in the last quarter. Norges Bank bought a new stake in shares of Sunstone Hotel Investors during the fourth quarter worth about $14,656,000. Sumitomo Mitsui Trust Holdings Inc. increased its position in shares of Sunstone Hotel Investors by 318.0% during the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 1,367,061 shares of the real estate investment trust’s stock worth $14,299,000 after acquiring an additional 1,039,986 shares in the last quarter. Finally, The Manufacturers Life Insurance Company increased its position in shares of Sunstone Hotel Investors by 7.8% during the fourth quarter. The Manufacturers Life Insurance Company now owns 3,281,393 shares of the real estate investment trust’s stock worth $35,209,000 after acquiring an additional 236,708 shares in the last quarter. 99.37% of the stock is owned by institutional investors.

About Sunstone Hotel Investors

Sunstone Hotel Investors, Inc is a lodging real estate investment trust ("REIT") that as of the date of this release owns 14 hotels comprised of 6,675 rooms, the majority of which are operated under nationally recognized brands. Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate.