DiamondRock Hospitality (NYSE:DRH) Price Target Raised to $14.00

Key Points

• Barclays raised DiamondRock Hospitality’s price target to $14 from $12 while maintaining an “equal weight” rating, implying roughly 10.3% upside from the reported $12.70 share price.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating and an average target price of $12.53; recent target increases came from Bank of America, Citigroup, Wells Fargo, and Truist Financial.
• DiamondRock reported quarterly EPS of $0.44, beating the $0.22 consensus estimate, while revenue reached $318.29 million and increased 4.1% year over year. Major institutional investors, including BlackRock and Bank of America, also established sizable positions.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) had its price target hoisted by analysts at Barclays from $12.00 to $14.00 in a research note issued to investors on Thursday,Benzinga reports. The firm presently has an "equal weight" rating on the real estate investment trust's stock. Barclays's price objective would indicate a potential upside of 10.28% from the stock's current price.

Other research analysts also recently issued research reports about the company. Bank of America increased their price target on DiamondRock Hospitality from $12.50 to $13.00 and gave the stock a "buy" rating in a research note on Monday, July 20th. Citigroup increased their price objective on DiamondRock Hospitality from $11.00 to $13.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 22nd. Zacks Research raised shares of DiamondRock Hospitality from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 19th. Wells Fargo & Company raised their price target on DiamondRock Hospitality from $12.00 to $13.00 and gave the company an "equal weight" rating in a research report on Thursday, July 23rd. Finally, Truist Financial upped their price objective on DiamondRock Hospitality from $11.00 to $12.00 and gave the stock a "buy" rating in a report on Tuesday, May 26th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $12.53.

DiamondRock Hospitality Stock Up 0.6%

Shares of NYSE:DRH traded up $0.07 during trading on Thursday, reaching $12.70. 263,710 shares of the stock were exchanged, compared to its average volume of 2,359,856. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.64 and a quick ratio of 1.64. The stock has a fifty day moving average of $12.48 and a two-hundred day moving average of $11.04. DiamondRock Hospitality has a 1-year low of $7.47 and a 1-year high of $13.79. The firm has a market cap of $2.60 billion, a price-to-earnings ratio of 50.78, a price-to-earnings-growth ratio of 4.50 and a beta of 0.98.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share for the quarter, beating analysts' consensus estimates of $0.22 by $0.22. The company 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 firm's revenue was up 4.1% on a year-over-year basis. During the same period last year, the firm earned $0.35 earnings per share. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. Research analysts anticipate that DiamondRock Hospitality will post 0.96 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Kathleen Merrill sold 20,000 shares of the company's stock in a transaction on Friday, June 12th. The stock was sold at an average price of $11.88, for a total value of $237,600.00. Following the sale, the director directly owned 84,335 shares of the company's stock, valued at $1,001,899.80. This represents a 19.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On DiamondRock Hospitality

Hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new stake in shares of DiamondRock Hospitality in the second quarter worth $475,282,000. Bank of America Corp DE bought a new position in DiamondRock Hospitality during the 2nd quarter valued at about $129,710,000. Cohen & Steers Inc. purchased a new stake in DiamondRock Hospitality in the fourth quarter worth approximately $59,231,000. Pzena Investment Management LLC bought a new stake in shares of DiamondRock Hospitality in the second quarter worth $34,464,000. Finally, California State Teachers Retirement System grew its stake in shares of DiamondRock Hospitality by 1,086.8% during the 2nd quarter. California State Teachers Retirement System now owns 2,956,025 shares of the real estate investment trust's stock valued at $36,004,000 after purchasing an additional 2,706,941 shares during the period.

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.

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