Sunstone Hotel Investors (NYSE:SHO) Hits New 1-Year High – Should You Buy?

Sunstone Hotel Investors, Inc. (NYSE:SHO)’s stock price reached a new 52-week high on Friday . The stock traded as high as $11.58 and last traded at $11.5750, with a volume of 289820 shares trading hands. The stock had previously closed at $11.50.

Analysts Set New Price Targets

Several equities analysts have commented on SHO shares. Wells Fargo & Company increased their target price on Sunstone Hotel Investors from $10.00 to $12.00 and gave the company an “overweight” rating in a research report on Monday, June 1st. Wall Street Zen raised Sunstone Hotel Investors from a “sell” rating to a “hold” rating in a research note on Saturday, February 28th. Citigroup raised their target price on Sunstone Hotel Investors from $9.50 to $10.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. LADENBURG THALM/SH SH assumed coverage on Sunstone Hotel Investors in a research note on Thursday, March 26th. They issued a “hold” rating and a $10.00 price objective for the company. Finally, Zacks Research raised Sunstone Hotel Investors from a “hold” rating to a “strong-buy” rating in a research report on Monday, May 18th. One investment analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $10.29.

Sunstone Hotel Investors Stock Down 0.2%

The company has a debt-to-equity ratio of 0.58, a quick ratio of 3.42 and a current ratio of 3.42. The firm has a market capitalization of $2.14 billion, a P/E ratio of 104.33, a PEG ratio of 2.69 and a beta of 0.98. The stock has a 50 day moving average of $10.00 and a 200-day moving average of $9.46.

Sunstone Hotel Investors (NYSE:SHO) last posted its earnings results on Tuesday, May 5th. The real estate investment trust reported $0.27 earnings per share for the quarter, beating analysts’ consensus estimates of $0.22 by $0.05. The business had revenue of $259.71 million during the quarter, compared to analyst estimates of $244.30 million. Sunstone Hotel Investors had a return on equity of 2.27% and a net margin of 3.84%.The company’s quarterly revenue was up 10.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.21 EPS. Sunstone Hotel Investors has set its FY 2026 guidance at 0.880-0.960 EPS. Research analysts predict that Sunstone Hotel Investors, Inc. will post 0.91 earnings per share for the current fiscal year.

Sunstone Hotel Investors Announces Dividend

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

Hedge Funds Weigh In On Sunstone Hotel Investors

Several institutional investors have recently modified their holdings of SHO. Kestra Advisory Services LLC purchased a new stake in Sunstone Hotel Investors during the 4th quarter valued at about $26,000. North Star Investment Management Corp. purchased a new stake in Sunstone Hotel Investors in the 1st quarter worth approximately $27,000. Hantz Financial Services Inc. lifted its stake in shares of Sunstone Hotel Investors by 62.4% in the 3rd quarter. Hantz Financial Services Inc. now owns 4,884 shares of the real estate investment trust’s stock valued at $46,000 after purchasing an additional 1,876 shares during the period. Mirae Asset Global Investments Co. Ltd. lifted its stake in shares of Sunstone Hotel Investors by 27.4% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,274 shares of the real estate investment trust’s stock valued at $47,000 after purchasing an additional 1,135 shares during the period. Finally, FIL Ltd lifted its stake in shares of Sunstone Hotel Investors by 57.2% in the 4th quarter. FIL Ltd now owns 9,010 shares of the real estate investment trust’s stock valued at $81,000 after purchasing an additional 3,280 shares during the period. 99.37% of the stock is currently owned by institutional investors.

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.