DiamondRock Hospitality (NYSE:DRH) Sets New 1-Year High Following Analyst Upgrade

Shares of DiamondRock Hospitality Company (NYSE:DRH) hit a new 52-week high during trading on Friday after Truist Financial upgraded the stock from a hold rating to a buy rating. Truist Financial now has a $11.00 price target on the stock. DiamondRock Hospitality traded as high as $9.44 and last traded at $9.2750, with a volume of 220894 shares changing hands. The stock had previously closed at $9.16.

Several other equities analysts have also recently issued reports on the company. Morgan Stanley lowered their price objective on shares of DiamondRock Hospitality from $9.00 to $8.50 and set an “equal weight” rating on the stock in a research report on Wednesday, October 22nd. Weiss Ratings reiterated a “hold (c)” rating on shares of DiamondRock Hospitality in a research report on Wednesday, October 8th. Barclays assumed coverage on DiamondRock Hospitality in a report on Tuesday. They issued an “equal weight” rating and a $10.00 price target for the company. Evercore ISI increased their price objective on DiamondRock Hospitality from $9.00 to $10.00 and gave the stock an “in-line” rating in a research report on Thursday, November 20th. Finally, Wells Fargo & Company boosted their target price on shares of DiamondRock Hospitality from $9.00 to $10.00 and gave the stock an “equal weight” rating in a research report on Monday, December 1st. Two equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $9.61.

Institutional Trading of DiamondRock Hospitality

Several hedge funds and other institutional investors have recently bought and sold shares of the company. State Street Corp grew its stake in 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 worth $97,400,000 after buying an additional 93,929 shares during the period. Bank of America Corp DE boosted its position in DiamondRock Hospitality by 17.5% during the 2nd 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 purchasing an additional 1,377,897 shares during the period. Alyeska Investment Group L.P. increased its holdings in DiamondRock Hospitality by 5.5% in the 3rd 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 in the last quarter. Pzena Investment Management LLC increased its holdings in DiamondRock Hospitality by 2.1% in the 2nd quarter. Pzena Investment Management LLC now owns 8,785,278 shares of the real estate investment trust’s stock valued at $67,295,000 after purchasing an additional 181,610 shares in the last quarter. Finally, Centersquare Investment Management LLC raised its position in 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 during the period.

DiamondRock Hospitality Stock 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 company has a market cap of $1.89 billion, a price-to-earnings ratio of 37.10, a PEG ratio of 4.50 and a beta of 1.03. The stock has a 50 day simple moving average of $8.94 and a 200 day simple moving average of $8.33.

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

DiamondRock Hospitality Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 14th. Investors of record on Wednesday, December 31st will be issued a $0.08 dividend. This represents a $0.32 annualized dividend and a yield of 3.4%. The ex-dividend date of this dividend is Wednesday, December 31st. DiamondRock Hospitality’s payout ratio is currently 128.00%.

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.