Morgan Stanley Reaffirms Underweight Rating for Sunstone Hotel Investors (NYSE:SHO)

Sunstone Hotel Investors (NYSE:SHO)‘s stock had its “underweight” rating restated by Morgan Stanley in a research report issued to clients and investors on Tuesday, Marketbeat reports. They presently have a $10.00 price target on the real estate investment trust’s stock. Morgan Stanley’s price target would indicate a potential downside of 14.09% from the company’s previous close.

Other research analysts have also issued reports about the company. Jefferies Financial Group upped their price objective on Sunstone Hotel Investors from $10.00 to $12.00 and gave the company a “hold” rating in a report on Thursday, January 2nd. Wells Fargo & Company upped their price target on shares of Sunstone Hotel Investors from $11.00 to $13.00 and gave the company an “equal weight” rating in a research note on Monday, December 9th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating, two have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $11.86.

Sunstone Hotel Investors Price Performance

Shares of SHO opened at $11.64 on Tuesday. The company’s 50-day moving average is $11.44 and its 200-day moving average is $10.66. The company has a debt-to-equity ratio of 0.44, a current ratio of 2.98 and a quick ratio of 2.98. The firm has a market capitalization of $2.34 billion, a PE ratio of 15.32, a PEG ratio of 5.14 and a beta of 1.21. Sunstone Hotel Investors has a fifty-two week low of $9.39 and a fifty-two week high of $12.41.

Sunstone Hotel Investors (NYSE:SHO) last announced its quarterly earnings results on Tuesday, November 12th. The real estate investment trust reported $0.18 EPS for the quarter, missing analysts’ consensus estimates of $0.20 by ($0.02). The company had revenue of $226.40 million during the quarter, compared to analyst estimates of $224.61 million. Sunstone Hotel Investors had a net margin of 18.61% and a return on equity of 9.04%. The firm’s quarterly revenue was down 8.6% on a year-over-year basis. During the same quarter last year, the company posted $0.23 EPS. Equities analysts forecast that Sunstone Hotel Investors will post 0.79 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Geode Capital Management LLC raised its position in shares of Sunstone Hotel Investors by 2.1% in the 3rd quarter. Geode Capital Management LLC now owns 5,247,927 shares of the real estate investment trust’s stock valued at $54,169,000 after buying an additional 109,327 shares in the last quarter. JPMorgan Chase & Co. increased its stake in Sunstone Hotel Investors by 31.0% in the third quarter. JPMorgan Chase & Co. now owns 4,775,533 shares of the real estate investment trust’s stock valued at $49,284,000 after acquiring an additional 1,130,558 shares during the last quarter. Charles Schwab Investment Management Inc. raised its position in Sunstone Hotel Investors by 3.0% during the third quarter. Charles Schwab Investment Management Inc. now owns 4,081,978 shares of the real estate investment trust’s stock valued at $42,126,000 after purchasing an additional 117,390 shares in the last quarter. Westwood Holdings Group Inc. lifted its stake in Sunstone Hotel Investors by 1.9% during the second quarter. Westwood Holdings Group Inc. now owns 2,818,270 shares of the real estate investment trust’s stock worth $29,479,000 after purchasing an additional 51,203 shares during the last quarter. Finally, The Manufacturers Life Insurance Company lifted its stake in Sunstone Hotel Investors by 1.0% during the second quarter. The Manufacturers Life Insurance Company now owns 2,651,189 shares of the real estate investment trust’s stock worth $27,731,000 after purchasing an additional 25,086 shares during the last quarter. Institutional investors and hedge funds own 99.37% of the company’s stock.

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.