Sunstone Hotel Investors, Inc. (NYSE:SHO) Declares Quarterly Dividend of $0.09

Sunstone Hotel Investors, Inc. (NYSE:SHO) declared a quarterly dividend on Thursday, November 6th. Investors of record on Wednesday, December 31st will be given a dividend of 0.09 per share by the real estate investment trust on Thursday, January 15th. This represents a c) dividend on an annualized basis and a yield of 3.8%. The ex-dividend date is Wednesday, December 31st.

Sunstone Hotel Investors has decreased its dividend by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 2 years. Sunstone Hotel Investors has a dividend payout ratio of 189.5% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Sunstone Hotel Investors to earn $0.97 per share next year, which means the company should continue to be able to cover its $0.36 annual dividend with an expected future payout ratio of 37.1%.

Sunstone Hotel Investors Stock Performance

Sunstone Hotel Investors stock traded up $0.17 during midday trading on Friday, hitting $9.45. The company’s stock had a trading volume of 2,272,516 shares, compared to its average volume of 2,234,598. The company has a debt-to-equity ratio of 0.51, a current ratio of 2.73 and a quick ratio of 2.73. The company has a market cap of $1.79 billion, a price-to-earnings ratio of 472.49, a PEG ratio of 5.32 and a beta of 1.28. Sunstone Hotel Investors has a 1-year low of $7.45 and a 1-year high of $12.41. The company has a 50-day moving average price of $9.34 and a two-hundred day moving average price of $9.00.

Sunstone Hotel Investors (NYSE:SHO) last announced its earnings results on Friday, November 7th. The real estate investment trust reported $0.17 EPS for the quarter, topping the consensus estimate of $0.15 by $0.02. Sunstone Hotel Investors had a net margin of 2.15% and a return on equity of 1.12%. The company had revenue of $229.32 million for the quarter, compared to analysts’ expectations of $226.05 million. During the same period last year, the firm earned $0.18 earnings per share. The business’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, sell-side analysts predict that Sunstone Hotel Investors will post 0.79 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on SHO shares. Wall Street Zen upgraded Sunstone Hotel Investors from a “sell” rating to a “hold” rating in a research report on Saturday, October 25th. Evercore ISI upped their price objective on shares of Sunstone Hotel Investors from $10.00 to $11.00 and gave the stock an “outperform” rating in a research report on Monday, July 28th. Truist Financial decreased their target price on shares of Sunstone Hotel Investors from $11.00 to $10.00 and set a “hold” rating on the stock in a report on Wednesday, September 3rd. Weiss Ratings restated a “hold (c-)” rating on shares of Sunstone Hotel Investors in a research report on Wednesday, October 8th. Finally, Wells Fargo & Company upgraded shares of Sunstone Hotel Investors to a “hold” rating in a research report on Friday, October 3rd. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $8.93.

About Sunstone Hotel Investors

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.