DiamondRock Hospitality (NYSE:DRH) Hits New 52-Week High Following Analyst Upgrade

DiamondRock Hospitality Company (NYSE:DRH)’s stock price reached a new 52-week high on Friday after Morgan Stanley raised their price target on the stock from $9.60 to $10.00. Morgan Stanley currently has an equal weight rating on the stock. DiamondRock Hospitality traded as high as $12.56 and last traded at $12.55, with a volume of 3048503 shares. The stock had previously closed at $12.28.

Several other equities research analysts also recently issued reports on the stock. Citigroup raised their price objective on shares of DiamondRock Hospitality from $9.50 to $11.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 6th. Wells Fargo & Company increased their target price on DiamondRock Hospitality from $11.00 to $12.00 and gave the stock an “equal weight” rating in a research note on Monday, June 1st. Stifel Nicolaus set a $12.25 price target on DiamondRock Hospitality in a report on Thursday, June 4th. LADENBURG THALM/SH SH increased their target price on shares of DiamondRock Hospitality from $13.00 to $14.00 and gave the stock a “buy” rating in a report on Thursday, June 18th. Finally, Truist Financial lifted their price target 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. Three equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $11.69.

Insider Activity

In other news, Director Kathleen Merrill sold 20,000 shares of the company’s stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $11.88, for a total value of $237,600.00. Following the completion of the transaction, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 value of $209,200.00. Following the transaction, the director owned 95,354 shares in the company, valued at $997,402.84. This trade represents a 17.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.90% of the company’s stock.

Institutional Trading of DiamondRock Hospitality

Several institutional investors and hedge funds have recently bought and sold shares of DRH. Cohen & Steers Inc. purchased a new stake in DiamondRock Hospitality in the fourth quarter worth approximately $59,231,000. SG Americas Securities LLC lifted its holdings in shares of DiamondRock Hospitality by 106.1% during 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 during the period. Healthcare of Ontario Pension Plan Trust Fund lifted its holdings in shares of DiamondRock Hospitality by 907.2% during the 4th quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 2,292,360 shares of the real estate investment trust’s stock valued at $20,540,000 after buying an additional 2,064,760 shares during the period. Qube Research & Technologies Ltd boosted its stake in shares of DiamondRock Hospitality by 469.0% in the 3rd quarter. Qube Research & Technologies Ltd now owns 2,002,863 shares of the real estate investment trust’s stock worth $15,943,000 after buying an additional 1,650,871 shares during the last quarter. Finally, Bank of America Corp DE boosted its stake in shares of DiamondRock Hospitality by 17.5% in 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 buying an additional 1,377,897 shares during the last quarter.

DiamondRock Hospitality Stock Up 2.2%

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 $2.57 billion, a P/E ratio of 50.20, a price-to-earnings-growth ratio of 4.50 and a beta of 0.98. The company has a fifty day moving average of $11.54 and a 200 day moving average of $10.33.

DiamondRock Hospitality Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 14th. Stockholders of record on Tuesday, June 30th were given a dividend of $0.09 per share. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $0.36 annualized dividend and a dividend yield of 2.9%. DiamondRock Hospitality’s dividend payout ratio is presently 76.60%.

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.