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

Sunstone Hotel Investors, Inc. (NYSE:SHO)’s share price hit a new 52-week high during trading on Wednesday . The company traded as high as $11.90 and last traded at $11.8450, with a volume of 2169785 shares. The stock had previously closed at $11.78.

Wall Street Analysts Forecast Growth

SHO has been the topic of several analyst reports. 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 note on Monday, June 1st. Wall Street Zen upgraded shares of Sunstone Hotel Investors from a “sell” rating to a “hold” rating in a research report on Saturday, February 28th. Truist Financial lifted their price objective on shares of Sunstone Hotel Investors from $10.00 to $11.00 and gave the stock a “hold” rating in a research note on Thursday, March 26th. Zacks Research upgraded shares of Sunstone Hotel Investors from a “hold” rating to a “strong-buy” rating in a report on Monday, May 18th. Finally, LADENBURG THALM/SH SH started coverage on shares of Sunstone Hotel Investors in a research note on Thursday, March 26th. They issued a “hold” rating and a $10.00 target price for the company. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Sunstone Hotel Investors currently has an average rating of “Hold” and a consensus target price of $10.29.

Sunstone Hotel Investors Stock Up 1.3%

The company has a market capitalization of $2.22 billion, a P/E ratio of 108.15, a P/E/G ratio of 2.63 and a beta of 0.98. 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 has a fifty day simple moving average of $10.48 and a 200-day simple moving average of $9.62.

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 for the quarter, beating the consensus estimate of $0.22 by $0.05. Sunstone Hotel Investors had a return on equity of 2.27% and a net margin of 3.84%.The business had revenue of $259.71 million for the quarter, compared to analysts’ expectations of $244.29 million. During the same quarter in the previous year, the business posted $0.21 EPS. Sunstone Hotel Investors’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, equities research analysts expect that Sunstone Hotel Investors, Inc. will post 0.91 EPS for the current fiscal year.

Sunstone Hotel Investors Announces Dividend

The business 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 of this dividend is Tuesday, June 30th. This represents a $0.36 annualized dividend and a dividend yield of 3.0%. Sunstone Hotel Investors’s dividend payout ratio is currently 327.27%.

Institutional Investors Weigh In On Sunstone Hotel Investors

Institutional investors have recently added to or reduced their stakes in the stock. Royal Bank of Canada increased its holdings in Sunstone Hotel Investors by 13.9% during the 1st quarter. Royal Bank of Canada now owns 69,862 shares of the real estate investment trust’s stock worth $658,000 after purchasing an additional 8,504 shares in the last quarter. AQR Capital Management LLC lifted its holdings in shares of Sunstone Hotel Investors by 1.6% in the first quarter. AQR Capital Management LLC now owns 83,864 shares of the real estate investment trust’s stock valued at $789,000 after purchasing an additional 1,307 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Sunstone Hotel Investors by 3.1% in the first 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 in the last quarter. Goldman Sachs Group Inc. boosted its position in shares of 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 buying an additional 1,589,258 shares during the period. Finally, United Services Automobile Association acquired a new position in shares of Sunstone Hotel Investors during the first quarter worth about $120,000. 99.37% of the stock is owned by institutional investors.

About Sunstone Hotel Investors

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.