Sunstone Hotel Investors (NYSE:SHO) Reaches New 1-Year High – Should You Buy?

Sunstone Hotel Investors, Inc. (NYSE:SHO)’s share price reached a new 52-week high on Thursday . The stock traded as high as $10.66 and last traded at $10.6650, with a volume of 2011769 shares changing hands. The stock had previously closed at $10.55.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the stock. Wells Fargo & Company cut their target price on shares of Sunstone Hotel Investors from $11.00 to $10.00 and set an “overweight” rating for the company in a research report on Tuesday, March 24th. Zacks Research raised Sunstone Hotel Investors from a “hold” rating to a “strong-buy” rating in a research note on Monday. Weiss Ratings reiterated a “hold (c-)” rating on shares of Sunstone Hotel Investors in a report on Wednesday, January 21st. Wall Street Zen upgraded Sunstone Hotel Investors from a “sell” rating to a “hold” rating in a research report on Saturday, February 28th. Finally, LADENBURG THALM/SH SH started coverage on Sunstone Hotel Investors in a report on Thursday, March 26th. They set a “hold” rating and a $10.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Sunstone Hotel Investors currently has a consensus rating of “Hold” and a consensus price target of $10.00.

Sunstone Hotel Investors Stock Performance

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 company’s fifty day moving average is $9.55 and its 200 day moving average is $9.32. The company has a market cap of $1.99 billion, a P/E ratio of 97.22, a price-to-earnings-growth ratio of 2.41 and a beta of 0.96.

Sunstone Hotel Investors (NYSE:SHO) last posted its quarterly earnings results 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. Sunstone Hotel Investors had a net margin of 3.84% and a return on equity of 2.27%. The business had revenue of $259.71 million during the quarter, compared to the consensus estimate of $244.30 million. During the same period in the previous year, the firm posted $0.21 earnings per share. The firm’s revenue for the quarter was up 10.9% on a year-over-year basis. 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 earnings per share for the current fiscal year.

Sunstone Hotel Investors Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be issued a dividend of $0.09 per share. The ex-dividend date is Tuesday, June 30th. This represents a $0.36 annualized dividend and a yield of 3.4%. Sunstone Hotel Investors’s dividend payout ratio is currently 327.27%.

Hedge Funds Weigh In On Sunstone Hotel Investors

A number of large investors have recently bought and sold shares of the stock. Kestra Advisory Services LLC purchased a new stake in shares of Sunstone Hotel Investors during the fourth quarter valued at approximately $26,000. North Star Investment Management Corp. purchased a new position in shares of Sunstone Hotel Investors in the first quarter worth $27,000. Hantz Financial Services Inc. raised its holdings in Sunstone Hotel Investors by 62.4% during the 3rd quarter. Hantz Financial Services Inc. now owns 4,884 shares of the real estate investment trust’s stock valued at $46,000 after buying an additional 1,876 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its position in Sunstone Hotel Investors by 27.4% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,274 shares of the real estate investment trust’s stock valued at $47,000 after buying an additional 1,135 shares during the period. Finally, FIL Ltd boosted its position in Sunstone Hotel Investors by 57.2% during the 4th quarter. FIL Ltd now owns 9,010 shares of the real estate investment trust’s stock valued at $81,000 after buying an additional 3,280 shares during the period. 99.37% of the stock is owned by hedge funds and other 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.