Sunstone Hotel Investors (NYSE:SHO) Hits New 52-Week High – Still a Buy?

Sunstone Hotel Investors, Inc. (NYSE:SHO) reached a new 52-week high on Wednesday . The company traded as high as $10.88 and last traded at $10.87, with a volume of 3267682 shares trading hands. The stock had previously closed at $10.62.

Wall Street Analyst Weigh In

SHO has been the topic of a number of analyst reports. Citigroup upped their target price on shares of Sunstone Hotel Investors from $9.50 to $10.00 and gave the company a “neutral” rating in a research note on Wednesday, May 6th. Zacks Research raised shares of Sunstone Hotel Investors from a “hold” rating to a “strong-buy” rating in a research note on Monday, May 18th. Wall Street Zen raised shares of Sunstone Hotel Investors from a “sell” rating to a “hold” rating in a research note on Saturday, February 28th. Truist Financial upped 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. Finally, LADENBURG THALM/SH SH initiated coverage on shares of Sunstone Hotel Investors in a research note on Thursday, March 26th. They issued a “hold” rating and a $10.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $10.00.

Sunstone Hotel Investors Stock Performance

The firm has a market cap of $2.02 billion, a P/E ratio of 98.83, a PEG ratio of 2.49 and a beta of 0.96. The stock’s 50 day moving average is $9.67 and its two-hundred day moving average is $9.37. The company has a debt-to-equity ratio of 0.58, a current ratio of 3.42 and a quick ratio of 3.42.

Sunstone Hotel Investors (NYSE:SHO) last issued its quarterly earnings data on Tuesday, May 5th. The real estate investment trust reported $0.27 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.05. The firm had revenue of $259.71 million for the quarter, compared to analysts’ expectations of $244.30 million. Sunstone Hotel Investors had a net margin of 3.84% and a return on equity of 2.27%. The company’s quarterly revenue was up 10.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.21 earnings per share. Sunstone Hotel Investors has set its FY 2026 guidance at 0.880-0.960 EPS. As a group, equities analysts predict that Sunstone Hotel Investors, Inc. will post 0.91 EPS for the current year.

Sunstone Hotel Investors Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th will be paid a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend is Tuesday, June 30th. Sunstone Hotel Investors’s dividend payout ratio is currently 327.27%.

Institutional Trading of Sunstone Hotel Investors

Several large investors have recently added to or reduced their stakes in SHO. Balyasny Asset Management L.P. bought a new stake in Sunstone Hotel Investors during the second quarter worth about $41,332,000. Woodline Partners LP bought a new stake in Sunstone Hotel Investors during the third quarter worth about $44,295,000. Alyeska Investment Group L.P. grew its stake in Sunstone Hotel Investors by 86.8% during the fourth quarter. Alyeska Investment Group L.P. now owns 5,369,789 shares of the real estate investment trust’s stock worth $48,006,000 after buying an additional 2,495,914 shares during the last quarter. SG Americas Securities LLC grew its stake in Sunstone Hotel Investors by 1,899.5% during the first quarter. SG Americas Securities LLC now owns 2,244,427 shares of the real estate investment trust’s stock worth $20,222,000 after buying an additional 2,132,180 shares during the last quarter. Finally, Bank of America Corp DE grew its stake in Sunstone Hotel Investors by 21.1% during the first quarter. Bank of America Corp DE now owns 10,099,538 shares of the real estate investment trust’s stock worth $90,997,000 after buying an additional 1,757,965 shares during the last quarter. 99.37% of the stock is owned by institutional investors.

About Sunstone Hotel Investors

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.