DiamondRock Hospitality (NYSE:DRH) Sets New 12-Month High on Analyst Upgrade

DiamondRock Hospitality Company (NYSE:DRH)’s stock price hit a new 52-week high on Friday after Truist Financial upgraded the stock from a hold rating to a buy rating. Truist Financial now has a $11.00 price target on the stock. DiamondRock Hospitality traded as high as $9.44 and last traded at $9.2750, with a volume of 220894 shares. The stock had previously closed at $9.16.

A number of other brokerages have also recently issued reports on DRH. Morgan Stanley cut their target price on shares of DiamondRock Hospitality from $9.00 to $8.50 and set an “equal weight” rating on the stock in a report on Wednesday, October 22nd. Wells Fargo & Company raised their price target on DiamondRock Hospitality from $9.00 to $10.00 and gave the stock an “equal weight” rating in a report on Monday, December 1st. Evercore ISI boosted their price objective on DiamondRock Hospitality from $9.00 to $10.00 and gave the company an “in-line” rating in a research report on Thursday, November 20th. Barclays initiated coverage on DiamondRock Hospitality in a research report on Tuesday. They issued an “equal weight” rating and a $10.00 target price on the stock. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of DiamondRock Hospitality in a research note on Wednesday, October 8th. Two equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, DiamondRock Hospitality currently has an average rating of “Hold” and a consensus target price of $9.61.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Vident Advisory LLC boosted its stake in shares of DiamondRock Hospitality by 36.4% during the 1st quarter. Vident Advisory LLC now owns 23,343 shares of the real estate investment trust’s stock worth $180,000 after acquiring an additional 6,227 shares in the last quarter. AQR Capital Management LLC boosted its position in shares of DiamondRock Hospitality by 223.2% in the 1st quarter. AQR Capital Management LLC now owns 65,376 shares of the real estate investment trust’s stock valued at $505,000 after purchasing an additional 45,146 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in DiamondRock Hospitality by 5.1% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 123,672 shares of the real estate investment trust’s stock worth $955,000 after purchasing an additional 5,971 shares in the last quarter. Dynamic Technology Lab Private Ltd acquired a new stake in DiamondRock Hospitality during the 1st quarter worth about $403,000. Finally, United Services Automobile Association purchased a new stake in DiamondRock Hospitality during the first quarter valued at about $91,000.

DiamondRock Hospitality Stock Performance

The firm’s fifty day simple moving average is $8.94 and its 200 day simple moving average is $8.33. The company has a market capitalization of $1.89 billion, a price-to-earnings ratio of 37.10, a PEG ratio of 4.50 and a beta of 1.03. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.64 and a quick ratio of 1.64.

DiamondRock Hospitality (NYSE:DRH) last issued its quarterly earnings results on Thursday, November 6th. The real estate investment trust reported $0.29 EPS for the quarter, beating the consensus estimate of $0.25 by $0.04. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The business had revenue of $285.38 million during the quarter, compared to the consensus estimate of $277.45 million. During the same quarter in the prior year, the firm earned $0.27 EPS. The firm’s quarterly revenue was up .1% on a year-over-year basis. DiamondRock Hospitality has set its FY 2025 guidance at 1.020-1.06 EPS. On average, sell-side analysts forecast that DiamondRock Hospitality Company will post 0.96 EPS for the current year.

DiamondRock Hospitality Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, January 14th. Stockholders of record on Wednesday, December 31st will be issued a dividend of $0.08 per share. The ex-dividend date is Wednesday, December 31st. This represents a $0.32 dividend on an annualized basis and a dividend yield of 3.4%. DiamondRock Hospitality’s payout ratio is currently 128.00%.

About DiamondRock Hospitality

DiamondRock Hospitality Company is a real estate investment trust (REIT) that acquires, owns and manages a diversified portfolio of upscale, full-service hotels in urban gateway markets across the United States. Established in 2004 and headquartered in Bethesda, Maryland, the company focuses on investing in high-quality lodging properties that cater to both business and leisure travelers. Its assets are positioned in key metropolitan areas, enabling DiamondRock to benefit from strong demand drivers such as corporate travel, group conventions and resort leisure stays.

The company’s portfolio includes full-service hotels offering a broad range of amenities, including guest rooms, on-site food and beverage outlets, meeting and event space, fitness centers and spa services.