DiamondRock Hospitality (NYSE:DRH) Sets New 52-Week High – Still a Buy?

DiamondRock Hospitality Company (NYSE:DRH) hit a new 52-week high on Thursday . The company traded as high as $11.87 and last traded at $11.64, with a volume of 2938024 shares trading hands. The stock had previously closed at $11.70.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on DRH. Stifel Nicolaus set a $12.25 price objective on shares of DiamondRock Hospitality in a research note on Thursday, June 4th. Morgan Stanley lifted their price objective on shares of DiamondRock Hospitality from $9.50 to $9.60 and gave the company an “equal weight” rating in a research note on Tuesday, May 12th. Barclays lifted their price objective on shares of DiamondRock Hospitality from $10.00 to $12.00 and gave the company an “equal weight” rating in a research note on Monday, June 1st. Truist Financial lifted their price objective on shares of DiamondRock Hospitality from $11.00 to $12.00 and gave the company a “buy” rating in a research note on Tuesday, May 26th. Finally, Wells Fargo & Company lifted their price objective on shares of DiamondRock Hospitality from $11.00 to $12.00 and gave the company an “equal weight” rating in a research note on Monday, June 1st. Three investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $11.43.

DiamondRock Hospitality Trading Up 0.7%

The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 0.70. The firm’s 50-day simple moving average is $10.61 and its 200 day simple moving average is $9.82. The stock has a market capitalization of $2.44 billion, a P/E ratio of 47.68, a PEG ratio of 4.50 and a beta of 1.00.

DiamondRock Hospitality Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 14th. Shareholders of record on Tuesday, June 30th will be given a $0.09 dividend. The ex-dividend date is Tuesday, June 30th. This represents a $0.36 annualized dividend and a yield of 3.0%. DiamondRock Hospitality’s payout ratio is 76.60%.

Insider Buying and Selling

In other DiamondRock Hospitality news, Director Michael A. Hartmeier sold 20,000 shares of the business’s stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $10.46, for a total value of $209,200.00. Following the sale, the director directly owned 95,354 shares in the company, valued at approximately $997,402.84. The trade was a 17.34% 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 hyperlink. Company insiders own 0.90% of the company’s stock.

Institutional Investors Weigh In On DiamondRock Hospitality

Several hedge funds and other institutional investors have recently bought and sold shares of the business. State Street Corp raised its position in DiamondRock Hospitality by 0.8% in the second quarter. State Street Corp now owns 12,587,578 shares of the real estate investment trust’s stock worth $97,400,000 after acquiring an additional 93,929 shares in the last quarter. Bank of America Corp DE raised its position in DiamondRock Hospitality by 17.5% in the second quarter. Bank of America Corp DE now owns 9,231,991 shares of the real estate investment trust’s stock worth $70,717,000 after acquiring an additional 1,377,897 shares in the last quarter. Alyeska Investment Group L.P. raised its position in DiamondRock Hospitality by 5.5% in the third quarter. Alyeska Investment Group L.P. now owns 9,152,343 shares of the real estate investment trust’s stock worth $72,853,000 after acquiring an additional 475,611 shares in the last quarter. Centersquare Investment Management LLC raised its holdings in DiamondRock Hospitality by 3.2% during the 4th quarter. Centersquare Investment Management LLC now owns 7,780,988 shares of the real estate investment trust’s stock worth $69,718,000 after buying an additional 244,013 shares during the period. Finally, Cohen & Steers Inc. acquired a new stake in DiamondRock Hospitality during the 4th quarter worth about $59,231,000.

DiamondRock Hospitality Company Profile

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.