DiamondRock Hospitality (NYSE:DRH) Given New $9.60 Price Target at Morgan Stanley

DiamondRock Hospitality (NYSE:DRH) had its price objective lifted by research analysts at Morgan Stanley from $9.50 to $9.60 in a research note issued to investors on Tuesday,Benzinga reports. The firm presently has an “equal weight” rating on the real estate investment trust’s stock. Morgan Stanley’s target price would indicate a potential downside of 9.13% from the stock’s previous close.

Several other brokerages also recently issued reports on DRH. Deutsche Bank Aktiengesellschaft upgraded shares of DiamondRock Hospitality from a “hold” rating to a “buy” rating and raised their price objective for the stock from $10.00 to $12.00 in a research note on Tuesday, January 13th. Stifel Nicolaus lifted their price target on shares of DiamondRock Hospitality from $11.00 to $11.25 and gave the stock a “hold” rating in a research note on Monday. Wells Fargo & Company lifted their price target on shares of DiamondRock Hospitality from $10.00 to $11.00 and gave the stock an “equal weight” rating in a research note on Wednesday, April 22nd. Citigroup lifted their price target on shares of DiamondRock Hospitality from $9.50 to $11.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. Finally, LADENBURG THALM/SH SH initiated coverage on shares of DiamondRock Hospitality in a research note on Thursday, March 26th. They set a “buy” rating and a $12.00 price target on the stock. Three analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $10.87.

DiamondRock Hospitality Stock Performance

Shares of DiamondRock Hospitality stock traded down $0.04 during midday trading on Tuesday, hitting $10.57. The company had a trading volume of 382,135 shares, compared to its average volume of 2,375,977. The business’s 50 day simple moving average is $9.88 and its two-hundred day simple moving average is $9.38. The stock has a market cap of $2.16 billion, a PE ratio of 42.22, a P/E/G ratio of 4.50 and a beta of 0.99. 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 has a 1-year low of $7.31 and a 1-year high of $10.90.

DiamondRock Hospitality (NYSE:DRH) last announced its quarterly earnings data on Thursday, February 26th. The real estate investment trust reported $0.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.03. The business had revenue of $274.53 million for the quarter, compared to the consensus estimate of $273.18 million. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. DiamondRock Hospitality’s quarterly revenue was down 1.6% on a year-over-year basis. During the same quarter last year, the company posted $0.24 earnings per share. DiamondRock Hospitality has set its FY 2026 guidance at 1.090-1.160 EPS. As a group, equities analysts predict that DiamondRock Hospitality will post 0.96 EPS for the current fiscal year.

Insiders Place Their Bets

In other DiamondRock Hospitality news, CAO Steve Spierto sold 4,000 shares of DiamondRock Hospitality stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $9.93, for a total transaction of $39,720.00. Following the completion of the transaction, the chief accounting officer directly owned 77,977 shares of the company’s stock, valued at approximately $774,311.61. This trade represents a 4.88% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in DRH. Cohen & Steers Inc. bought a new position in shares of DiamondRock Hospitality during the fourth quarter valued at $59,231,000. SG Americas Securities LLC lifted its holdings in shares of DiamondRock Hospitality by 106.1% during the first quarter. SG Americas Securities LLC now owns 4,172,671 shares of the real estate investment trust’s stock valued at $39,098,000 after acquiring an additional 2,147,881 shares during the period. Healthcare of Ontario Pension Plan Trust Fund lifted its holdings in shares of DiamondRock Hospitality by 907.2% during the fourth quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 2,292,360 shares of the real estate investment trust’s stock valued at $20,540,000 after acquiring an additional 2,064,760 shares during the period. Qube Research & Technologies Ltd lifted its holdings in shares of DiamondRock Hospitality by 469.0% during the third quarter. Qube Research & Technologies Ltd now owns 2,002,863 shares of the real estate investment trust’s stock valued at $15,943,000 after acquiring an additional 1,650,871 shares during the period. Finally, Bank of America Corp DE lifted its holdings in shares of DiamondRock Hospitality by 17.5% during the second quarter. Bank of America Corp DE now owns 9,231,991 shares of the real estate investment trust’s stock valued at $70,717,000 after acquiring an additional 1,377,897 shares during the period.

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.