Canada Pension Plan Investment Board Takes $829,000 Position in DiamondRock Hospitality Company $DRH

Canada Pension Plan Investment Board bought a new position in DiamondRock Hospitality Company (NYSE:DRH) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor bought 68,100 shares of the real estate investment trust’s stock, valued at approximately $829,000.

Several other institutional investors also recently modified their holdings of the business. BlackRock Inc. bought a new stake in DiamondRock Hospitality during the second quarter worth about $475,282,000. State Street Corp increased its stake in shares of DiamondRock Hospitality by 0.8% during the second quarter. State Street Corp now owns 12,587,578 shares of the real estate investment trust’s stock valued at $97,400,000 after purchasing an additional 93,929 shares in the last quarter. 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 purchasing an additional 1,377,897 shares during the last quarter. Alyeska Investment Group L.P. lifted its holdings in shares of DiamondRock Hospitality by 5.5% during the third quarter. Alyeska Investment Group L.P. now owns 9,152,343 shares of the real estate investment trust’s stock valued at $72,853,000 after purchasing an additional 475,611 shares during the last quarter. Finally, Centersquare Investment Management LLC lifted its holdings in shares of DiamondRock Hospitality by 3.2% during the fourth quarter. Centersquare Investment Management LLC now owns 7,780,988 shares of the real estate investment trust’s stock valued at $69,718,000 after purchasing an additional 244,013 shares during the last quarter.

DiamondRock Hospitality Stock Down 3.1%

DRH stock opened at $12.31 on Tuesday. DiamondRock Hospitality Company has a 1-year low of $7.47 and a 1-year high of $13.79. The business has a fifty day moving average price of $12.49 and a 200-day moving average price of $11.10. 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 market capitalization of $2.52 billion, a P/E ratio of 49.24, a P/E/G ratio of 4.50 and a beta of 0.98.

DiamondRock Hospitality (NYSE:DRH) last announced its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.22 by $0.22. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The firm had revenue of $318.29 million for the quarter, compared to the consensus estimate of $314.98 million. During the same period in the prior year, the company posted $0.35 earnings per share. The company’s quarterly revenue was up 4.1% on a year-over-year basis. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. Equities analysts forecast that DiamondRock Hospitality Company will post 0.96 earnings per share for the current fiscal year.

DiamondRock Hospitality Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 30th will be paid a dividend of $0.11 per share. The ex-dividend date is Wednesday, September 30th. This represents a $0.44 annualized dividend and a yield of 3.6%. This is an increase from DiamondRock Hospitality’s previous quarterly dividend of $0.09. DiamondRock Hospitality’s dividend payout ratio (DPR) is currently 60.27%.

Insider Transactions at DiamondRock Hospitality

In other news, Director Kathleen Merrill sold 20,000 shares of the firm’s stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $11.88, for a total transaction of $237,600.00. Following the sale, the director owned 84,335 shares of the company’s stock, valued at $1,001,899.80. This trade represents a 19.17% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 0.90% of the company’s stock.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on DRH shares. Barclays upped their price target on DiamondRock Hospitality from $12.00 to $14.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 27th. Bank of America lifted their price objective on DiamondRock Hospitality from $12.50 to $13.00 and gave the company a “buy” rating in a research note on Monday, July 20th. Wells Fargo & Company boosted their target price on DiamondRock Hospitality from $12.00 to $13.00 and gave the stock an “equal weight” rating in a report on Thursday, July 23rd. Stifel Nicolaus increased their target price on DiamondRock Hospitality from $12.50 to $13.25 and gave the stock a “hold” rating in a research note on Friday, July 31st. Finally, Morgan Stanley raised their price target on DiamondRock Hospitality from $10.00 to $11.00 and gave the company an “equal weight” rating in a report on Tuesday, August 18th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat, DiamondRock Hospitality has an average rating of “Moderate Buy” and a consensus target price of $12.53.

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.