Zacks Research Downgrades Sunstone Hotel Investors (NYSE:SHO) to Strong Sell

Sunstone Hotel Investors (NYSE:SHO) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a research report issued on Wednesday,Zacks.com reports.

A number of other research analysts also recently commented on the company. Weiss Ratings reiterated a “hold (c-)” rating on shares of Sunstone Hotel Investors in a report on Wednesday, October 8th. Baird R W lowered shares of Sunstone Hotel Investors from a “strong-buy” rating to a “hold” rating in a research note on Monday. Wells Fargo & Company raised Sunstone Hotel Investors from an “equal weight” rating to an “overweight” rating and boosted their target price for the company from $10.00 to $11.00 in a report on Monday, January 5th. Wall Street Zen downgraded shares of Sunstone Hotel Investors from a “hold” rating to a “sell” rating in a research report on Sunday, November 16th. Finally, Robert W. Baird restated a “neutral” rating and set a $10.00 price target on shares of Sunstone Hotel Investors in a research note on Monday. Three investment analysts have rated the stock with a Buy rating, five have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, Sunstone Hotel Investors has a consensus rating of “Hold” and an average target price of $9.38.

Sunstone Hotel Investors Stock Performance

NYSE SHO opened at $9.10 on Wednesday. The company has a debt-to-equity ratio of 0.55, a current ratio of 3.08 and a quick ratio of 3.08. The company has a market cap of $1.73 billion, a P/E ratio of 11.01, a P/E/G ratio of 1.85 and a beta of 1.02. The stock has a 50-day moving average of $9.21 and a two-hundred day moving average of $9.19. Sunstone Hotel Investors has a 1-year low of $7.45 and a 1-year high of $11.84.

Sunstone Hotel Investors (NYSE:SHO) last announced its earnings results on Friday, November 7th. The real estate investment trust reported $0.17 earnings per share for the quarter, topping the consensus estimate of $0.15 by $0.02. Sunstone Hotel Investors had a net margin of 1.94% and a return on equity of 1.04%. The firm had revenue of $229.32 million for the quarter, compared to the consensus estimate of $226.05 million. During the same period in the prior year, the firm earned $0.18 EPS. The firm’s revenue for the quarter was up 1.3% on a year-over-year basis. Sunstone Hotel Investors has set its FY 2025 guidance at 0.800-0.870 EPS. As a group, analysts anticipate that Sunstone Hotel Investors will post 0.79 EPS for the current year.

Hedge Funds Weigh In On Sunstone Hotel Investors

Several large investors have recently bought and sold shares of the stock. Royal Bank of Canada boosted its holdings in shares of Sunstone Hotel Investors by 13.9% in the first quarter. Royal Bank of Canada now owns 69,862 shares of the real estate investment trust’s stock valued at $658,000 after acquiring an additional 8,504 shares in the last quarter. AQR Capital Management LLC lifted its position in Sunstone Hotel Investors by 1.6% in the first quarter. AQR Capital Management LLC now owns 83,864 shares of the real estate investment trust’s stock worth $789,000 after purchasing an additional 1,307 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Sunstone Hotel Investors by 3.1% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 119,358 shares of the real estate investment trust’s stock valued at $1,123,000 after purchasing an additional 3,607 shares in the last quarter. Goldman Sachs Group Inc. boosted its stake in Sunstone Hotel Investors by 132.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,787,519 shares of the real estate investment trust’s stock valued at $26,231,000 after purchasing an additional 1,589,258 shares in the last quarter. Finally, United Services Automobile Association acquired a new position in shares of Sunstone Hotel Investors during the 1st quarter valued at $120,000. Institutional investors and hedge funds own 99.37% of the company’s stock.

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.