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

Shares of DiamondRock Hospitality Company (NYSE:DRH) hit a new 52-week high on Monday after Wells Fargo & Company raised their price target on the stock from $13.00 to $14.00. Wells Fargo & Company currently has an equal weight rating on the stock. DiamondRock Hospitality traded as high as $14.10 and last traded at $14.0050, with a volume of 162,641 shares. The stock had previously closed at $13.76.

A number of other brokerages also recently issued reports on DRH. Stifel Nicolaus upped their price objective on shares of DiamondRock Hospitality from $12.50 to $13.25 and gave the stock a “hold” rating in a research report on Friday, July 31st. Truist Financial raised their price objective on shares of DiamondRock Hospitality from $12.00 to $15.00 and gave the company a “buy” rating in a research report on Thursday, September 10th. Bank of America lifted their price objective on DiamondRock Hospitality from $12.50 to $13.00 and gave the stock a “buy” rating in a report on Monday, July 20th. Barclays boosted their price target on shares of DiamondRock Hospitality from $12.00 to $14.00 and gave the company an “equal weight” rating in a research report on Thursday, August 27th. Finally, Morgan Stanley increased their price objective on shares of DiamondRock Hospitality from $11.00 to $12.00 and gave the company an “equal weight” rating in a research report on Monday, October 12th. Four investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $13.03.

Hedge Funds Weigh In On DiamondRock Hospitality

Several hedge funds have recently bought and sold shares of DRH. BlackRock Inc. bought a new position in DiamondRock Hospitality in the 2nd quarter worth about $475,282,000. Bank of America Corp DE acquired a new position in shares of DiamondRock Hospitality in the second quarter valued at about $129,710,000. Dimensional Fund Advisors LP raised its holdings in shares of DiamondRock Hospitality by 1.3% during the first quarter. Dimensional Fund Advisors LP now owns 2,972,171 shares of the real estate investment trust’s stock worth $27,850,000 after purchasing an additional 37,482 shares during the last quarter. Pzena Investment Management LLC acquired a new position in DiamondRock Hospitality in the second quarter valued at approximately $34,464,000. Finally, Arrowstreet Capital Limited Partnership grew its position in shares of DiamondRock Hospitality by 4.0% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,412,052 shares of the real estate investment trust’s stock valued at $22,601,000 after acquiring an additional 91,672 shares during the period.

DiamondRock Hospitality Stock Performance

The company has a market cap of $2.87 billion, a PE ratio of 56.10, a price-to-earnings-growth ratio of 4.50 and a beta of 1.01. The firm’s fifty day moving average is $12.61 and its 200 day moving average is $11.91. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 0.70.

DiamondRock Hospitality (NYSE:DRH) last released its earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share for the quarter, topping analysts’ consensus estimates of $0.22 by $0.22. The business had revenue of $318.29 million for the quarter, compared to analyst estimates of $314.98 million. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The business’s revenue was up 4.1% on a year-over-year basis. During the same period last year, the company posted $0.35 EPS. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. As a group, research analysts predict that DiamondRock Hospitality Company will post 0.96 EPS for the current fiscal 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 issued a $0.11 dividend. This is an increase from DiamondRock Hospitality’s previous quarterly dividend of $0.09. The ex-dividend date was Wednesday, September 30th. This represents a $0.44 annualized dividend and a yield of 3.1%. DiamondRock Hospitality’s payout ratio is presently 60.27%.

About DiamondRock Hospitality

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.