DiamondRock Hospitality (NYSE:DRH) Hits New 52-Week High – Here’s Why

DiamondRock Hospitality Company (NYSE:DRH) shares reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $13.08 and last traded at $13.07, with a volume of 1660792 shares. The stock had previously closed at $12.91.

Analyst Upgrades and Downgrades

DRH has been the subject of several analyst reports. Truist Financial increased their target price on shares of DiamondRock Hospitality from $11.00 to $12.00 and gave the company a “buy” rating in a report on Tuesday, May 26th. Barclays raised their price target on shares of DiamondRock Hospitality from $10.00 to $12.00 and gave the company an “equal weight” rating in a research report on Monday, June 1st. Bank of America upped their price objective on shares of DiamondRock Hospitality from $12.50 to $13.00 and gave the stock a “buy” rating in a research report on Monday, July 20th. Morgan Stanley increased their price objective on shares of DiamondRock Hospitality from $9.60 to $10.00 and gave the company an “equal weight” rating in a research note on Friday, July 17th. Finally, Wells Fargo & Company lifted their target price on shares of DiamondRock Hospitality from $12.00 to $13.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 23rd. Four 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, DiamondRock Hospitality presently has an average rating of “Hold” and a consensus target price of $12.12.

DiamondRock Hospitality Price Performance

The stock has a market cap of $2.67 billion, a P/E ratio of 52.28, a P/E/G ratio of 4.50 and a beta of 0.98. The business has a 50 day simple moving average of $11.91 and a 200-day simple moving average of $10.54. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.64 and a current ratio of 1.64.

DiamondRock Hospitality Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, July 14th. Investors of record on Tuesday, June 30th were given a dividend of $0.09 per share. The ex-dividend date was Tuesday, June 30th. This represents a $0.36 annualized dividend and a yield of 2.8%. DiamondRock Hospitality’s dividend payout ratio is presently 76.60%.

Insider Activity

In related news, Director Michael A. Hartmeier sold 20,000 shares of the firm’s 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 completion of the sale, the director owned 95,354 shares in the company, valued at approximately $997,402.84. This trade represents a 17.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Kathleen Merrill sold 20,000 shares of DiamondRock Hospitality stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $11.88, for a total transaction of $237,600.00. Following the completion of the sale, the director directly owned 84,335 shares in the company, valued at approximately $1,001,899.80. This represents a 19.17% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.90% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On DiamondRock Hospitality

A number of hedge funds have recently modified their holdings of the stock. Allworth Financial LP lifted its stake in DiamondRock Hospitality by 146.0% in the fourth quarter. Allworth Financial LP now owns 2,859 shares of the real estate investment trust’s stock valued at $26,000 after purchasing an additional 1,697 shares during the last quarter. First Horizon Corp grew its holdings in DiamondRock Hospitality by 54.9% during the fourth quarter. First Horizon Corp now owns 3,214 shares of the real estate investment trust’s stock valued at $29,000 after purchasing an additional 1,139 shares during the period. EverSource Wealth Advisors LLC increased its position in DiamondRock Hospitality by 77.3% in the fourth quarter. EverSource Wealth Advisors LLC now owns 3,436 shares of the real estate investment trust’s stock worth $31,000 after buying an additional 1,498 shares during the last quarter. Global Retirement Partners LLC raised its stake in shares of DiamondRock Hospitality by 12,114.7% in the fourth quarter. Global Retirement Partners LLC now owns 4,153 shares of the real estate investment trust’s stock valued at $37,000 after buying an additional 4,119 shares during the period. Finally, Danske Bank A S bought a new stake in shares of DiamondRock Hospitality in the third quarter valued at $33,000.

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.