Sunstone Hotel Investors (NYSE:SHO) Stock Rating Upgraded by Wall Street Zen

Sunstone Hotel Investors (NYSE:SHO) was upgraded by equities researchers at Wall Street Zen from a “sell” rating to a “hold” rating in a research report issued on Saturday.

A number of other equities research analysts have also recently weighed in on SHO. Zacks Research cut shares of Sunstone Hotel Investors from a “hold” rating to a “strong sell” rating in a research note on Wednesday, January 14th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Sunstone Hotel Investors in a report on Wednesday, January 21st. Wells Fargo & Company upgraded shares of Sunstone Hotel Investors from an “equal weight” rating to an “overweight” rating and raised their price objective for the company from $10.00 to $11.00 in a research note on Monday, January 5th. Finally, Robert W. Baird restated a “neutral” rating and issued a $10.00 target price on shares of Sunstone Hotel Investors in a research report on Monday, January 12th. Three equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, Sunstone Hotel Investors presently has a consensus rating of “Hold” and a consensus target price of $9.38.

Sunstone Hotel Investors Trading Down 4.1%

Shares of NYSE:SHO opened at $9.27 on Friday. The company has a quick ratio of 3.08, a current ratio of 3.08 and a debt-to-equity ratio of 0.55. The company’s 50-day moving average price is $9.15 and its 200 day moving average price is $9.24. The company has a market cap of $1.76 billion, a PE ratio of 11.78, a P/E/G ratio of 1.98 and a beta of 1.01. Sunstone Hotel Investors has a fifty-two week low of $7.45 and a fifty-two week high of $10.66.

Sunstone Hotel Investors (NYSE:SHO) last announced its quarterly earnings results on Friday, February 27th. The real estate investment trust reported $0.20 EPS for the quarter, beating the consensus estimate of $0.18 by $0.02. The company had revenue of $236.97 million for the quarter, compared to analyst estimates of $226.18 million. Sunstone Hotel Investors had a net margin of 1.94% and a return on equity of 1.04%. Sunstone Hotel Investors’s revenue was up 10.3% compared to the same quarter last year. During the same quarter last year, the business earned $0.16 earnings per share. Sunstone Hotel Investors has set its FY 2026 guidance at 0.810-0.940 EPS. Sell-side analysts anticipate that Sunstone Hotel Investors will post 0.79 earnings per share for the current year.

Institutional Investors Weigh In On Sunstone Hotel Investors

Hedge funds have recently bought and sold shares of the business. Hantz Financial Services Inc. increased its holdings in shares of Sunstone Hotel Investors by 951.7% in the 2nd quarter. Hantz Financial Services Inc. now owns 3,008 shares of the real estate investment trust’s stock valued at $26,000 after purchasing an additional 2,722 shares during the period. Kestra Advisory Services LLC acquired a new position in Sunstone Hotel Investors in the 4th quarter valued at approximately $26,000. Assetmark Inc. lifted its position in Sunstone Hotel Investors by 210.4% in the 2nd quarter. Assetmark Inc. now owns 3,635 shares of the real estate investment trust’s stock worth $32,000 after buying an additional 2,464 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its stake in shares of Sunstone Hotel Investors by 27.4% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,274 shares of the real estate investment trust’s stock valued at $47,000 after buying an additional 1,135 shares during the period. Finally, CWM LLC grew its holdings in shares of Sunstone Hotel Investors by 579.8% during the 2nd quarter. CWM LLC now owns 8,029 shares of the real estate investment trust’s stock valued at $70,000 after acquiring an additional 6,848 shares in the last quarter. 99.37% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Sunstone Hotel Investors

Here are the key news stories impacting Sunstone Hotel Investors this week:

• Positive Sentiment: Q4 results beat expectations — EPS/FFO and revenue came in ahead of consensus, showing year‑over‑year revenue growth. Beats reduce near‑term earnings risk and validate recent operating trends. Zacks: SHO Surpasses Q4 FFO and Revenue Estimates
• Positive Sentiment: Shareholder returns and buyback authorization — Sunstone said it returned over $170M to common holders in 2025 and reinstated a $500M repurchase authorization, supporting capital‑allocation upside for investors. PR Newswire: Sunstone 4Q/Full Year 2025 Results
• Positive Sentiment: Raised FY‑2026 EPS guidance — management provided 2026 EPS guidance of $0.810–$0.940 (above older consensus figures), and outlined RevPAR and FFO growth targets while saying capital deployment will remain disciplined. That upward guidance should support valuation if targets are met. Seeking Alpha: Sunstone Outlines 2026 Targets
• Neutral Sentiment: Earnings call color — management emphasized strong RevPAR recovery and operational performance but noted ongoing diligence on capital allocation and market conditions; read the full call for nuance on regional performance and assumptions. Seeking Alpha: Q4 2025 Earnings Call Transcript
• Negative Sentiment: Market reaction was negative — shares fell despite the beat and guidance; headlines noted the sell‑off, suggesting investors may have expected a stronger outlook, quicker execution on buybacks/dividends, or were taking profits after a run. Kalkine Media: Shares Fall After EPS Beat
• Negative Sentiment: Underlying margin/ROE remain modest — reported net margin (~1.9%) and ROE (~1.0%) are low, which could cap valuation multiple until returns on invested capital sustainably improve. SFGate: Q4 Earnings Snapshot

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.