DiamondRock Hospitality (NYSE:DRH) Sets New 52-Week High – Should You Buy?

DiamondRock Hospitality Company (NYSE:DRH)’s share price hit a new 52-week high during trading on Wednesday . The company traded as high as $12.05 and last traded at $12.02, with a volume of 1374024 shares. The stock had previously closed at $11.94.

Analyst Upgrades and Downgrades

Several analysts have issued reports on DRH shares. Wells Fargo & Company boosted their price target on DiamondRock Hospitality from $11.00 to $12.00 and gave the company an “equal weight” rating in a report on Monday, June 1st. LADENBURG THALM/SH SH started coverage on DiamondRock Hospitality in a research note on Thursday, March 26th. They issued a “buy” rating and a $12.00 price objective on the stock. Barclays boosted their price objective on DiamondRock Hospitality from $10.00 to $12.00 and gave the company an “equal weight” rating in a research note on Monday, June 1st. Citigroup increased their target price on shares of DiamondRock Hospitality from $9.50 to $11.00 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. Finally, Truist Financial raised their target price on shares of DiamondRock Hospitality from $11.00 to $12.00 and gave the stock a “buy” rating in a research note on Tuesday, May 26th. Three equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $11.43.

DiamondRock Hospitality Price Performance

The firm has a 50-day moving average of $10.71 and a 200-day moving average of $9.86. The stock has a market cap of $2.46 billion, a PE ratio of 48.08, a PEG ratio of 4.50 and a beta of 1.00. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.64 and a quick ratio of 1.64.

DiamondRock Hospitality Announces Dividend

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 $0.09 dividend. This represents a $0.36 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend is Tuesday, June 30th. DiamondRock Hospitality’s payout ratio is 76.60%.

Insiders Place Their Bets

In other DiamondRock Hospitality news, Director Kathleen Merrill sold 20,000 shares of the business’s stock in a transaction on Friday, June 12th. The shares were sold at an average price of $11.88, for a total value of $237,600.00. Following the sale, the director owned 84,335 shares in the company, valued at $1,001,899.80. The trade was a 19.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, 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 transaction, the director directly owned 95,354 shares of the company’s stock, valued at $997,402.84. This trade represents a 17.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.90% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On DiamondRock Hospitality

Several large investors have recently made changes to their positions in the company. Cohen & Steers Inc. bought a new position in shares of DiamondRock Hospitality in the 4th quarter valued at about $59,231,000. SG Americas Securities LLC increased its stake in DiamondRock Hospitality by 106.1% during the first quarter. SG Americas Securities LLC now owns 4,172,671 shares of the real estate investment trust’s stock worth $39,098,000 after acquiring an additional 2,147,881 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund increased its stake in DiamondRock Hospitality by 907.2% during the fourth quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 2,292,360 shares of the real estate investment trust’s stock worth $20,540,000 after acquiring an additional 2,064,760 shares during the last quarter. Qube Research & Technologies Ltd raised its position in DiamondRock Hospitality by 469.0% during the third quarter. Qube Research & Technologies Ltd now owns 2,002,863 shares of the real estate investment trust’s stock valued at $15,943,000 after purchasing an additional 1,650,871 shares during the period. Finally, Bank of America Corp DE raised its position in DiamondRock Hospitality by 17.5% during the second quarter. Bank of America Corp DE now owns 9,231,991 shares of the real estate investment trust’s stock valued at $70,717,000 after purchasing an additional 1,377,897 shares during the period.

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.