Truist Financial Forecasts Strong Price Appreciation for DiamondRock Hospitality (NYSE:DRH) Stock

DiamondRock Hospitality (NYSE:DRH) had its price target lifted by investment analysts at Truist Financial from $11.00 to $12.00 in a research note issued on Tuesday,Benzinga reports. The brokerage currently has a “buy” rating on the real estate investment trust’s stock. Truist Financial’s target price suggests a potential upside of 9.89% from the stock’s current price.

DRH has been the topic of several other research reports. Wells Fargo & Company upped their price target on shares of DiamondRock Hospitality from $10.00 to $11.00 and gave the company an “equal weight” rating in a report on Wednesday, April 22nd. Stifel Nicolaus upped their price target on shares of DiamondRock Hospitality from $11.00 to $11.25 and gave the company a “hold” rating in a report on Monday, May 11th. Citigroup upped their price target on shares of DiamondRock Hospitality from $9.50 to $11.00 and gave the company a “neutral” rating in a report on Wednesday, May 6th. LADENBURG THALM/SH SH assumed coverage on shares of DiamondRock Hospitality in a report on Thursday, March 26th. They issued a “buy” rating and a $12.00 price target on the stock. Finally, Morgan Stanley upped their price target on shares of DiamondRock Hospitality from $9.50 to $9.60 and gave the company an “equal weight” rating in a report on Tuesday, May 12th. Three investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $10.98.

DiamondRock Hospitality Price Performance

Shares of NYSE DRH traded up $0.21 on Tuesday, hitting $10.92. The company’s stock had a trading volume of 439,455 shares, compared to its average volume of 2,319,649. DiamondRock Hospitality has a 12-month low of $7.39 and a 12-month high of $10.95. The company has a market capitalization of $2.23 billion, a price-to-earnings ratio of 43.68, a price-to-earnings-growth 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. The stock has a 50 day moving average of $10.05 and a 200-day moving average of $9.57.

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

Insider Activity at DiamondRock Hospitality

In related news, Director Michael A. Hartmeier sold 20,000 shares of the company’s stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $10.46, for a total transaction of $209,200.00. Following the completion of the transaction, the director owned 95,354 shares of the company’s stock, valued at approximately $997,402.84. This represents a 17.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Steve Spierto sold 4,000 shares of the company’s stock in a transaction that occurred 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 transaction, the chief accounting officer directly owned 77,977 shares of the company’s stock, valued at $774,311.61. This trade represents a 4.88% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.90% of the company’s stock.

Institutional Investors Weigh In On DiamondRock Hospitality

Several large investors have recently made changes to their positions in DRH. Allworth Financial LP increased its position in shares of DiamondRock Hospitality by 146.0% in the fourth quarter. Allworth Financial LP now owns 2,859 shares of the real estate investment trust’s stock worth $26,000 after acquiring an additional 1,697 shares in the last quarter. First Horizon Corp increased its position in shares of DiamondRock Hospitality by 54.9% in the fourth quarter. First Horizon Corp now owns 3,214 shares of the real estate investment trust’s stock worth $29,000 after acquiring an additional 1,139 shares in the last quarter. EverSource Wealth Advisors LLC increased its position in shares of DiamondRock Hospitality by 77.3% in the fourth quarter. EverSource Wealth Advisors LLC now owns 3,436 shares of the real estate investment trust’s stock worth $31,000 after acquiring an additional 1,498 shares in the last quarter. Danske Bank A S acquired a new stake in shares of DiamondRock Hospitality in the third quarter worth $33,000. Finally, Global Retirement Partners LLC increased its position in shares of DiamondRock Hospitality by 12,114.7% in the fourth quarter. Global Retirement Partners LLC now owns 4,153 shares of the real estate investment trust’s stock worth $37,000 after acquiring an additional 4,119 shares in the last quarter.

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.