Sunstone Hotel Investors (NYSE:SHO) Downgraded by Zacks Research to “Hold”

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

A number of other analysts have also weighed in on SHO. Wells Fargo & Company increased their target price on Sunstone Hotel Investors from $12.00 to $13.00 and gave the stock an “overweight” rating in a research note on Wednesday, June 24th. Citigroup raised their price target on shares of Sunstone Hotel Investors from $9.50 to $10.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. JPMorgan Chase & Co. lifted their price objective on shares of Sunstone Hotel Investors from $9.00 to $10.00 and gave the company an “underweight” rating in a report on Tuesday. Truist Financial boosted their price objective on shares of Sunstone Hotel Investors from $10.00 to $11.00 and gave the company a “hold” rating in a research report on Thursday, March 26th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Sunstone Hotel Investors in a research note on Friday, July 10th. Two investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $10.71.

Sunstone Hotel Investors Price Performance

Sunstone Hotel Investors stock opened at $11.74 on Thursday. The company has a current ratio of 3.42, a quick ratio of 3.42 and a debt-to-equity ratio of 0.58. The firm has a market capitalization of $2.19 billion, a PE ratio of 106.78, a price-to-earnings-growth ratio of 2.57 and a beta of 0.97. Sunstone Hotel Investors has a 12-month low of $8.48 and a 12-month high of $12.07. The firm has a 50-day moving average price of $11.35 and a 200-day moving average price of $10.06.

Sunstone Hotel Investors (NYSE:SHO) last announced its earnings results on Tuesday, May 5th. The real estate investment trust reported $0.27 earnings per share (EPS) for the quarter, beating the consensus estimate 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 during the quarter, compared to analyst estimates of $244.29 million. During the same quarter in the previous year, the business earned $0.21 earnings per share. The company’s revenue for the quarter 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. As a group, equities research analysts forecast that Sunstone Hotel Investors will post 0.89 EPS for the current year.

Sunstone Hotel Investors Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were given a dividend of $0.09 per share. The ex-dividend date of this dividend was 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 is presently 327.27%.

Insider Activity at Sunstone Hotel Investors

In related news, insider Robert C. Springer sold 89,631 shares of Sunstone Hotel Investors stock in a transaction dated Wednesday, June 24th. The stock was 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 directly owned 573,743 shares in the company, valued at $6,666,893.66. The trade was a 13.51% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Corporate insiders own 1.40% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Kestra Advisory Services LLC bought a new stake in shares of Sunstone Hotel Investors in the 4th quarter valued at about $26,000. North Star Investment Management Corp. purchased a new stake in shares of Sunstone Hotel Investors in the 1st quarter worth approximately $27,000. Mirae Asset Global Investments Co. Ltd. lifted its position in shares of Sunstone Hotel Investors by 27.4% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,274 shares of the real estate investment trust’s stock worth $47,000 after purchasing an additional 1,135 shares during the period. FIL Ltd boosted its stake in shares of Sunstone Hotel Investors by 57.2% during the fourth quarter. FIL Ltd now owns 9,010 shares of the real estate investment trust’s stock valued at $81,000 after purchasing an additional 3,280 shares in the last quarter. Finally, Cerity Partners LLC bought a new position in shares of Sunstone Hotel Investors during the second quarter valued at approximately $88,000. 99.37% of the stock is currently 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.