Sunstone Hotel Investors (SHO) Upgraded to “Hold” by Zacks Investment Research

Zacks Investment Research upgraded shares of Sunstone Hotel Investors (NYSE:SHO) from a sell rating to a hold rating in a research note published on Friday 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. “

Separately, Deutsche Bank set a $16.00 price objective on Sunstone Hotel Investors and gave the stock a hold rating in a research note on Tuesday. One analyst has rated the stock with a sell rating, eight have given a hold rating and two have issued a buy rating to the company. Sunstone Hotel Investors presently has a consensus rating of Hold and an average price target of $16.83.

NYSE:SHO traded down $0.14 during trading hours on Friday, reaching $15.04. The stock had a trading volume of 1,181,063 shares, compared to its average volume of 2,077,606. The company has a debt-to-equity ratio of 0.39, a current ratio of 6.36 and a quick ratio of 5.61. Sunstone Hotel Investors has a 52 week low of $13.67 and a 52 week high of $17.60. The company has a market cap of $3.48 billion, a price-to-earnings ratio of 13.25, a PEG ratio of 2.89 and a beta of 1.09.

Sunstone Hotel Investors (NYSE:SHO) last released its quarterly earnings data on Monday, November 5th. The real estate investment trust reported $0.38 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.28 by $0.10. Sunstone Hotel Investors had a return on equity of 7.84% and a net margin of 16.56%. The business had revenue of $289.30 million for the quarter, compared to the consensus estimate of $291.19 million. During the same quarter in the previous year, the company posted $0.31 EPS. The company’s revenue was down 4.8% compared to the same quarter last year. As a group, analysts anticipate that Sunstone Hotel Investors will post 1.14 EPS for the current year.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Bank of America Corp DE increased its position in shares of Sunstone Hotel Investors by 25.7% during the 2nd quarter. Bank of America Corp DE now owns 635,622 shares of the real estate investment trust’s stock valued at $10,564,000 after purchasing an additional 129,932 shares during the last quarter. Rothschild Asset Management Inc. increased its position in shares of Sunstone Hotel Investors by 34.4% during the 2nd quarter. Rothschild Asset Management Inc. now owns 965,942 shares of the real estate investment trust’s stock valued at $16,054,000 after purchasing an additional 247,186 shares during the last quarter. Sumitomo Mitsui Trust Holdings Inc. increased its position in shares of Sunstone Hotel Investors by 3.2% during the 2nd quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 225,868 shares of the real estate investment trust’s stock valued at $3,754,000 after purchasing an additional 6,926 shares during the last quarter. Russell Investments Group Ltd. increased its position in shares of Sunstone Hotel Investors by 17.5% during the 2nd quarter. Russell Investments Group Ltd. now owns 2,607,790 shares of the real estate investment trust’s stock valued at $43,291,000 after purchasing an additional 389,019 shares during the last quarter. Finally, Citadel Advisors LLC increased its position in shares of Sunstone Hotel Investors by 697.2% during the 2nd quarter. Citadel Advisors LLC now owns 221,291 shares of the real estate investment trust’s stock valued at $3,678,000 after purchasing an additional 193,534 shares during the last quarter.

Sunstone Hotel Investors Company Profile

Sunstone Hotel Investors, Inc is a lodging real estate investment trust ("REIT") that as of July 30, 2018 has interests in 24 hotels comprised of 12,046 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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