Evercore ISI lifts Sunstone Hotel Investors Inc. [SHO] price estimate. Who else is bullish?


Sunstone Hotel Investors Inc. [NYSE: SHO] traded at a high on 03/29/22, posting a 2.81 gain after which it closed the day’ session at $12.07. The company report on March 17, 2022 that SUNSTONE HOTEL INVESTORS COMPLETES DISPOSITION OF TWO CHICAGO HOTELS, PROVIDES OPERATIONS UPDATE AND COMMENCES SHARE REPURCHASES.

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Sunstone Hotel Investors, Inc. (the “Company” or “Sunstone”) (NYSE: SHO), the owner of Long-Term Relevant Real Estate® in the lodging industry, today announced that it has completed the sale of the 368-room Embassy Suites Chicago and the 361-room Hilton Garden Inn Chicago Downtown/Magnificent Mile (the “Chicago Hotels”). The Chicago Hotels were sold for a combined gross sale price of $129.5 million, or $178,000 per key, which represents a 9.8x multiple on 2019 Hotel Adjusted EBITDAre and an 8.8% cap rate on 2019 Hotel Net Operating Income. The Chicago Hotels generated an IRR of approximately 9% for the Company over the life of the investment. The Company anticipates that the Chicago Hotels will generate a combined first quarter 2022 net loss before any gain on sale of $3.1 million to $3.6 million and Hotel Adjusted EBITDAre loss of approximately $2.0 million to $2.5 million through the date of sale.

Bryan Giglia, Chief Executive Officer, stated, “We are pleased to announce the sale of these two hotels as it marks our exit from the Chicago market, which has been hindered by excess supply and an inability to drive meaningful rate and profitability growth. We expect to recycle the proceeds into higher growth and greater per-share NAV enhancing investments. With these sales, we have now largely completed our non-core disposition program and we are actively looking to grow the portfolio through the addition of Long-Term Relevant Real Estate.”.

The results of the trading session contributed to over 4845818 shares changing hands. Over the past one week, the price volatility of Sunstone Hotel Investors Inc. stands at 2.24% while the volatility over the past one month is 3.51%.

The market cap for SHO stock reached $2.59 billion, with 217.89 million shares outstanding and 215.86 million shares in the current float. Compared to the average trading volume of 3.87M shares, SHO reached a trading volume of 4845818 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus 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 $12.33 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 2.90. 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.

Evercore ISI have made an estimate for Sunstone Hotel Investors Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on March 01, 2022. While these analysts kept the previous recommendation, Barclays dropped their target price from $15 to $11. The new note on the price target was released on March 01, 2022, representing the official price target for Sunstone Hotel Investors Inc. stock. Previously, the target price had yet another raise from $13 to $14, while Morgan Stanley kept a Overweight rating on SHO stock. On January 10, 2022, analysts decreased their price target for SHO shares from 14 to 12.

The Average True Range (ATR) for Sunstone Hotel Investors Inc. is set at 0.41, with the Price to Sales ratio for SHO stock in the period of the last 12 months amounting to 5.08. The Price to Book ratio for the last quarter was 1.37, with the Price to Cash per share for the same quarter was set at 0.56.

How has SHO stock performed recently?

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 3.07. With this latest performance, SHO shares gained by 14.08% in over the last four-week period, additionally sinking by -1.15% over the last 6 months – not to mention a drop of -5.18% 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 62.26, with the RSI for the last a single of trading hit 66.92, and the three-weeks RSI is set at 58.85 for Sunstone Hotel Investors Inc. [SHO]. The present Moving Average for the last 50 days of trading for this stock 11.25, while it was recorded at 11.77 for the last single week of trading, and 11.73 for the last 200 days.

Sunstone Hotel Investors Inc. [SHO]: Deeper insight into the fundamentals

Sunstone Hotel Investors Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.60 and a Current Ratio set at 1.60.

Earnings analysis for Sunstone Hotel Investors Inc. [SHO]

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%.

Insider trade positions for Sunstone Hotel Investors Inc. [SHO]

There are presently around $2,638 million, in the hands of institutional investors. The top three institutional holders of SHO stocks are: VANGUARD GROUP INC with ownership of 32,275,293, which is approximately 1.019% of the company’s market cap and around 0.70% of the total institutional ownership; BLACKROCK INC., holding 21,161,027 shares of the stock with an approximate value of $248.43 million in SHO stocks shares; and PRICE T ROWE ASSOCIATES INC /MD/, currently with $150.18 million in SHO stock with ownership of nearly -6.952% of the company’s market capitalization.

118 institutional holders increased their position in Sunstone Hotel Investors Inc. [NYSE:SHO] by around 31,303,195 shares. Additionally, 108 investors decreased positions by around 25,081,186 shares, while 17 investors held positions by with 168,287,546 shares. The mentioned changes placed institutional holdings at 224,671,927 shares, according to the latest SEC report filing. SHO stock had 32 new institutional investments in for a total of 4,630,114 shares, while 25 institutional investors sold positions of 1,397,328 shares during the same period.