Sunstone Hotel Investors (NYSE:SHO) Releases Earnings Results, Beats Estimates By $0.02 EPS

Sunstone Hotel Investors (NYSE:SHO) announced its earnings results on Friday. The real estate investment trust reported $0.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.15 by $0.02, Briefing.com reports. The business had revenue of $229.32 million for the quarter, compared to analyst estimates of $226.05 million. Sunstone Hotel Investors had a return on equity of 1.12% and a net margin of 2.15%.Sunstone Hotel Investors’s revenue for the quarter was up 1.3% compared to the same quarter last year. During the same quarter last year, the firm earned $0.18 EPS. Sunstone Hotel Investors updated its FY 2025 guidance to 0.800-0.870 EPS.

Sunstone Hotel Investors Price Performance

Shares of NYSE SHO opened at $9.45 on Friday. The business’s 50 day moving average price is $9.34 and its two-hundred day moving average price is $9.01. The company has a market cap of $1.79 billion, a PE ratio of 472.49, a price-to-earnings-growth ratio of 5.32 and a beta of 1.28. The company has a quick ratio of 2.73, a current ratio of 2.73 and a debt-to-equity ratio of 0.51. Sunstone Hotel Investors has a twelve month low of $7.45 and a twelve month high of $12.41.

Sunstone Hotel Investors Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, January 15th. Investors of record on Wednesday, December 31st will be paid a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 3.8%. The ex-dividend date is Wednesday, December 31st. Sunstone Hotel Investors’s dividend payout ratio (DPR) is 1,800.00%.

Wall Street Analysts Forecast Growth

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in SHO. State Street Corp increased its holdings in shares of Sunstone Hotel Investors by 4.9% during the 2nd quarter. State Street Corp now owns 12,179,383 shares of the real estate investment trust’s stock worth $106,784,000 after acquiring an additional 571,619 shares during the last quarter. Bank of America Corp DE lifted its holdings in Sunstone Hotel Investors by 13.6% during the 2nd quarter. Bank of America Corp DE now owns 7,240,157 shares of the real estate investment trust’s stock valued at $62,845,000 after purchasing an additional 867,137 shares during the last quarter. Balyasny Asset Management L.P. acquired a new stake in Sunstone Hotel Investors during the 2nd quarter valued at $41,332,000. Goldman Sachs Group Inc. boosted its position in Sunstone Hotel Investors by 132.6% during the first quarter. Goldman Sachs Group Inc. now owns 2,787,519 shares of the real estate investment trust’s stock worth $26,231,000 after purchasing an additional 1,589,258 shares during the period. Finally, Qube Research & Technologies Ltd increased its holdings in shares of Sunstone Hotel Investors by 17.2% in the second quarter. Qube Research & Technologies Ltd now owns 1,594,536 shares of the real estate investment trust’s stock valued at $13,841,000 after purchasing an additional 233,498 shares during the last quarter. 99.37% of the stock is currently owned by institutional investors.

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.