Analysts Set Sunstone Hotel Investors, Inc. (NYSE:SHO) Target Price at $11.42

Shares of Sunstone Hotel Investors, Inc. (NYSE:SHO) have earned a consensus rating of “Moderate Buy” from the seven brokerages that are currently covering the company, MarketBeat Ratings reports. Four investment analysts have rated the stock with a hold recommendation, two have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year price target among brokers that have issued a report on the stock in the last year is $11.42.

Several research firms have recently issued reports on SHO. Wells Fargo & Company upgraded shares of Sunstone Hotel Investors from an “underweight” rating to an “equal weight” rating and set a $10.50 price objective on the stock in a research report on Friday, September 13th. StockNews.com downgraded shares of Sunstone Hotel Investors from a “hold” rating to a “sell” rating in a report on Thursday, August 1st. Finally, Wolfe Research raised shares of Sunstone Hotel Investors from a “peer perform” rating to an “outperform” rating and set a $12.00 price objective for the company in a report on Wednesday, July 10th.

Sunstone Hotel Investors Price Performance

NYSE:SHO opened at $10.27 on Friday. The business’s 50-day simple moving average is $10.29 and its two-hundred day simple moving average is $10.24. Sunstone Hotel Investors has a 52 week low of $9.07 and a 52 week high of $11.59. The stock has a market cap of $2.09 billion, a PE ratio of 12.52, a P/E/G ratio of 5.97 and a beta of 1.24. The company has a quick ratio of 3.75, a current ratio of 3.75 and a debt-to-equity ratio of 0.43.

Sunstone Hotel Investors (NYSE:SHO) last released its earnings results on Wednesday, August 7th. The real estate investment trust reported $0.11 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.27 by ($0.16). Sunstone Hotel Investors had a return on equity of 9.75% and a net margin of 19.51%. The business had revenue of $247.50 million for the quarter, compared to analysts’ expectations of $248.12 million. During the same quarter in the prior year, the business posted $0.33 EPS. The business’s revenue for the quarter was down 10.4% compared to the same quarter last year. As a group, analysts forecast that Sunstone Hotel Investors will post 0.85 EPS for the current fiscal year.

Sunstone Hotel Investors Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, October 15th. Investors of record on Monday, September 30th were given a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 3.51%. The ex-dividend date was Monday, September 30th. Sunstone Hotel Investors’s dividend payout ratio is presently 39.02%.

Institutional Trading of Sunstone Hotel Investors

Several hedge funds have recently made changes to their positions in SHO. Russell Investments Group Ltd. increased its stake in Sunstone Hotel Investors by 572.0% during the first quarter. Russell Investments Group Ltd. now owns 219,000 shares of the real estate investment trust’s stock worth $2,440,000 after acquiring an additional 186,413 shares during the last quarter. SG Americas Securities LLC purchased a new stake in Sunstone Hotel Investors during the 1st quarter valued at $1,657,000. Sumitomo Mitsui Trust Holdings Inc. raised its holdings in Sunstone Hotel Investors by 39.0% during the 1st quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 327,075 shares of the real estate investment trust’s stock valued at $3,644,000 after buying an additional 91,852 shares during the period. American Century Companies Inc. lifted its position in Sunstone Hotel Investors by 170.5% in the second quarter. American Century Companies Inc. now owns 199,580 shares of the real estate investment trust’s stock worth $2,088,000 after buying an additional 125,809 shares during the last quarter. Finally, Miller Howard Investments Inc. NY purchased a new position in Sunstone Hotel Investors during the second quarter worth $303,000. 99.37% of the stock is currently owned by hedge funds and other institutional investors.

Sunstone Hotel Investors Company Profile

Sunstone Hotel Investors, Inc is a lodging real estate investment trust ("REIT") that as of the date of this release owns 14 hotels comprised of 6,675 rooms, the majority of which are operated under nationally recognized brands. Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate.