Sunstone Hotel Investors (NYSE:SHO) Posts Quarterly Earnings Results, Beats Expectations 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 for the quarter, topping the consensus estimate of $0.15 by $0.02, Briefing.com reports. The firm had revenue of $229.32 million for the quarter, compared to the consensus estimate of $226.05 million. Sunstone Hotel Investors had a net margin of 2.15% and a return on equity of 1.12%. The firm’s revenue for the quarter was up 1.3% on a year-over-year basis. During the same period in the prior 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 traded up $0.17 on Friday, hitting $9.45. The company’s stock had a trading volume of 2,272,516 shares, compared to its average volume of 2,234,598. The stock has a 50 day moving average of $9.34 and a 200-day moving average of $9.01. The company has a market capitalization of $1.79 billion, a price-to-earnings ratio of 472.49, a price-to-earnings-growth ratio of 5.32 and a beta of 1.28. Sunstone Hotel Investors has a 12-month low of $7.45 and a 12-month high of $12.41. The company has a debt-to-equity ratio of 0.51, a current ratio of 2.73 and a quick ratio of 2.73.

Sunstone Hotel Investors Announces Dividend

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

Analyst Ratings Changes

SHO has been the topic of a number of recent research reports. Evercore ISI lifted their target price on shares of Sunstone Hotel Investors from $10.00 to $11.00 and gave the company an “outperform” rating in a report on Monday, July 28th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Sunstone Hotel Investors in a report on Wednesday, October 8th. Truist Financial lowered their price target on Sunstone Hotel Investors from $11.00 to $10.00 and set a “hold” rating on the stock in a report on Wednesday, September 3rd. Wells Fargo & Company upgraded Sunstone Hotel Investors to a “hold” rating in a research report on Friday, October 3rd. Finally, Wall Street Zen cut Sunstone Hotel Investors from a “hold” rating to a “sell” rating in a research report on Saturday. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $8.93.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Royal Bank of Canada boosted its position 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 during the period. AQR Capital Management LLC grew its holdings in Sunstone Hotel Investors by 1.6% during the 1st 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. increased its position in shares of Sunstone Hotel Investors by 3.1% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 119,358 shares of the real estate investment trust’s stock worth $1,123,000 after acquiring an additional 3,607 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in Sunstone Hotel Investors by 132.6% during 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 in the last quarter. Finally, United Services Automobile Association acquired a new stake in shares of Sunstone Hotel Investors during the first quarter worth approximately $120,000. 99.37% of the stock is currently owned by institutional investors and hedge funds.

Sunstone Hotel Investors Company Profile

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.