DiamondRock Hospitality (NYSE:DRH) Cut to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded DiamondRock Hospitality from “strong buy” to “hold,” while the broader analyst consensus is also “hold,” with an average price target of $12.82.
• DiamondRock opened at $12.47, near its 50-day average of $12.52, with a 52-week range of $7.47 to $13.79 and a market capitalization of approximately $2.55 billion.
• The hotel REIT reported quarterly EPS of $0.44, beating the $0.22 analyst consensus, while revenue reached $318.29 million, up 4.1% year over year.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) was downgraded by Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Monday, Zacks reports.

DRH has been the subject of a number of other reports. Truist Financial boosted their price objective on DiamondRock Hospitality from $12.00 to $15.00 and gave the company a "buy" rating in a research note on Thursday, September 10th. Barclays raised their target price on shares of DiamondRock Hospitality from $12.00 to $14.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 27th. Bank of America lifted their price target on shares of DiamondRock Hospitality from $12.50 to $13.00 and gave the company a "buy" rating in a report on Monday, July 20th. Stifel Nicolaus upped their price target 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. Finally, Citigroup increased their price objective on shares of DiamondRock Hospitality from $11.00 to $13.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 22nd. Four analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $12.82.

DiamondRock Hospitality Price Performance

NYSE DRH opened at $12.47 on Monday. The business's fifty day moving average is $12.52 and its 200 day moving average is $11.45. DiamondRock Hospitality has a fifty-two week low of $7.47 and a fifty-two week high of $13.79. 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 company has a market capitalization of $2.55 billion, a PE ratio of 49.88, a price-to-earnings-growth ratio of 4.50 and a beta of 0.97.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.22 by $0.22. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The business had revenue of $318.29 million during the quarter, compared to analysts' expectations of $314.98 million. During the same quarter in the prior year, the business posted $0.35 earnings per share. The business's quarterly revenue was up 4.1% on a year-over-year basis. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. Sell-side analysts predict that DiamondRock Hospitality will post 0.96 earnings per share for the current year.

Institutional Trading of DiamondRock Hospitality

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new position in DiamondRock Hospitality in the 2nd quarter worth approximately $475,282,000. Bank of America Corp DE bought a new stake in shares of DiamondRock Hospitality during the second quarter valued at approximately $129,710,000. Centersquare Investment Management LLC raised its position in shares of DiamondRock Hospitality by 3.2% during the fourth quarter. Centersquare Investment Management LLC now owns 7,780,988 shares of the real estate investment trust's stock valued at $69,718,000 after buying an additional 244,013 shares during the last quarter. Cohen & Steers Inc. purchased a new position in shares of DiamondRock Hospitality in the fourth quarter worth $59,231,000. Finally, SG Americas Securities LLC lifted its holdings in shares of DiamondRock Hospitality by 106.1% in 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 buying an additional 2,147,881 shares in the last quarter.

DiamondRock Hospitality Company Profile

DiamondRock Hospitality Company NYSE: DRH is a self-advised real estate investment trust that owns a portfolio of hotels and resorts in the United States. The company focuses on lodging properties in locations that appeal to business and leisure travelers, including gateway cities, destination resorts and other high-demand markets.

DiamondRock's properties operate under a combination of nationally recognized hotel brands and independent or company-developed concepts. Its portfolio includes full-service hotels, lifestyle properties and resort accommodations, with services such as guest rooms, restaurants, meeting and event facilities, recreational amenities and other hospitality offerings.

The company was formed in 2004 through a spin-off from Marriott International and is headquartered in Bethesda, Maryland.

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