Technicals Say Sunstone Hotel Investors Inc. (SHO) Is Worth Holding


As of Friday close, Sunstone Hotel Investors Inc.’s (NYSE:SHO) stock was down -$0.31, moving down -3.23 percent to $9.30. The average number of shares traded per day over the past five days has been 3,004,740 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.44 fall in that time frame. In the last twenty days, the average volume was 2,557,140, while in the previous 50 days, it was 2,121,796.

Since last month, SHO stock retreated -14.05%. Shares of the company fell to $9.22 on 03/17/23, the lowest level in the past month. A 52-week high of $12.72 was reached on 02/02/23 after having rallying from a 52-week low of $9.19. Since the beginning of this year, SHO’s stock price has dropped by -3.73% or -$0.36, and marked a new high 12 times. However, the stock has declined by -26.89% since its 52-week high.

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SHO stock investors should be aware that Sunstone Hotel Investors Inc. (SHO) stock had its last reported insider trading activity 288 days ago on Jun 03. Springer Robert C, the President and CIO of the company, disposed of 1 shares for $12.35 on Jun 03. It resulted in a $12 divestment by the insider.

Valuation Metrics

Right now, Sunstone Hotel Investors Inc. (SHO) has a P/E ratio of about 27.11. The stock’s beta is 1.32. Besides these, the trailing price-to-sales (P/S) ratio of 2.16, the price-to-book (PB) ratio of 1.10.

The latest dividend of $0.05 per share was paid out, remained unchanged from last year’s $0.05. On Monday February 17 2020, a $0.52 dividend decrease was announced.

Financial Health

In the three months ended December 30, Sunstone Hotel Investors Inc.’s quick ratio stood at 0.60, while its current ratio was 0.60, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 0.33, and the total debt-to-equity ratio was 0.45. On the profitability front, the trailing twelve-month gross margin is 62.40% percent. In the year ended December 30, operating margins totaled 10.40%. Based on annual data, SHO earned $592.62 million in gross profit and brought in $912.05 million in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 3.60%. Return on equity (ROE) for the past 12 months was 4.00%.

In Sunstone Hotel Investors Inc.’s quarter-end financial report for December 30, it reported total debt of $590.65 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. SHO’s revenue rose 31.42% to $244.31 million during the quarter, while net income inched up to $244.14 million. While analysts expected Sunstone Hotel Investors Inc. to report $0.02 quarterly earnings, the actual figure was $0.07 per share. During the quarter, the company generated $64.31 million in EBITDA. The liabilities of Sunstone Hotel Investors Inc. were 997.86 million at the end of its most recent quarter ended December 30, and its total debt was $831.69 million. The value of shareholders’ equity is $208.17 million.

Technical Picture

This quick technical analysis looks at Sunstone Hotel Investors Inc.’s (SHO) price momentum. With a historical volatility rate of 28.57%, the RSI 9-day stood at 21.75% on 17 March.

With respect to its five-day moving average, the current Sunstone Hotel Investors Inc. price is down by -4.52% percent or -$0.44. At present, SHO shares trade -9.71% below its 20-day simple moving average and -13.49% percent below its 100-day simple moving average. However, the stock is currently trading approximately -3.02% below its SMA50 and -22.31% below its SMA200.

Stochastic coefficient K was 11.85% and Stochastic coefficient D was 16.32%, while ATR was 0.35. Given the Stochastic reading of 4.91% for the 14-day period, the RSI (14) reading has been calculated as 29.48%. As of today, the MACD Oscillator reading stands at -0.30, while the 14-day reading stands at -0.57.

Analyst Ratings

Sunstone Hotel Investors Inc. downgraded its rating on Sunstone Hotel Investors Inc. (NYSE: SHO) to an Underperform in a note to investors on December 09, 2022. The analysts firm previously had a Mkt perform rating on the stock.Sunstone Hotel Investors Inc. (SHO) has been rated Underweight by analysts. According to 4 brokerage firms, SHO is a sell, and 7 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 0 analysts rate Sunstone Hotel Investors Inc. stock as buy, with 0 recommending it as overweight.

With a median target price of $11.00, the current consensus forecast for the stock is $9.00 – $12.00. Based on these forecasts, analysts predict Sunstone Hotel Investors Inc. (SHO) will achieve an average price target of $10.73.


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