Sunstone Hotel Investors (NYSE:SHO) Reaches New 12-Month High – Time to Buy?

Shares of Sunstone Hotel Investors, Inc. (NYSE:SHO) hit a new 52-week high during trading on Thursday . The stock traded as high as $11.70 and last traded at $11.6450, with a volume of 235744 shares changing hands. The stock had previously closed at $11.43.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Wells Fargo & Company raised their price target on shares of Sunstone Hotel Investors from $10.00 to $12.00 and gave the company an “overweight” rating in a research report on Monday, June 1st. Truist Financial raised their price target on shares of Sunstone Hotel Investors from $10.00 to $11.00 and gave the company a “hold” rating in a research report on Thursday, March 26th. Zacks Research raised shares of Sunstone Hotel Investors from a “hold” rating to a “strong-buy” rating in a research report on Monday, May 18th. Wall Street Zen raised shares of Sunstone Hotel Investors from a “sell” rating to a “hold” rating in a research report on Saturday, February 28th. Finally, Citigroup raised their price target on shares of Sunstone Hotel Investors from $9.50 to $10.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $10.29.

Sunstone Hotel Investors Trading Up 0.3%

The firm has a market capitalization of $2.19 billion, a PE ratio of 106.69, a PEG ratio of 2.62 and a beta of 0.98. The company’s 50-day moving average price is $10.25 and its 200-day moving average price is $9.55. The company has a debt-to-equity ratio of 0.58, a quick ratio of 3.42 and a current ratio of 3.42.

Sunstone Hotel Investors (NYSE:SHO) last released its quarterly earnings data on Tuesday, May 5th. The real estate investment trust reported $0.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.22 by $0.05. Sunstone Hotel Investors had a net margin of 3.84% and a return on equity of 2.27%. The business had revenue of $259.71 million during the quarter, compared to analysts’ expectations of $244.30 million. During the same period in the previous year, the company earned $0.21 EPS. The company’s revenue for the quarter was up 10.9% on a year-over-year basis. Sunstone Hotel Investors has set its FY 2026 guidance at 0.880-0.960 EPS. On average, sell-side analysts expect that Sunstone Hotel Investors, Inc. will post 0.91 earnings per share for the current year.

Sunstone Hotel Investors Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be paid a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a yield of 3.1%. The ex-dividend date is Tuesday, June 30th. Sunstone Hotel Investors’s dividend payout ratio (DPR) is currently 327.27%.

Institutional Investors Weigh In On Sunstone Hotel Investors

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Bank of America Corp DE raised its stake in Sunstone Hotel Investors by 21.1% during the 1st quarter. Bank of America Corp DE now owns 10,099,538 shares of the real estate investment trust’s stock worth $90,997,000 after acquiring an additional 1,757,965 shares in the last quarter. Amundi raised its stake in Sunstone Hotel Investors by 29.8% during the 1st quarter. Amundi now owns 132,464 shares of the real estate investment trust’s stock worth $1,194,000 after acquiring an additional 30,384 shares in the last quarter. California State Teachers Retirement System raised its stake in Sunstone Hotel Investors by 33.1% during the 1st quarter. California State Teachers Retirement System now owns 228,623 shares of the real estate investment trust’s stock worth $2,060,000 after acquiring an additional 56,837 shares in the last quarter. Royal Bank of Canada raised its stake in Sunstone Hotel Investors by 1.2% during the 1st quarter. Royal Bank of Canada now owns 103,294 shares of the real estate investment trust’s stock worth $931,000 after acquiring an additional 1,204 shares in the last quarter. Finally, Quantinno Capital Management LP raised its stake in Sunstone Hotel Investors by 109.5% during the 1st quarter. Quantinno Capital Management LP now owns 61,399 shares of the real estate investment trust’s stock worth $553,000 after acquiring an additional 32,087 shares in the last quarter. 99.37% of the stock is currently owned by institutional investors and hedge funds.

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.