Sunstone Hotel Investors Inc (NYSE:SHO) finished Thursday with an addition of $0.16 to close at $9.50, an upside of 1.71 percent. An average of 2,629,080 shares of common stock have been traded in the last five days. There was a gain of $0.48 in the past week, and it reached a new high 13 times over the past 12 months. The last 20 days have seen an average of 2,302,595 shares traded, while the 50-day average volume stands at 2,401,228.
SHO stock has increased by 3.49% in the last month. The company shares reached their 1-month lowest point of $8.78 on 09/07/23. With the stock rallying to its 52-week high on 02/02/23, shares of the company touched a low of $8.60 and a high of $11.38 in 52 weeks. It has reached a new high 12 times so far this year and lost -1.66% or -$0.16 in price. In spite of this, the price is down -16.48% from the 52-week high.
Valuation Metrics
Sunstone Hotel Investors Inc (SHO) has a trailing price-to-earnings (P/E) ratio of 22.62. The stock’s beta is 1.26. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.95, the price-to-book (PB) ratio at 1.08, and the price-to-cash flow ratio at 17.80.
The company has a payout ratio of 29.29%. The company’s most recent quarterly dividend payment was $0.07 a share, representing a up of 40.0% from $0.05 last year.
Financial Health
Further, the company has a long term debt to equity ratio of 0.39 and a total debt to equity ratio of 0.40 for the quarter ending June 29. Sunstone Hotel Investors Inc’s EBITDA margin for the year ending June 29 is 25.17%, while its operating margin for the same period stands at 13.61%. Its gross profit as reported stood at $592.62 million compared to revenue of $912.05 million.
Earnings Surprise
For the three-month period that ended June 29, Sunstone Hotel Investors Inc had $812.77 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $46.85 million in the quarter, while revenues of $24.86 million were grew 6.49%. The analyst consensus anticipated Sunstone Hotel Investors Inc’s latest quarter earnings to come in at $0.14 per share, but it turned out to be $0.19, a 35.70% surprise. For the quarter, EBITDA amounted to $84.83 million. Shareholders own equity worth $207.19 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Sunstone Hotel Investors Inc (SHO) price momentum. RSI 9-day as of the close on 28 September was 66.42%, suggesting the stock is Neutral, with historical volatility in this time frame at 23.49%.
As of today, SHO’s price is $9.19 +5.32% or $0.48 from its 5-day moving average. SHO is currently trading +4.97% higher than its 20-day SMA and -7.05% lower than its 100-day SMA. However, the stock’s current price level is -5.85% below the SMA50 and -8.12% below the SMA200.
The stochastic %K and %D were 71.63% and 57.20%, respectively, and the average true range (ATR) was 0.25. With the 14-day stochastic at 87.14% and the average true range at 0.25, the RSI (14) stands at 60.31%. The stock has reached 0.12 on the 9-day MACD Oscillator while the 14-day reading was at 0.11.
Analyst Ratings
Wolfe Research launched coverage on Sunstone Hotel Investors Inc (NYSE: SHO) in its analyst report released on September 28, 2023. The firm assigned the stock a Peer perform rating. The consensus rating for Sunstone Hotel Investors Inc (SHO) among analysts is Underweight. According to current brokerage recommendations, 4 brokerage firms advise that investors sell SHO, while 9 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 0 others rate it as a “buy”.
What is SHO’s price target for the next 12 months?
Analysts predict a range of price targets between $8.00 and $11.50, with a median target of $10.00. Taking a look at these predictions, the average price target given by analysts for Sunstone Hotel Investors Inc (SHO) stock is $9.79.
