Sunstone Hotel Investors, Inc. (SHO) to Issue Quarterly Dividend of $0.09 on October 15th

Sunstone Hotel Investors, Inc. (NYSE:SHO) declared a quarterly dividend on Wednesday, August 7th, Wall Street Journal reports. Stockholders of record on Monday, September 30th will be paid a dividend of 0.09 per share by the real estate investment trust on Tuesday, October 15th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 3.40%. The ex-dividend date is Monday, September 30th.

Sunstone Hotel Investors has increased its dividend by an average of 68.7% annually over the last three years. Sunstone Hotel Investors has a dividend payout ratio of 128.6% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Sunstone Hotel Investors to earn $0.98 per share next year, which means the company should continue to be able to cover its $0.36 annual dividend with an expected future payout ratio of 36.7%.

Sunstone Hotel Investors Stock Performance

Shares of SHO opened at $10.60 on Friday. The company has a current ratio of 3.75, a quick ratio of 3.75 and a debt-to-equity ratio of 0.43. The firm has a market cap of $2.16 billion, a PE ratio of 11.78, a price-to-earnings-growth ratio of 4.57 and a beta of 1.25. The company’s 50 day simple moving average is $10.18 and its 200-day simple moving average is $10.36. Sunstone Hotel Investors has a 12-month low of $9.03 and a 12-month high of $11.59.

Sunstone Hotel Investors (NYSE:SHO) last announced its earnings results on Wednesday, August 7th. The real estate investment trust reported $0.11 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.27 by ($0.16). The business had revenue of $247.50 million for the quarter, compared to analysts’ expectations of $248.12 million. Sunstone Hotel Investors had a return on equity of 9.75% and a net margin of 19.51%. The business’s revenue was down 10.4% on a year-over-year basis. During the same quarter last year, the business posted $0.33 earnings per share. As a group, equities analysts predict that Sunstone Hotel Investors will post 0.88 EPS for the current year.

Analyst Upgrades and Downgrades

SHO has been the subject of several recent research reports. Wells Fargo & Company raised Sunstone Hotel Investors from an “underweight” rating to an “equal weight” rating and set a $10.50 price target for the company in a report on Friday, September 13th. Wolfe Research raised Sunstone Hotel Investors from a “peer perform” rating to an “outperform” rating and set a $12.00 price target for the company in a report on Wednesday, July 10th. Finally, StockNews.com downgraded Sunstone Hotel Investors from a “hold” rating to a “sell” rating in a report on Thursday, August 1st. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating, two have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $11.07.

Sunstone Hotel Investors Company Profile

Sunstone Hotel Investors, Inc is a lodging real estate investment trust ("REIT") that as of the date of this release owns 14 hotels comprised of 6,675 rooms, the majority of which are operated under nationally recognized brands. Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate.