Sunstone Hotel Investors Inc. (NYSE: SHO) shares rose in value Thursday Dec 15 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Analysts at Zacks Investment Research upgraded shares of Sunstone Hotel Investors Inc. (NYSE: SHO) from Sell to Hold today. With a rating of Hold on the shares, the company has a 52-week high of $15.84. As a means of comparison, a number of other analysts have commented on the company recently, and the company has earned a consensus one-year price target of $14.38, less than the opening price of $15.52, a difference of 9.14 percent. Stock prices often move to the upside on recommendations and new price targets of professional analysts.
Shares of Sunstone Hotel Investors Inc. (NYSE: SHO) opened at $15.52 on Tuesday and has traded in a range between, $15.49 and $15.79, and last traded at $15.74, a jump of $0.20 or 1.29% over the previous closing price.
Sunstone Hotel Investors Inc. (NYSE: SHO) currently has a market cap of 3.41B.
Sunstone Hotel Investors Inc. (NYSE: SHO) Average Daily Trading Volume
The stock’s average daily volume is 2,361,660 shares out of a total float 214,757,000 and some 124,731 shares traded hands yesterday, lower than normal. Swing traders often use increases in trading volume to identify large volume growth or dissemination by institutional investors, so trading volume is likely to increase in the next few days.
However, a single day of heavy buy side trading is not enough to determine a trend. As such, market traders will continue to look for institutional sponsorship as a cue that financial institutions are moving forward.
Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These instituitional investors retain teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
Sunstone Hotel Investors Inc. (NYSE: SHO) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.
With that in mind, Sunstone Hotel Investors Inc. (NYSE: SHO) now has a 50-day MA of $13.94 and 200-day MA of $13.10. It has traded in a 52-week range between $9.52 – 15.84 and today’s last price is 0.63%% lower than the 52 week high of $15.84.
Earnings growth is a crucial factor to consider when buying stocks and investors identify companies that have been successful at growing their earnings by at least 25% over the past 3 years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.