Sunstone Hotel Investors Inc (NYSE: SHO) has seen a rise in its stock price by 2.45 in relation to its previous close of 8.17. However, the company has experienced a -1.18% decline in its stock price over the last five trading sessions. seekingalpha.com reported 2025-05-06 that Sunstone Hotel Investors, Inc. is a hotel REIT specializing in upscale hotels, with a $1.7 billion equity capitalization and a unique capital structure. The Series H preferred equity, paying a 6.125% coupon, is a permanent form of capital with high duration and credit spread risk. The REIT’s clean balance sheet, with significant liquidity and no property-level debt, makes Series H an attractive, albeit sensitive, investment.
Is It Worth Investing in Sunstone Hotel Investors Inc (NYSE: SHO) Right Now?
Sunstone Hotel Investors Inc (NYSE: SHO) has a price-to-earnings ratio of 86.56x that is above its average ratio. Additionally, the 36-month beta value for SHO is 1.28. There are mixed opinions on the stock, with 3 analysts rating it as a “buy,” 0 rating it as “overweight,” 7 rating it as “hold,” and 1 rating it as “sell.”
The public float for SHO is 196.30M and currently, short sellers hold a 6.73% ratio of that float. The average trading volume of SHO on May 09, 2025 was 2.49M shares.
SHO’s Market Performance
SHO stock saw an increase of -1.18% in the past week, with a monthly gain of 8.42% and a quarterly increase of -25.33%. The volatility ratio for the week is 3.70%, and the volatility levels for the last 30 days are 4.21% for Sunstone Hotel Investors Inc (SHO). The simple moving average for the past 20 days is 1.07% for SHO’s stock, with a -19.23% simple moving average for the past 200 days.
Analysts’ Opinion of SHO
Many brokerage firms have already submitted their reports for SHO stocks, with BofA Securities repeating the rating for SHO by listing it as a “Buy.” The predicted price for SHO in the upcoming period, according to BofA Securities is $10 based on the research report published on April 30, 2025 of the current year 2025.
Morgan Stanley, on the other hand, stated in their research note that they expect to see SHO reach a price target of $10. The rating they have provided for SHO stocks is “Underweight” according to the report published on January 14th, 2025.
Wells Fargo gave a rating of “Equal Weight” to SHO, setting the target price at $10.50 in the report published on September 13th of the previous year.
SHO Trading at -8.09% 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 -32.55% of loss for the given period.
Volatility was left at 4.21%, however, over the last 30 days, the volatility rate increased by 3.70%, as shares sank -2.90% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -19.29% lower at present.
During the last 5 trading sessions, SHO fell by -1.18%, which changed the moving average for the period of 200-days by -20.36% in comparison to the 20-day moving average, which settled at $8.28. In addition, Sunstone Hotel Investors Inc saw -29.31% 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:
- 0.12 for the present operating margin
- 0.55 for the gross margin
The net margin for Sunstone Hotel Investors Inc stands at 0.05. The total capital return value is set at 0.04. Equity return is now at value 1.66, with 1.13 for asset returns.
Based on Sunstone Hotel Investors Inc (SHO), the company’s capital structure generated 0.29 points at debt to capital in total, while cash flow to debt ratio is standing at 0.2. The debt to equity ratio resting at 0.41. The interest coverage ratio of the stock is 2.2.
Currently, EBITDA for the company is 203.64 million with net debt to EBITDA at 3.59. When we switch over and look at the enterprise to sales, we see a ratio of 2.66. The receivables turnover for the company is 26.56for trailing twelve months and the total asset turnover is 0.29.
Conclusion
In conclusion, Sunstone Hotel Investors Inc (SHO) has seen bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. 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.
