DiamondRock Hospitality (NYSE:DRH) Hits New 12-Month High Following Analyst Upgrade

DiamondRock Hospitality Company (NYSE:DRH)’s stock price reached 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, up from their previous price target of $10.00. 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.

Other equities analysts also recently issued research reports about the stock. Barclays started coverage on shares of DiamondRock Hospitality in a research note on Tuesday, January 6th. They issued an “equal weight” rating and a $10.00 price objective for the company. Morgan Stanley cut their price target on DiamondRock Hospitality from $9.00 to $8.50 and set an “equal weight” rating on the stock in a report on Wednesday, October 22nd. Evercore ISI upped their price objective on DiamondRock Hospitality from $9.00 to $10.00 and gave the stock an “in-line” rating in a research note on Thursday, November 20th. Wells Fargo & Company raised their price objective on DiamondRock Hospitality from $9.00 to $10.00 and gave the company an “equal weight” rating in a research report on Monday, December 1st. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of DiamondRock Hospitality in a report on Wednesday, October 8th. Two investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $9.61.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. SG Americas Securities LLC raised its stake in DiamondRock Hospitality by 881.7% in the fourth quarter. SG Americas Securities LLC now owns 2,024,790 shares of the real estate investment trust’s stock valued at $18,142,000 after buying an additional 1,818,527 shares during the last quarter. Wealth Enhancement Advisory Services LLC increased its holdings in shares of DiamondRock Hospitality by 29.3% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 55,531 shares of the real estate investment trust’s stock valued at $512,000 after acquiring an additional 12,596 shares in the last quarter. JPMorgan Chase & Co. raised its position in shares of DiamondRock Hospitality by 1.6% in the 3rd quarter. JPMorgan Chase & Co. now owns 5,500,337 shares of the real estate investment trust’s stock valued at $43,783,000 after purchasing an additional 88,335 shares during the last quarter. Tudor Investment Corp ET AL acquired a new stake in DiamondRock Hospitality in the 3rd quarter worth approximately $450,000. Finally, Hudson Bay Capital Management LP purchased a new stake in DiamondRock Hospitality during the 3rd quarter worth approximately $9,098,000.

DiamondRock Hospitality Stock Performance

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 company has a market cap of $1.88 billion, a PE ratio of 37.00, a P/E/G ratio of 4.50 and a beta of 1.03. The firm’s 50-day simple moving average is $8.97 and its two-hundred day simple moving average is $8.34.

DiamondRock Hospitality (NYSE:DRH) last posted its quarterly earnings data on Thursday, November 6th. The real estate investment trust reported $0.29 EPS for the quarter, topping 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 revenue for the quarter was up .1% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.27 earnings per share. DiamondRock Hospitality has set its FY 2025 guidance at 1.020-1.06 EPS. As a group, research analysts anticipate that DiamondRock Hospitality Company will post 0.96 earnings per share for the current fiscal year.

DiamondRock Hospitality Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, January 14th. Shareholders of record on Wednesday, December 31st will be paid a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a yield of 3.5%. The ex-dividend date is Wednesday, December 31st. DiamondRock Hospitality’s payout ratio is presently 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.