DiamondRock Hospitality Company (NYSE:DRH) Receives $9.91 Average Target Price from Analysts

DiamondRock Hospitality Company (NYSE:DRH) has been given a consensus rating of “Hold” by the nine analysts that are covering the firm, Marketbeat Ratings reports. Six equities research analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 1-year target price among analysts that have covered the stock in the last year is $9.9063.

Several analysts have issued reports on the stock. Wells Fargo & Company upped their price target on shares of DiamondRock Hospitality from $9.00 to $10.00 and gave the stock an “equal weight” rating in a research report on Monday, December 1st. Barclays assumed coverage on shares of DiamondRock Hospitality in a research note on Tuesday, January 6th. They set an “equal weight” rating and a $10.00 price objective on the stock. Truist Financial upgraded DiamondRock Hospitality from a “hold” rating to a “buy” rating and upped their price objective for the company from $10.00 to $11.00 in a research note on Friday, January 9th. Finally, Deutsche Bank Aktiengesellschaft upgraded DiamondRock Hospitality from a “hold” rating to a “buy” rating and lifted their target price for the stock from $10.00 to $12.00 in a research note on Tuesday, January 13th.

DiamondRock Hospitality Price Performance

NYSE:DRH opened at $9.21 on Friday. DiamondRock Hospitality has a 52-week low of $6.18 and a 52-week high of $10.67. The company has a market cap of $1.88 billion, a P/E ratio of 36.84, a P/E/G ratio of 4.50 and a beta of 0.98. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.64 and a current ratio of 1.64. The stock’s 50-day simple moving average is $9.60 and its 200 day simple moving average is $8.90.

DiamondRock Hospitality (NYSE:DRH) last posted its quarterly earnings results on Thursday, February 26th. The real estate investment trust reported $0.27 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.03. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The firm had revenue of $274.53 million for the quarter, compared to analyst estimates of $273.18 million. During the same quarter in the previous year, the firm earned $0.24 EPS. The business’s quarterly revenue was down 1.6% on a year-over-year basis. DiamondRock Hospitality has set its FY 2026 guidance at 1.090-1.160 EPS. As a group, sell-side analysts forecast that DiamondRock Hospitality will post 0.96 EPS for the current fiscal year.

DiamondRock Hospitality Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, April 14th. Investors of record on Tuesday, March 31st will be issued a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a yield of 3.9%. The ex-dividend date of this dividend is Tuesday, March 31st. This is an increase from DiamondRock Hospitality’s previous quarterly dividend of $0.08. DiamondRock Hospitality’s payout ratio is 81.82%.

Insiders Place Their Bets

In other DiamondRock Hospitality news, CAO Steve Spierto sold 4,000 shares of DiamondRock Hospitality stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $9.93, for a total value of $39,720.00. Following the completion of the sale, the chief accounting officer owned 77,977 shares in the company, valued at $774,311.61. The trade was a 4.88% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 1.40% of the stock is owned by insiders.

Institutional Investors Weigh In On DiamondRock Hospitality

A number of large investors have recently added to or reduced their stakes in the stock. Cohen & Steers Inc. acquired a new position in DiamondRock Hospitality in the 4th quarter valued at $59,231,000. JPMorgan Chase & Co. increased its position in shares of DiamondRock Hospitality by 106.3% in the second quarter. JPMorgan Chase & Co. now owns 5,412,002 shares of the real estate investment trust’s stock worth $41,456,000 after purchasing an additional 2,788,022 shares during the period. Healthcare of Ontario Pension Plan Trust Fund increased its position in shares of DiamondRock Hospitality by 907.2% in 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 purchasing an additional 2,064,760 shares during the period. 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 purchasing an additional 1,818,527 shares in the last quarter. Finally, Qube Research & Technologies Ltd raised its stake in DiamondRock Hospitality by 469.0% in 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 in the last quarter.

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.