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

DiamondRock Hospitality Company (NYSE:DRH)’s share 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 traded. The stock had previously closed at $12.28.

Several other research firms also recently commented on DRH. LADENBURG THALM/SH SH lifted their price objective on DiamondRock Hospitality from $13.00 to $14.00 and gave the stock a “buy” rating in a report on Thursday, June 18th. Barclays increased their target price on DiamondRock Hospitality from $10.00 to $12.00 and gave the company an “equal weight” rating in a report on Monday, June 1st. Truist Financial raised their price target on DiamondRock Hospitality from $11.00 to $12.00 and gave the stock a “buy” rating in a research report on Tuesday, May 26th. Stifel Nicolaus set a $12.25 price target on DiamondRock Hospitality in a research note on Thursday, June 4th. Finally, Citigroup boosted their price objective on DiamondRock Hospitality from $9.50 to $11.00 and gave the company a “neutral” rating in a research report on Wednesday, May 6th. Three research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. Based on data from MarketBeat, DiamondRock Hospitality currently has a consensus rating of “Hold” and an average price target of $11.69.

Insider Activity

In other news, Director Michael A. Hartmeier sold 20,000 shares of the company’s 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 completion of the transaction, the director directly owned 95,354 shares of the company’s stock, valued at approximately $997,402.84. This represents a 17.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Kathleen Merrill sold 20,000 shares of the stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $11.88, for a total transaction of $237,600.00. Following the sale, the director owned 84,335 shares of the company’s stock, valued at approximately $1,001,899.80. This represents a 19.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.90% of the company’s stock.

Hedge Funds Weigh In On DiamondRock Hospitality

Hedge funds have recently made changes to their positions in the business. Hudson Bay Capital Management LP purchased a new position in shares of DiamondRock Hospitality during the 3rd quarter worth approximately $9,098,000. UBS Group AG raised its position in shares of DiamondRock Hospitality by 49.9% in the 4th quarter. UBS Group AG now owns 2,627,787 shares of the real estate investment trust’s stock worth $23,545,000 after acquiring an additional 874,536 shares in the last quarter. SG Americas Securities LLC lifted its stake in shares of DiamondRock Hospitality by 881.7% in the 4th 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 purchasing an additional 1,818,527 shares during the period. Louisiana State Employees Retirement System purchased a new position in shares of DiamondRock Hospitality in the 1st quarter valued at approximately $846,000. Finally, Strs Ohio boosted its position in shares of DiamondRock Hospitality by 300.0% during the first quarter. Strs Ohio now owns 145,600 shares of the real estate investment trust’s stock valued at $1,361,000 after purchasing an additional 109,200 shares in the last quarter.

DiamondRock Hospitality Stock Up 2.2%

The company has a market capitalization 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 50-day moving average of $11.58 and a two-hundred day moving average of $10.35. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 0.70.

DiamondRock Hospitality Announces Dividend

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