Sunstone Hotel Investors Inc. [NYSE: SHO] closed the trading session at $13.55 on 04/29/21. The day’s price range saw the stock hit a low of $13.31, while the highest price level was $13.62. The company report on April 29, 2021 that Sunstone Hotel Investors Acquires The 130-Room Montage Healdsburg Resort For $265 Million.
Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO), the owner of Long-Term Relevant Real Estate® in the hospitality sector, announced the acquisition of the fee-simple interest in the 130-room Montage Healdsburg (the “Resort”). The newly constructed luxury Resort, which was completed in December 2020, was acquired for a gross purchase price of $265 million. The acquisition was funded from cash on hand and through the direct issuance of $66 million of perpetual preferred equity (the “Series G Preferred Equity”) to the seller, affiliates of Ohana Real Estate Investors (“Ohana” or the “Seller”). Upon stabilization, the Company expects the Resort to generate a 6.0% to 7.0% net operating income yield on total invested capital. The acquisition of the Resort further advances Sunstone’s strategy of owning a portfolio of Long-Term Relevant Real Estate®.
John Arabia, President and CEO, stated, “Montage Healdsburg is a spectacular resort, ideally located in one of the most sought-after and highest-rated leisure destinations in the U.S. The Resort, which took over 15 years to develop, is a perfect example of Long-Term Relevant Real Estate and its addition elevates the overall quality and growth prospects of our portfolio. Leveraging our industry relationships, we acquired the Resort on an off-market basis and at a discount to what it would cost to develop. The acquisition is consistent with our stated tactics of acquiring LTRR in the early phases of a cyclical recovery and putting to work a portion of our excess liquidity, all while maintaining financial flexibility and access to capital to fund incremental external growth. Additionally, we are funding 25% of the transaction with attractively structured perpetual preferred equity that is being issued directly to the Seller that aligns our interests and gives us additional optionality.”.
The stocks have a year to date performance of 19.59 percent and weekly performance of 8.66 percent. The stock has been moved at 77.36 percent over the last six months. The stock has performed 6.44 percent around the most recent 30 days and changed 23.63 percent over the most recent 3-months.
If compared to the average trading volume of 2.23M shares, SHO reached to a volume of 3483984 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Sunstone Hotel Investors Inc. [SHO]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SHO shares is $12.25 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SHO stock is a recommendation set at 3.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Wells Fargo have made an estimate for Sunstone Hotel Investors Inc. shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on December 10, 2020. While these analysts kept the previous recommendation, Jefferies raised their target price from $10 to $12. The new note on the price target was released on November 23, 2020, representing the official price target for Sunstone Hotel Investors Inc. stock. Previously, the target price had yet another raise to $9, while Compass Point analysts kept a Neutral rating on SHO stock.
The Average True Range (ATR) for Sunstone Hotel Investors Inc. is set at 0.37, with the Price to Sales ratio for SHO stock in the period of the last 12 months amounting to 10.77. The Price to Book ratio for the last quarter was 1.56, with the Price to Cash per share for the same quarter was set at 1.73.
SHO stock trade performance evaluation
Sunstone Hotel Investors Inc. [SHO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 8.66. With this latest performance, SHO shares gained by 6.44% in over the last four-week period, additionally plugging by 77.36% over the last 6 months – not to mention a rise of 41.15% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SHO stock in for the last two-week period is set at 65.89, with the RSI for the last a single of trading hit 73.50, and the three-weeks RSI is set at 61.86 for Sunstone Hotel Investors Inc. [SHO]. The present Moving Average for the last 50 days of trading for this stock 12.73, while it was recorded at 13.06 for the last single week of trading, and 10.16 for the last 200 days.
Sunstone Hotel Investors Inc. [SHO]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Sunstone Hotel Investors Inc. [SHO] shares currently have an operating margin of -92.79 and a Gross Margin at -53.04. Sunstone Hotel Investors Inc.’s Net Margin is presently recorded at -151.08.
Return on Total Capital for SHO is now -7.60, given the latest momentum, and Return on Invested Capital for the company is -12.72. Return on Equity for this stock declined to -17.51, with Return on Assets sitting at -11.72. When it comes to the capital structure of this company, Sunstone Hotel Investors Inc. [SHO] has a Total Debt to Total Equity ratio set at 38.82. Additionally, SHO Total Debt to Total Capital is recorded at 27.97, with Total Debt to Total Assets ending up at 26.64. Long-Term Debt to Equity for the company is recorded at 42.40, with the Long-Term Debt to Total Capital now at 27.71.
Reflecting on the efficiency of the workforce at the company, Sunstone Hotel Investors Inc. [SHO] managed to generate an average of -$10,118,950 per employee. Receivables Turnover for the company is 10.85 with a Total Asset Turnover recorded at a value of 0.08.Sunstone Hotel Investors Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 4.80 and a Current Ratio set at 4.80.
Earnings per share (EPS) analysis for Sunstone Hotel Investors Inc. [SHO] stock
With the latest financial reports released by the company, Sunstone Hotel Investors Inc. posted -0.75/share EPS, while the average EPS was predicted by analysts to be reported at -0.03/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -2,400.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SHO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Sunstone Hotel Investors Inc. go to 19.90%.
Sunstone Hotel Investors Inc. [SHO]: Insider Ownership positions
There are presently around $2,952 million, in the hands of institutional investors. The top three institutional holders of SHO stocks are: VANGUARD GROUP INC with ownership of 29,983,878, which is approximately 2.172% of the company’s market cap and around 1.30% of the total institutional ownership; BLACKROCK INC., holding 22,311,924 shares of the stock with an approximate value of $295.41 million in SHO stocks shares; and PRICE T ROWE ASSOCIATES INC /MD/, currently with $159.08 million in SHO stock with ownership of nearly -1.178% of the company’s market capitalization.
Positions in Sunstone Hotel Investors Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 102 institutional holders increased their position in Sunstone Hotel Investors Inc. [NYSE:SHO] by around 37,185,551 shares. Additionally, 105 investors decreased positions by around 30,884,448 shares, while 18 investors held positions by with 154,867,084 shares. The mentioned changes placed institutional holdings at 222,937,083 shares, according to the latest SEC report filing. SHO stock had 33 new institutional investments in for a total of 15,406,518 shares, while 35 institutional investors sold positions of 16,906,689 shares during the same period.