Assessing the Risk and Potential of Sunstone Hotel Investors Inc’s (SHO) Stock

The stock of Sunstone Hotel Investors Inc (SHO) has seen a -4.59% decrease in the past week, with a -5.68% drop in the past month, and a 11.02% flourish in the past quarter. The volatility ratio for the week is 2.29%, and the volatility levels for the past 30 days are at 1.91% for SHO. The simple moving average for the last 20 days is -3.66% for SHO stock, with a simple moving average of 9.33% for the last 200 days.

Is It Worth Investing in Sunstone Hotel Investors Inc (NYSE: SHO) Right Now?

Sunstone Hotel Investors Inc (NYSE: SHO) has a higher price-to-earnings ratio of 15.26x compared to its average ratio, The 36-month beta value for SHO is at 1.22. Analysts have varying views on the stock, with 2 analysts rating it as a “buy,” 0 rating it as “overweight,” 9 as “hold,” and 0 as “sell.”

The public float for SHO is 198.45M, and currently, shorts hold a 5.23% of that float. The average trading volume for SHO on January 14, 2025 was 2.68M shares.

SHO) stock’s latest price update

Sunstone Hotel Investors Inc (NYSE: SHO)’s stock price has increased by 0.30 compared to its previous closing price of 11.50. However, the company has seen a -4.59% decrease in its stock price over the last five trading sessions. prnewswire.com reported 2025-01-13 that ALISO VIEJO, Calif., Jan. 13, 2025 /PRNewswire/ — Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO) announced that it will report financial results for the fourth quarter and full year 2024 on Friday, February 21, 2025, before the market opens.

Analysts’ Opinion of SHO

Wells Fargo, on the other hand, stated in their research note that they expect to see SHO reach a price target of $10.50. The rating they have provided for SHO stocks is “Equal Weight” according to the report published on September 13th, 2024.

Wolfe Research gave a rating of “Outperform” to SHO, setting the target price at $12 in the report published on July 10th of the previous year.

SHO Trading at 1.90% 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 -7.05% of loss for the given period.

Volatility was left at 1.91%, however, over the last 30 days, the volatility rate increased by 2.29%, as shares sank -5.63% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +11.80% upper at present.

During the last 5 trading sessions, SHO fell by -4.38%, which changed the moving average for the period of 200-days by +3.86% in comparison to the 20-day moving average, which settled at $11.97. In addition, Sunstone Hotel Investors Inc saw -2.58% 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:

  • 0.13 for the present operating margin
  • 0.49 for the gross margin

The net margin for Sunstone Hotel Investors Inc stands at 0.19. The total capital return value is set at 0.05. Equity return is now at value 8.03, with 5.45 for asset returns.

Based on Sunstone Hotel Investors Inc (SHO), the company’s capital structure generated 0.28 points at debt to capital in total, while cash flow to debt ratio is standing at 0.21. The debt to equity ratio resting at 0.38. The interest coverage ratio of the stock is 2.25.

Currently, EBITDA for the company is 387.31 million with net debt to EBITDA at 3.36. When we switch over and look at the enterprise to sales, we see a ratio of 3.33. The receivables turnover for the company is 26.69for trailing twelve months and the total asset turnover is 0.29.

Conclusion

In conclusion, Sunstone Hotel Investors Inc (SHO) has had a mixed performance lately. Opinion on the stock among analysts is mixed, with some giving it a “buy” rating and others a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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