The stock of Sunstone Hotel Investors Inc. (NYSE:SHO) increased by $0.2 on Tuesday to finish at $9.18, up 2.23 percent. The last five days have seen an average of 2,405,340 shares of common stock traded. 12 times new highs were reached in the current year, with a fall of -$0.48. The average number of shares traded over the last 20 days was 2,587,980, while the average volume over the last 50 days totaled 2,152,664.
SHO stock dropped -9.91% since last month. On 08/25/23, the company’s shares reached a one-month low of $8.61. The stock touched a high of $11.62 on 02/02/23, after rallying from a low of $8.60 in 52 weeks. The price of SHO stock has declined by -4.97% or -$0.48 this year, reaching a new high 12 times. Still, the stock price is down -21.00% from the 52-week high.
Valuation Metrics
Sunstone Hotel Investors Inc. (SHO) has a trailing price-to-earnings (P/E) ratio of 21.91. Beta for the stock is 1.30. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 1.91, the price-to-book (PB) ratio of 1.04, and the price-to-cash flow ratio of 8.53.
Company paid $0.07 per share in dividends, an increase of 40.0% from $0.05 last year.
Financial Health
For the three months ended June 29, Sunstone Hotel Investors Inc.’s quick ratio was 1.50, while its current ratio was 1.50, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.45, and the total debt to equity ratio is 0.45. As far as profitability goes, gross margin for the trailing twelve months is 62.40% percent. Sunstone Hotel Investors Inc.’s EBITDA margin for the year ended June 29 was 25.17%, whereas its operating margin stood at 14.00% for the same period. Based on annual data, it had gross profit of $592.62 million and revenue of $912.05 million.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. SHO’s return on assets (ROA) during the last 12 months has been 2.80%. There was a 3.60% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 4.80%.
Earnings Surprise
According to Sunstone Hotel Investors Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $276.11 million, while revenues rose by 8.99% to $243.44 million. It was predicted that Sunstone Hotel Investors Inc.’s quarterly earnings would be $0.19, but it ended up being $0.14, beating the consensus by 35.70%. EBITDA was $84.83 million for the quarter. At the end of Sunstone Hotel Investors Inc.’s most recent quarter ended June 29, its liabilities totaled 985.09 million, while its total debt was $833.84 million. Equity owned by shareholders amounts to $207.19 million.
Technical Picture
Here’s a quick look at Sunstone Hotel Investors Inc.’s (SHO) price momentum from a technical perspective. As of 29 August, the RSI 9-day stood at 55.34%, suggesting the stock is Neutral, with a 28.57% historical volatility rate.
The stochastic %K and %D were 33.24% and 21.25% respectively, while the average true range (ATR) was 0.26. Based on the 14-day stochastic reading of 58.76%, the RSI (14) reading is 47.87%. On the 9-day MACD Oscillator, the stock is at 0.12, and the 14-day reading is at 0.02.
Analyst Ratings
In its most recent analyst report, Morgan Stanley raised its rating on Sunstone Hotel Investors Inc. (NYSE: SHO) to an Equal-weight. Prior to this, analysts firm rated the stock as an Underweight. Analysts have assigned Sunstone Hotel Investors Inc. (SHO) an Underweight rating. SHO is a stock that is recommended for selling by 4 brokerage firms, while 8 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 0 rates it overweight and 0 others recommend it as a buy.
What is SHO’s price target for the next 12 months?
The current consensus forecast for the stock is between $8.00 and $11.50, with a median target price of $10.00. In analyzing these forecasts, the average price target given by analysts for Sunstone Hotel Investors Inc. (SHO) is $9.88.
