DiamondRock Hospitality (NYSE:DRH) Reaches New 52-Week High Following Analyst Upgrade

DiamondRock Hospitality Company (NYSE:DRH)’s share price reached a new 52-week high during trading on Tuesday after Truist Financial raised their price target on the stock from $11.00 to $12.00. Truist Financial currently has a buy rating on the stock. DiamondRock Hospitality traded as high as $10.92 and last traded at $10.87, with a volume of 167797 shares. The stock had previously closed at $10.71.

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

Insider Activity

In other news, Director Michael A. Hartmeier sold 20,000 shares of the stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $10.46, for a total transaction of $209,200.00. Following the sale, the director directly owned 95,354 shares of the company’s stock, valued at $997,402.84. This represents a 17.34% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Steve Spierto sold 4,000 shares of the stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $9.93, for a total transaction of $39,720.00. Following the sale, the chief accounting officer directly owned 77,977 shares in the company, valued at approximately $774,311.61. The trade was a 4.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.90% of the company’s stock.

Hedge Funds Weigh In On DiamondRock Hospitality

A number of large investors have recently added to or reduced their stakes in the stock. Bank of America Corp DE raised its position in DiamondRock Hospitality by 7.2% during the first quarter. Bank of America Corp DE now owns 8,987,338 shares of the real estate investment trust’s stock worth $84,211,000 after acquiring an additional 606,962 shares during the period. Janus Henderson Group PLC raised its position in DiamondRock Hospitality by 10.1% during the first quarter. Janus Henderson Group PLC now owns 1,312,694 shares of the real estate investment trust’s stock worth $12,299,000 after acquiring an additional 119,921 shares during the period. Amundi raised its position in DiamondRock Hospitality by 30.9% during the first quarter. Amundi now owns 191,306 shares of the real estate investment trust’s stock worth $1,793,000 after acquiring an additional 45,198 shares during the period. California State Teachers Retirement System raised its position in DiamondRock Hospitality by 30.2% during the first quarter. California State Teachers Retirement System now owns 249,084 shares of the real estate investment trust’s stock worth $2,334,000 after acquiring an additional 57,774 shares during the period. Finally, Quantinno Capital Management LP raised its position in DiamondRock Hospitality by 43.2% during the first quarter. Quantinno Capital Management LP now owns 82,542 shares of the real estate investment trust’s stock worth $773,000 after acquiring an additional 24,889 shares during the period.

DiamondRock Hospitality Price Performance

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 stock’s 50-day simple moving average is $10.05 and its two-hundred day simple moving average is $9.57. The company has a market capitalization of $2.25 billion, a price-to-earnings ratio of 44.04, a PEG ratio of 4.50 and a beta of 0.99.

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

DiamondRock Hospitality Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, July 14th. Stockholders of record on Tuesday, June 30th will be issued a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a dividend yield of 3.3%. The ex-dividend date is Tuesday, June 30th. DiamondRock Hospitality’s payout ratio is currently 76.60%.

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.