Sunstone Hotel Investors (NYSE:SHO) Reaches New 1-Year Low Following Weak Earnings

Shares of Sunstone Hotel Investors Inc (NYSE:SHO) hit a new 52-week low during mid-day trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $12.70 and last traded at $13.31, with a volume of 21639 shares trading hands. The stock had previously closed at $12.85.

The real estate investment trust reported $0.18 EPS for the quarter, missing the Zacks’ consensus estimate of $0.33 by ($0.15). The company had revenue of $302.90 million during the quarter, compared to the consensus estimate of $297.95 million. Sunstone Hotel Investors had a return on equity of 9.13% and a net margin of 20.15%. The company’s revenue for the quarter was down 4.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.37 earnings per share.

The business also recently declared a quarterly dividend, which was paid on Monday, July 15th. Stockholders of record on Friday, June 28th were issued a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a dividend yield of 1.50%. The ex-dividend date was Thursday, June 27th. Sunstone Hotel Investors’s payout ratio is presently 17.09%.

SHO has been the topic of a number of research analyst reports. ValuEngine cut shares of Sunstone Hotel Investors from a “hold” rating to a “sell” rating in a report on Friday, July 12th. Zacks Investment Research upgraded shares of Sunstone Hotel Investors from a “sell” rating to a “hold” rating in a report on Thursday. Bank of America cut shares of Sunstone Hotel Investors from a “neutral” rating to an “underperform” rating in a report on Wednesday, July 17th. Wedbush upgraded shares of Sunstone Hotel Investors from a “neutral” rating to an “outperform” rating in a report on Wednesday, June 26th. Finally, Wells Fargo & Co upgraded shares of Sunstone Hotel Investors from a “market perform” rating to an “outperform” rating and set a $15.00 price target on the stock in a report on Thursday, June 27th. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and two have assigned a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus target price of $15.67.

Large investors have recently added to or reduced their stakes in the stock. Oppenheimer Asset Management Inc. purchased a new stake in Sunstone Hotel Investors in the first quarter worth about $76,000. Pearl River Capital LLC purchased a new stake in Sunstone Hotel Investors in the first quarter worth about $144,000. Berman Capital Advisors LLC purchased a new stake in Sunstone Hotel Investors in the second quarter worth about $144,000. ARP Americas LP purchased a new stake in Sunstone Hotel Investors in the second quarter worth about $164,000. Finally, Nisa Investment Advisors LLC lifted its stake in Sunstone Hotel Investors by 82.2% in the first quarter. Nisa Investment Advisors LLC now owns 12,570 shares of the real estate investment trust’s stock worth $181,000 after acquiring an additional 5,670 shares during the period.

The business has a 50 day moving average price of $13.51. The firm has a market capitalization of $3.08 billion, a P/E ratio of 11.42, a PEG ratio of 2.07 and a beta of 1.07. The company has a debt-to-equity ratio of 0.42, a current ratio of 7.05 and a quick ratio of 7.05.

Sunstone Hotel Investors Company Profile (NYSE:SHO)

Sunstone Hotel Investors, Inc is a lodging real estate investment trust ("REIT") that as of February 12, 2019 has interests in 21 hotels comprised of 10,780 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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