Sunstone Hotel Investors (NYSE:SHO) Shares Gap Down – Should You Sell?

Sunstone Hotel Investors, Inc. (NYSE:SHO)’s share price gapped down prior to trading on Monday . The stock had previously closed at $9.42, but opened at $9.10. Sunstone Hotel Investors shares last traded at $9.2670, with a volume of 115,110 shares trading hands.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on SHO shares. Robert W. Baird restated a “neutral” rating and set a $10.00 price objective on shares of Sunstone Hotel Investors in a research note on Monday. Weiss Ratings restated a “hold (c-)” rating on shares of Sunstone Hotel Investors in a research note on Wednesday, October 8th. Wells Fargo & Company upgraded shares of Sunstone Hotel Investors from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $10.00 to $11.00 in a report on Monday, January 5th. Finally, Wall Street Zen lowered shares of Sunstone Hotel Investors from a “hold” rating to a “sell” rating in a research note on Sunday, November 16th. Three equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Sunstone Hotel Investors currently has an average rating of “Hold” and a consensus price target of $9.38.

Sunstone Hotel Investors Stock Performance

The stock has a 50 day moving average price of $9.20 and a two-hundred day moving average price of $9.18. The company has a market cap of $1.76 billion, a P/E ratio of 11.33, a price-to-earnings-growth ratio of 2.55 and a beta of 1.02. The company has a quick ratio of 3.08, a current ratio of 3.08 and a debt-to-equity ratio of 0.55.

Sunstone Hotel Investors (NYSE:SHO) last issued its quarterly earnings data on Friday, November 7th. The real estate investment trust reported $0.17 EPS for the quarter, beating analysts’ consensus estimates of $0.15 by $0.02. The firm had revenue of $229.32 million for the quarter, compared to analyst estimates of $226.05 million. Sunstone Hotel Investors had a return on equity of 1.04% and a net margin of 1.94%.The company’s revenue for the quarter was up 1.3% on a year-over-year basis. During the same period in the prior year, the firm posted $0.18 EPS. Sunstone Hotel Investors has set its FY 2025 guidance at 0.800-0.870 EPS. On average, research analysts predict that Sunstone Hotel Investors, Inc. will post 0.79 earnings per share for the current fiscal year.

Sunstone Hotel Investors Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 15th. Shareholders of record on Wednesday, December 31st will be issued a $0.09 dividend. The ex-dividend date of this dividend is Wednesday, December 31st. This represents a $0.36 dividend on an annualized basis and a yield of 3.9%.

Institutional Investors Weigh In On Sunstone Hotel Investors

A number of hedge funds and other institutional investors have recently made changes to their positions in SHO. Heritage Family Offices LLP grew its position in Sunstone Hotel Investors by 9.9% during the fourth quarter. Heritage Family Offices LLP now owns 21,473 shares of the real estate investment trust’s stock worth $192,000 after buying an additional 1,938 shares in the last quarter. SG Americas Securities LLC grew its holdings in shares of Sunstone Hotel Investors by 24.6% during the 4th quarter. SG Americas Securities LLC now owns 112,247 shares of the real estate investment trust’s stock worth $1,003,000 after purchasing an additional 22,172 shares in the last quarter. Davis Selected Advisers grew its holdings in shares of Sunstone Hotel Investors by 13.5% during the 3rd quarter. Davis Selected Advisers now owns 1,311,800 shares of the real estate investment trust’s stock worth $12,292,000 after purchasing an additional 156,320 shares in the last quarter. CIBC Bancorp USA Inc. bought a new position in shares of Sunstone Hotel Investors in the third quarter worth $190,000. Finally, CANADA LIFE ASSURANCE Co raised its stake in Sunstone Hotel Investors by 0.7% in the third quarter. CANADA LIFE ASSURANCE Co now owns 456,344 shares of the real estate investment trust’s stock valued at $4,361,000 after purchasing an additional 3,390 shares in the last quarter. 99.37% of the stock is currently owned by institutional investors and hedge funds.

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.