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

Sunstone Hotel Investors, Inc. (NYSE:SHO)’s stock price reached a new 52-week high during trading on Monday . The company traded as high as $12.14 and last traded at $11.8140, with a volume of 859 shares traded. The stock had previously closed at $11.92.

Analyst Ratings Changes

SHO has been the subject of several research analyst reports. Zacks Research raised Sunstone Hotel Investors from a “hold” rating to a “strong-buy” rating in a report on Monday, May 18th. Truist Financial lifted their target price on Sunstone Hotel Investors from $10.00 to $11.00 and gave the stock a “hold” rating in a research report on Thursday, March 26th. LADENBURG THALM/SH SH initiated coverage on Sunstone Hotel Investors in a report on Thursday, March 26th. They issued a “hold” rating and a $10.00 price target for the company. Wells Fargo & Company upped their price target on Sunstone Hotel Investors from $12.00 to $13.00 and gave the company an “overweight” rating in a research report on Wednesday, June 24th. Finally, Citigroup raised their price objective 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. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $10.83.

Sunstone Hotel Investors Trading Down 1.7%

The company has a quick ratio of 3.42, a current ratio of 3.42 and a debt-to-equity ratio of 0.58. The firm’s 50 day moving average is $10.82 and its two-hundred day moving average is $9.77. The stock has a market cap of $2.13 billion, a price-to-earnings ratio of 104.17, a price-to-earnings-growth ratio of 2.61 and a beta of 0.98.

Sunstone Hotel Investors (NYSE:SHO) last issued its earnings results on Tuesday, May 5th. The real estate investment trust reported $0.27 EPS for the quarter, beating analysts’ consensus estimates of $0.22 by $0.05. The company had revenue of $259.71 million during the quarter, compared to the consensus estimate of $244.29 million. Sunstone Hotel Investors had a return on equity of 2.27% and a net margin of 3.84%.Sunstone Hotel Investors’s quarterly revenue was up 10.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.21 earnings per share. Sunstone Hotel Investors has set its FY 2026 guidance at 0.880-0.960 EPS. Equities analysts anticipate that Sunstone Hotel Investors, Inc. will post 0.91 EPS for the current year.

Sunstone Hotel Investors Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Investors 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 dividend on an annualized basis and a yield of 3.1%. Sunstone Hotel Investors’s payout ratio is currently 327.27%.

Insider Buying and Selling

In related news, insider Robert C. Springer sold 89,631 shares of the company’s stock in a transaction on Wednesday, June 24th. The stock was sold at an average price of $11.62, for a total transaction of $1,041,512.22. Following the completion of the transaction, the insider directly owned 573,743 shares in the company, valued at $6,666,893.66. This represents a 13.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Sunstone Hotel Investors

Hedge funds and other institutional investors have recently modified their holdings of the company. Royal Bank of Canada grew its position in shares of Sunstone Hotel Investors by 13.9% during the first quarter. Royal Bank of Canada now owns 69,862 shares of the real estate investment trust’s stock worth $658,000 after acquiring an additional 8,504 shares during the last quarter. AQR Capital Management LLC increased its holdings in shares of Sunstone Hotel Investors by 1.6% in the 1st quarter. AQR Capital Management LLC now owns 83,864 shares of the real estate investment trust’s stock worth $789,000 after acquiring an additional 1,307 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Sunstone Hotel Investors by 3.1% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 119,358 shares of the real estate investment trust’s stock valued at $1,123,000 after purchasing an additional 3,607 shares during the last quarter. Goldman Sachs Group Inc. lifted its position in Sunstone Hotel Investors by 132.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,787,519 shares of the real estate investment trust’s stock valued at $26,231,000 after purchasing an additional 1,589,258 shares during the last quarter. Finally, United Services Automobile Association acquired a new position in Sunstone Hotel Investors during the 1st quarter valued at about $120,000. Institutional investors and hedge funds own 99.37% of the company’s stock.

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.