Sunstone Hotel Investors, Inc. (NYSE:SHO) Sees Large Drop in Short Interest

Sunstone Hotel Investors, Inc. (NYSE:SHO) was the target of a large decrease in short interest in December. As of December 31st, there was short interest totaling 9,384,371 shares, a decrease of 17.6% from the December 15th total of 11,386,007 shares. Currently, 5.0% of the company’s shares are short sold. Based on an average trading volume of 1,633,189 shares, the days-to-cover ratio is currently 5.7 days. Based on an average trading volume of 1,633,189 shares, the days-to-cover ratio is currently 5.7 days. Currently, 5.0% of the company’s shares are short sold.

Sunstone Hotel Investors Stock Performance

Shares of SHO stock traded down $0.11 during midday trading on Tuesday, hitting $9.04. 858,373 shares of the company were exchanged, compared to its average volume of 1,579,675. The company has a debt-to-equity ratio of 0.55, a quick ratio of 3.08 and a current ratio of 3.08. The firm’s 50 day moving average price is $9.19 and its two-hundred day moving average price is $9.19. Sunstone Hotel Investors has a 52 week low of $7.45 and a 52 week high of $11.84. The firm has a market capitalization of $1.72 billion, a P/E ratio of 11.15, a PEG ratio of 1.87 and a beta of 1.02.

Sunstone Hotel Investors (NYSE:SHO) last posted its quarterly earnings results on Friday, November 7th. The real estate investment trust reported $0.17 earnings per share (EPS) 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 business had revenue of $229.32 million for the quarter, compared to analyst estimates of $226.05 million. During the same quarter last year, the business posted $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, equities research analysts anticipate that Sunstone Hotel Investors will post 0.79 earnings per share for the current year.

Sunstone Hotel Investors Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, January 15th. Investors of record on Wednesday, December 31st were paid a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a yield of 4.0%. The ex-dividend date was Wednesday, December 31st.

Wall Street Analysts Forecast Growth

SHO has been the topic of several analyst reports. Zacks Research lowered shares of Sunstone Hotel Investors from a “hold” rating to a “strong sell” rating in a research note on Wednesday, January 14th. Robert W. Baird restated a “neutral” rating and set a $10.00 price objective on shares of Sunstone Hotel Investors in a research report on Monday, January 12th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Sunstone Hotel Investors in a report on Wednesday, October 8th. Wall Street Zen lowered shares of Sunstone Hotel Investors from a “hold” rating to a “sell” rating in a report on Sunday, November 16th. Finally, Baird R W cut Sunstone Hotel Investors from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. Three research analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $9.38.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Heritage Family Offices LLP grew its stake in shares of Sunstone Hotel Investors by 9.9% in the fourth quarter. Heritage Family Offices LLP now owns 21,473 shares of the real estate investment trust’s stock worth $192,000 after purchasing an additional 1,938 shares during the last quarter. SG Americas Securities LLC boosted its position in shares of Sunstone Hotel Investors by 24.6% during the fourth quarter. SG Americas Securities LLC now owns 112,247 shares of the real estate investment trust’s stock valued at $1,003,000 after buying an additional 22,172 shares during the last quarter. Davis Selected Advisers raised its stake in 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 valued at $12,292,000 after buying an additional 156,320 shares during the last quarter. CIBC Bancorp USA Inc. purchased a new stake in Sunstone Hotel Investors in the third quarter worth about $190,000. Finally, CANADA LIFE ASSURANCE Co grew its position in shares of Sunstone Hotel Investors by 0.7% during the third quarter. CANADA LIFE ASSURANCE Co now owns 456,344 shares of the real estate investment trust’s stock worth $4,361,000 after purchasing an additional 3,390 shares in the last quarter. 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.