DiamondRock Hospitality (NYSE:DRH) Sees Strong Trading Volume – What’s Next?

DiamondRock Hospitality Company (NYSE:DRH) saw unusually-strong trading volume on Tuesday . Approximately 3,790,381 shares changed hands during mid-day trading, an increase of 43% from the previous session’s volume of 2,643,076 shares.The stock last traded at $9.3150 and had previously closed at $9.45.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. Morgan Stanley cut their price target on shares of DiamondRock Hospitality from $9.00 to $8.50 and set an “equal weight” rating on the stock in a report on Wednesday, October 22nd. Barclays started coverage on shares of DiamondRock Hospitality in a research report on Tuesday, January 6th. They set an “equal weight” rating and a $10.00 target price on the stock. Wells Fargo & Company boosted their target price on DiamondRock Hospitality from $9.00 to $10.00 and gave the stock an “equal weight” rating in a research note on Monday, December 1st. Truist Financial raised DiamondRock Hospitality from a “hold” rating to a “buy” rating and increased their price target for the company from $10.00 to $11.00 in a research report on Friday, January 9th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of DiamondRock Hospitality in a report on Wednesday, October 8th. Three analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, DiamondRock Hospitality currently has a consensus rating of “Hold” and a consensus target price of $9.91.

DiamondRock Hospitality Stock Up 1.7%

The stock’s 50-day moving average price is $9.14 and its two-hundred day moving average price is $8.48. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 0.70. The stock has a market capitalization of $1.87 billion, a P/E ratio of 36.76, a P/E/G ratio of 4.50 and a beta of 1.03.

DiamondRock Hospitality (NYSE:DRH) last posted its quarterly earnings results on Thursday, November 6th. The real estate investment trust reported $0.29 EPS for the quarter, topping analysts’ consensus estimates of $0.25 by $0.04. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The company had revenue of $285.38 million for the quarter, compared to analysts’ expectations of $277.45 million. During the same quarter in the previous year, the firm posted $0.27 EPS. DiamondRock Hospitality’s revenue was up .1% on a year-over-year basis. DiamondRock Hospitality has set its FY 2025 guidance at 1.020-1.06 EPS. As a group, research analysts expect that DiamondRock Hospitality Company will post 0.96 earnings per share for the current fiscal year.

DiamondRock Hospitality Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, January 14th. Shareholders of record on Wednesday, December 31st were issued a dividend of $0.08 per share. The ex-dividend date of this dividend was Wednesday, December 31st. This represents a $0.32 annualized dividend and a yield of 3.5%. DiamondRock Hospitality’s dividend payout ratio is 128.00%.

Hedge Funds Weigh In On DiamondRock Hospitality

Large investors have recently modified their holdings of the business. State Street Corp boosted its holdings in DiamondRock Hospitality by 0.8% in the 2nd quarter. State Street Corp now owns 12,587,578 shares of the real estate investment trust’s stock worth $97,400,000 after buying an additional 93,929 shares during the period. Bank of America Corp DE lifted its position 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 worth $70,717,000 after acquiring an additional 1,377,897 shares in the last quarter. Alyeska Investment Group L.P. boosted its holdings in shares of 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 during the period. Pzena Investment Management LLC boosted its holdings in shares of DiamondRock Hospitality by 2.1% in the second quarter. Pzena Investment Management LLC now owns 8,785,278 shares of the real estate investment trust’s stock worth $67,295,000 after acquiring an additional 181,610 shares during the period. Finally, Centersquare Investment Management LLC grew its position in shares of DiamondRock Hospitality by 6.0% in the third quarter. Centersquare Investment Management LLC now owns 7,536,975 shares of the real estate investment trust’s stock valued at $59,994,000 after purchasing an additional 427,467 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.