DiamondRock Hospitality (NYSE:DRH) Stock Gets Price Target Boost from Morgan Stanley

DiamondRock Hospitality (NYSE:DRH) had its price objective raised by Morgan Stanley from $11.00 to $12.00 in a research report issued to clients and investors on Monday, Benzinga reports. The brokerage currently has an “equal weight” rating on the real estate investment trust’s stock. Morgan Stanley’s price objective points to a potential downside of 8.81% from the stock’s previous close.

Several other brokerages also recently weighed in on DRH. LADENBURG THALM/SH SH raised their price target on shares of DiamondRock Hospitality from $13.00 to $14.00 and gave the company a “buy” rating in a research report on Thursday, June 18th. Wells Fargo & Company boosted their price objective on shares of DiamondRock Hospitality from $12.00 to $13.00 and gave the stock an “equal weight” rating in a report on Thursday, July 23rd. Truist Financial upped their price objective on DiamondRock Hospitality from $12.00 to $15.00 and gave the company a “buy” rating in a research report on Thursday, September 10th. Barclays increased their target price on DiamondRock Hospitality from $12.00 to $14.00 and gave the company an “equal weight” rating in a research note on Thursday, August 27th. Finally, Bank of America increased their target price on DiamondRock Hospitality from $12.50 to $13.00 and gave the company a “buy” rating in a research note on Monday, July 20th. Four investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $12.93.

DiamondRock Hospitality Stock Performance

Shares of DiamondRock Hospitality stock opened at $13.16 on Monday. The stock has a market cap of $2.69 billion, a price-to-earnings ratio of 52.64, a PEG ratio of 4.50 and a beta of 1.01. The firm’s 50-day moving average is $12.43 and its 200 day moving average is $11.68. DiamondRock Hospitality has a 1 year low of $7.47 and a 1 year high of $13.79. 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 announced its quarterly earnings data on Thursday, July 30th. The real estate investment trust reported $0.44 EPS for the quarter, beating the consensus estimate of $0.22 by $0.22. The company had revenue of $318.29 million for the quarter, compared to the consensus estimate of $314.98 million. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. DiamondRock Hospitality’s revenue for the quarter was up 4.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.35 EPS. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. Sell-side analysts anticipate that DiamondRock Hospitality will post 0.96 EPS for the current fiscal year.

Hedge Funds Weigh In On DiamondRock Hospitality

Several hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new stake in shares of DiamondRock Hospitality in the second quarter worth $475,282,000. Bank of America Corp DE bought a new position in DiamondRock Hospitality in the second quarter valued at about $129,710,000. SG Americas Securities LLC boosted its position in DiamondRock Hospitality by 106.1% in the first quarter. SG Americas Securities LLC now owns 4,172,671 shares of the real estate investment trust’s stock worth $39,098,000 after purchasing an additional 2,147,881 shares during the last quarter. Pzena Investment Management LLC purchased a new position in DiamondRock Hospitality in the second quarter worth about $34,464,000. Finally, Dimensional Fund Advisors LP boosted its position in DiamondRock Hospitality by 1.3% in the first quarter. Dimensional Fund Advisors LP now owns 2,972,171 shares of the real estate investment trust’s stock worth $27,850,000 after purchasing an additional 37,482 shares during the last quarter.

DiamondRock Hospitality Company Profile

DiamondRock Hospitality Company (NYSE: DRH) is a self-advised real estate investment trust that owns a portfolio of upscale and luxury hotels and resorts in the United States. The company focuses on acquiring, owning and strategically managing lodging properties in major gateway markets, destination resorts and other high-demand locations.

DiamondRock’s portfolio includes full-service hotels operating under nationally recognized brands such as Marriott, Hilton and Hyatt, as well as independent and boutique properties.