Sunstone Hotel Investors Inc (NYSE: SHO)’s stock price has increased by 0.89 compared to its previous closing price of 10.13. However, the company has seen a -0.97% decrease in its stock price over the last five trading sessions. seekingalpha.com reported 2024-10-28 that Sunstone Hotel Investors’ preferred shares are attractive due to a robust balance sheet and excellent dividend coverage, despite a recent AFFO guidance reduction. The preferred dividends are well-covered, with less than 10% of adjusted AFFO needed, ensuring financial stability even with seasonality impacts. Series H preferred shares offer a higher current yield (6.74%) compared to Series I (6.65%), making them slightly more attractive, though both are ‘hold’ at best.
Is It Worth Investing in Sunstone Hotel Investors Inc (NYSE: SHO) Right Now?
The price-to-earnings ratio for Sunstone Hotel Investors Inc (NYSE: SHO) is above average at 12.48x, Company’s 36-month beta value is 1.25.Analysts have differing opinions on the stock, with 2 analysts rating it as a “buy,” 1 as “overweight,” 8 as “hold,” and 4 as “sell.”
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The public float for SHO is 201.13M, and currently, short sellers hold a 7.50% ratio of that floaft. The average trading volume of SHO on November 05, 2024 was 2.34M shares.
SHO’s Market Performance
SHO stock saw a decrease of -0.97% in the past week, with a monthly decline of -2.39% and a quarterly a decrease of 5.80%. The volatility ratio for the week is 1.94%, and the volatility levels for the last 30 days are 1.94% for Sunstone Hotel Investors Inc (SHO). The simple moving average for the past 20 days is -0.43% for SHO’s stock, with a -2.19% simple moving average for the past 200 days.
Analysts’ Opinion of SHO
Many brokerage firms have already submitted their reports for SHO stocks, with Wells Fargo repeating the rating for SHO by listing it as a “Equal Weight.” The predicted price for SHO in the upcoming period, according to Wells Fargo is $10.50 based on the research report published on September 13, 2024 of the current year 2024.
Wolfe Research, on the other hand, stated in their research note that they expect to see SHO reach a price target of $12. The rating they have provided for SHO stocks is “Outperform” according to the report published on July 10th, 2024.
Robert W. Baird gave a rating of “Outperform” to SHO, setting the target price at $12 in the report published on May 28th of the current year.
SHO Trading at -0.55% from the 50-Day Moving Average
After a stumble in the market that brought SHO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -11.82% of loss for the given period.
Volatility was left at 1.94%, however, over the last 30 days, the volatility rate increased by 1.94%, as shares surge +0.20% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -2.01% lower at present.
During the last 5 trading sessions, SHO fell by -0.97%, which changed the moving average for the period of 200-days by -4.84% in comparison to the 20-day moving average, which settled at $10.26. In addition, Sunstone Hotel Investors Inc saw -4.75% in overturn over a single year, with a tendency to cut further losses.
Stock Fundamentals for SHO
Current profitability levels for the company are sitting at:
- 0.07 for the present operating margin
- 0.31 for the gross margin
The net margin for Sunstone Hotel Investors Inc stands at 0.19. The total capital return value is set at 0.03. Equity return is now at value 8.51, with 5.82 for asset returns.
Based on Sunstone Hotel Investors Inc (SHO), the company’s capital structure generated 0.39 points at debt to capital in total, while cash flow to debt ratio is standing at 0.13. The debt to equity ratio resting at 0.64. The interest coverage ratio of the stock is 1.38.
Currently, EBITDA for the company is 244.97 million with net debt to EBITDA at 2.59. When we switch over and look at the enterprise to sales, we see a ratio of 2.87. The receivables turnover for the company is 24.65for trailing twelve months and the total asset turnover is 0.3.
Conclusion
In a nutshell, Sunstone Hotel Investors Inc (SHO) has experienced a mixed performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
