Zacks Investment Research downgraded shares of Sunstone Hotel Investors (NYSE:SHO) from a hold rating to a sell rating in a research note published on Wednesday morning.
According to Zacks, “Sunstone Hotel Investors, Inc. is a Southern California-based lodging real estate company that expects to qualify as a real estate investment trust for federal income tax purposes. The Company owns hotels primarily in the upper-upscale and upscale segments primarily operated under franchises owned nationally-recognized companies, such as Marriott, Hilton, InterContinental and Hyatt. “
Several other research firms have also weighed in on SHO. Barclays lowered shares of Sunstone Hotel Investors from an overweight rating to an equal weight rating and lowered their target price for the stock from $18.00 to $16.00 in a report on Tuesday, December 18th. Deutsche Bank reaffirmed a hold rating and issued a $16.00 target price on shares of Sunstone Hotel Investors in a report on Thursday, February 14th. Finally, Wells Fargo & Co lowered their target price on shares of Sunstone Hotel Investors from $17.50 to $16.00 and set a market perform rating on the stock in a report on Thursday, November 15th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and one has assigned a buy rating to the stock. The company presently has an average rating of Hold and a consensus price target of $16.83.
Shares of SHO traded down $0.07 during trading hours on Wednesday, hitting $14.98. The stock had a trading volume of 1,931,191 shares, compared to its average volume of 2,574,126. The company has a debt-to-equity ratio of 0.40, a quick ratio of 3.90 and a current ratio of 3.90. Sunstone Hotel Investors has a 52 week low of $12.70 and a 52 week high of $17.60. The firm has a market cap of $3.52 billion, a price-to-earnings ratio of 12.80, a PEG ratio of 2.40 and a beta of 1.14.
Sunstone Hotel Investors (NYSE:SHO) last posted its earnings results on Tuesday, February 12th. The real estate investment trust reported $0.29 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.27 by $0.02. Sunstone Hotel Investors had a net margin of 21.61% and a return on equity of 10.02%. The business had revenue of $280.85 million for the quarter, compared to analyst estimates of $275.14 million. During the same quarter in the prior year, the firm earned $0.28 EPS. The firm’s quarterly revenue was down 3.2% compared to the same quarter last year. As a group, sell-side analysts anticipate that Sunstone Hotel Investors will post 1.07 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Monday, April 15th. Shareholders of record on Friday, March 29th will be issued a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a yield of 1.34%. The ex-dividend date is Thursday, March 28th. Sunstone Hotel Investors’s dividend payout ratio is currently 184.62%.
Large investors have recently modified their holdings of the business. Nisa Investment Advisors LLC grew its holdings in Sunstone Hotel Investors by 6,800.0% during the 4th quarter. Nisa Investment Advisors LLC now owns 6,900 shares of the real estate investment trust’s stock worth $90,000 after acquiring an additional 6,800 shares during the last quarter. Hartford Investment Management Co. bought a new stake in Sunstone Hotel Investors during the 4th quarter worth about $131,000. Oppenheimer & Co. Inc. bought a new stake in Sunstone Hotel Investors during the 4th quarter worth about $135,000. Quantamental Technologies LLC bought a new stake in Sunstone Hotel Investors during the 4th quarter worth about $142,000. Finally, Campbell & CO Investment Adviser LLC bought a new stake in Sunstone Hotel Investors during the 3rd quarter worth about $164,000.
About Sunstone Hotel Investors
Sunstone Hotel Investors, Inc is a lodging real estate investment trust ("REIT") that as of November 5, 2018 has interests in 22 hotels comprised of 11,176 rooms. Sunstone's primary business is to acquire, own, asset manage and renovate hotels considered to be Long-Term Relevant Real Estate, the majority of which are operated under nationally recognized brands, such as Marriott, Hilton and Hyatt.
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