Sunstone Hotel Investors (NYSE:SHO) Shares Gap Down After Analyst Downgrade

Sunstone Hotel Investors, Inc. (NYSE:SHO) gapped down prior to trading on Monday after Baird R W downgraded the stock from a strong-buy rating to a hold rating. 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 traded.

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

Institutional Investors Weigh In On Sunstone Hotel Investors

A number of institutional investors have recently made changes to their positions in SHO. Hantz Financial Services Inc. lifted its stake in Sunstone Hotel Investors by 951.7% in the second quarter. Hantz Financial Services Inc. now owns 3,008 shares of the real estate investment trust’s stock valued at $26,000 after buying an additional 2,722 shares during the period. Assetmark Inc. raised its position in shares of Sunstone Hotel Investors by 210.4% in the 2nd quarter. Assetmark Inc. now owns 3,635 shares of the real estate investment trust’s stock valued at $32,000 after acquiring an additional 2,464 shares during the period. GAMMA Investing LLC boosted its stake in Sunstone Hotel Investors by 33.0% during the 2nd quarter. GAMMA Investing LLC now owns 6,426 shares of the real estate investment trust’s stock worth $56,000 after acquiring an additional 1,595 shares during the last quarter. Blue Trust Inc. grew its holdings in Sunstone Hotel Investors by 46.8% during the second quarter. Blue Trust Inc. now owns 6,544 shares of the real estate investment trust’s stock valued at $57,000 after purchasing an additional 2,087 shares during the period. Finally, CWM LLC increased its stake in Sunstone Hotel Investors by 579.8% in the second quarter. CWM LLC now owns 8,029 shares of the real estate investment trust’s stock valued at $70,000 after purchasing an additional 6,848 shares in the last quarter. 99.37% of the stock is owned by institutional investors and hedge funds.

Sunstone Hotel Investors Trading Down 3.5%

The company’s fifty day simple moving average is $9.22 and its two-hundred day simple moving average is $9.19. The company has a market capitalization of $1.71 billion, a price-to-earnings ratio of 11.28, a price-to-earnings-growth ratio of 2.50 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 announced its quarterly earnings results on Friday, November 7th. The real estate investment trust reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.15 by $0.02. The company had revenue of $229.32 million during the quarter, compared to analyst estimates of $226.05 million. Sunstone Hotel Investors had a net margin of 1.94% and a return on equity of 1.04%. The firm’s revenue was up 1.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.18 EPS. Sunstone Hotel Investors has set its FY 2025 guidance at 0.800-0.870 EPS. Research analysts forecast 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 announced a quarterly dividend, which will be paid on Thursday, January 15th. Investors of record on Wednesday, December 31st will be paid a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a yield of 4.0%. The ex-dividend date of this dividend is Wednesday, December 31st.

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.