Sunstone Hotel Investors (NYSE:SHO) Stock Price Down 4.2% – What’s Next?

Sunstone Hotel Investors, Inc. (NYSE:SHO) shares were down 4.2% during mid-day trading on Wednesday . The company traded as low as $11.25 and last traded at $11.25. Approximately 526,679 shares changed hands during mid-day trading, a decline of 75% from the average daily volume of 2,126,467 shares. The stock had previously closed at $11.74.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. Jefferies Financial Group raised their price target on shares of Sunstone Hotel Investors from $10.00 to $12.00 and gave the stock a “hold” rating in a research report on Thursday, January 2nd. Morgan Stanley reaffirmed an “underweight” rating and set a $10.00 price target on shares of Sunstone Hotel Investors in a research report on Tuesday, January 14th. Finally, Wells Fargo & Company upped their price objective on Sunstone Hotel Investors from $11.00 to $13.00 and gave the company an “equal weight” rating in a research note on Monday, December 9th. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating, two have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat, Sunstone Hotel Investors presently has a consensus rating of “Hold” and a consensus target price of $11.86.

Sunstone Hotel Investors Trading Down 2.5 %

The company has a debt-to-equity ratio of 0.44, a current ratio of 2.98 and a quick ratio of 2.98. The firm’s fifty day moving average price is $11.54 and its 200-day moving average price is $10.72. The company has a market cap of $2.30 billion, a price-to-earnings ratio of 15.06, a P/E/G ratio of 5.06 and a beta of 1.21.

Sunstone Hotel Investors (NYSE:SHO) last posted its earnings results on Tuesday, November 12th. The real estate investment trust reported $0.18 EPS for the quarter, missing the consensus estimate of $0.20 by ($0.02). Sunstone Hotel Investors had a net margin of 18.61% and a return on equity of 9.04%. The business had revenue of $226.40 million during the quarter, compared to analyst estimates of $224.61 million. During the same quarter in the prior year, the business earned $0.23 earnings per share. The firm’s revenue was down 8.6% compared to the same quarter last year. On average, equities analysts expect that Sunstone Hotel Investors, Inc. will post 0.79 EPS for the current fiscal year.

Sunstone Hotel Investors Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, January 15th. Investors of record on Tuesday, December 31st were paid a dividend of $0.09 per share. The ex-dividend date was Tuesday, December 31st. This represents a $0.36 dividend on an annualized basis and a dividend yield of 3.15%. Sunstone Hotel Investors’s dividend payout ratio is presently 44.74%.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Millennium Management LLC boosted its position in shares of Sunstone Hotel Investors by 368.0% in the 2nd quarter. Millennium Management LLC now owns 1,767,636 shares of the real estate investment trust’s stock valued at $18,489,000 after purchasing an additional 1,389,917 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in Sunstone Hotel Investors by 460.0% during the third quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,414,372 shares of the real estate investment trust’s stock valued at $14,596,000 after purchasing an additional 1,161,792 shares during the last quarter. JPMorgan Chase & Co. lifted its holdings in shares of Sunstone Hotel Investors by 31.0% during the 3rd quarter. JPMorgan Chase & Co. now owns 4,775,533 shares of the real estate investment trust’s stock valued at $49,284,000 after buying an additional 1,130,558 shares during the last quarter. Heitman Real Estate Securities LLC increased its stake in shares of Sunstone Hotel Investors by 976.5% during the 3rd quarter. Heitman Real Estate Securities LLC now owns 1,238,002 shares of the real estate investment trust’s stock worth $12,776,000 after purchasing an additional 1,123,001 shares during the last quarter. Finally, NFJ Investment Group LLC bought a new position in Sunstone Hotel Investors during the third quarter valued at about $3,220,000. 99.37% of the stock is owned by institutional investors and hedge funds.

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.