Sunstone Hotel Investors (NYSE:SHO) Cut to “Hold” at Zacks Research

Zacks Research downgraded shares of Sunstone Hotel Investors (NYSE:SHO) from a strong-buy rating to a hold rating in a research note issued to investors on Thursday morning,Zacks.com reports.

A number of other equities research analysts have also issued reports on the stock. Truist Financial lifted their target price on shares of Sunstone Hotel Investors from $10.00 to $11.00 and gave the company a “hold” rating in a research note on Thursday, March 26th. LADENBURG THALM/SH SH assumed coverage on Sunstone Hotel Investors in a report on Thursday, March 26th. They set a “hold” rating and a $10.00 price objective for the company. Wall Street Zen raised Sunstone Hotel Investors from a “hold” rating to a “buy” rating in a research report on Saturday, July 18th. Weiss Ratings restated a “hold (c)” rating on shares of Sunstone Hotel Investors in a research note on Friday, July 10th. Finally, Citigroup upped their target price on Sunstone Hotel Investors from $9.50 to $10.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 6th. Two investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $10.71.

Sunstone Hotel Investors Stock Up 0.8%

NYSE:SHO opened at $11.74 on Thursday. The business’s fifty day moving average price is $11.35 and its 200 day moving average price is $10.06. The firm has a market capitalization of $2.19 billion, a price-to-earnings ratio of 106.78, a PEG ratio of 2.59 and a beta of 0.97. The company has a current ratio of 3.42, a quick ratio of 3.42 and a debt-to-equity ratio of 0.58. Sunstone Hotel Investors has a 1-year low of $8.48 and a 1-year high of $12.07.

Sunstone Hotel Investors (NYSE:SHO) last released its earnings results on Tuesday, May 5th. The real estate investment trust reported $0.27 earnings per share for the quarter, beating the consensus estimate of $0.22 by $0.05. The company had revenue of $259.71 million for the quarter, compared to analysts’ expectations of $244.29 million. Sunstone Hotel Investors had a return on equity of 2.27% and a net margin of 3.84%.The business’s revenue for the quarter was up 10.9% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.21 EPS. Sunstone Hotel Investors has set its FY 2026 guidance at 0.880-0.960 EPS. On average, sell-side analysts forecast that Sunstone Hotel Investors will post 0.89 earnings per share for the current fiscal year.

Sunstone Hotel Investors Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were paid a dividend of $0.09 per share. The ex-dividend date was Tuesday, June 30th. This represents a $0.36 annualized dividend and a dividend yield of 3.1%. Sunstone Hotel Investors’s dividend payout ratio is 327.27%.

Insider Buying and Selling at Sunstone Hotel Investors

In related news, insider Robert C. Springer sold 89,631 shares of Sunstone Hotel Investors stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $11.62, for a total value of $1,041,512.22. Following the completion of the sale, the insider owned 573,743 shares of the company’s stock, valued at approximately $6,666,893.66. The trade was a 13.51% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 1.40% of the company’s stock.

Institutional Trading of Sunstone Hotel Investors

Several large investors have recently modified their holdings of SHO. Tributary Capital Management LLC raised its stake in shares of Sunstone Hotel Investors by 14.2% in the fourth quarter. Tributary Capital Management LLC now owns 1,537,256 shares of the real estate investment trust’s stock valued at $13,743,000 after purchasing an additional 191,403 shares in the last quarter. Legal & General Group Plc grew its stake in shares of Sunstone Hotel Investors by 12.9% in the 4th quarter. Legal & General Group Plc now owns 3,408,676 shares of the real estate investment trust’s stock valued at $30,474,000 after purchasing an additional 389,210 shares during the period. Centersquare Investment Management LLC grew its stake in shares of Sunstone Hotel Investors by 8.5% in the 4th quarter. Centersquare Investment Management LLC now owns 1,517,366 shares of the real estate investment trust’s stock valued at $13,565,000 after purchasing an additional 119,290 shares during the period. Hsbc Holdings PLC raised its holdings in shares of Sunstone Hotel Investors by 23.1% in the 4th quarter. Hsbc Holdings PLC now owns 598,257 shares of the real estate investment trust’s stock worth $5,353,000 after buying an additional 112,332 shares in the last quarter. Finally, M&T Bank Corp acquired a new position in shares of Sunstone Hotel Investors in the 4th quarter worth approximately $635,000. 99.37% of the stock is owned by institutional investors.

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.