DiamondRock Hospitality (NYSE:DRH) Reaches New 52-Week High – Here’s What Happened

DiamondRock Hospitality Company (NYSE:DRH)’s share price hit a new 52-week high during trading on Tuesday. The stock traded as high as $13.82 and last traded at $13.7950, with a volume of 1,147,819 shares trading hands. The stock had previously closed at $13.46.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on DRH. Stifel Nicolaus lifted their price objective on DiamondRock Hospitality from $12.50 to $13.25 and gave the company a “hold” rating in a report on Friday, July 31st. Barclays increased their target price on shares of DiamondRock Hospitality from $12.00 to $14.00 and gave the stock an “equal weight” rating in a report on Thursday, August 27th. Wells Fargo & Company increased their target price 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. Citigroup raised their target price on shares of DiamondRock Hospitality from $11.00 to $13.00 and gave the company a “neutral” rating in a research report on Wednesday, July 22nd. Finally, Truist Financial boosted their price target on shares of DiamondRock Hospitality from $12.00 to $15.00 and gave the company a “buy” rating in a report on Thursday, September 10th. Four investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $12.93.

DiamondRock Hospitality Stock Performance

The business has a fifty day simple moving average of $12.55 and a two-hundred day simple moving average of $11.85. 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 company has a market cap of $2.85 billion, a PE ratio of 55.76, a price-to-earnings-growth ratio of 4.50 and a beta of 1.01.

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

DiamondRock Hospitality Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 14th. Investors of record on Wednesday, September 30th were given a dividend of $0.11 per share. The ex-dividend date of this dividend was Wednesday, September 30th. This is an increase from DiamondRock Hospitality’s previous quarterly dividend of $0.09. This represents a $0.44 dividend on an annualized basis and a yield of 3.2%. DiamondRock Hospitality’s dividend payout ratio is 60.27%.

Hedge Funds Weigh In On DiamondRock Hospitality

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new position in DiamondRock Hospitality in the second quarter worth about $475,282,000. Bank of America Corp DE purchased a new stake in shares of DiamondRock Hospitality during the second quarter valued at about $129,710,000. Pzena Investment Management LLC bought a new stake in shares of DiamondRock Hospitality in the 2nd quarter valued at about $34,464,000. SG Americas Securities LLC boosted its holdings in shares of DiamondRock Hospitality by 106.1% in the 1st quarter. SG Americas Securities LLC now owns 4,172,671 shares of the real estate investment trust’s stock valued at $39,098,000 after buying an additional 2,147,881 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new stake in shares of DiamondRock Hospitality in the 2nd quarter valued at about $19,809,000.

DiamondRock Hospitality Company Profile

DiamondRock Hospitality Company (NYSE: DRH) is a self-advised real estate investment trust that owns a portfolio of hotels and resort properties in the United States. The company focuses on lodging real estate in leisure destinations and gateway markets, with properties serving business travelers, vacationers, and group customers.

DiamondRock’s portfolio includes hotels operated under nationally recognized brands as well as independent and boutique properties. Its business activities include acquiring, owning, leasing, and strategically managing hospitality real estate, while day-to-day hotel operations are generally carried out by third-party management companies and brand operators.

The company was formed in 2004 through a spin-off from Marriott International and is headquartered in Bethesda, Maryland.