DiamondRock Hospitality (NYSE:DRH) Stock Gets Price Target Boost from Wells Fargo & Company

Key Points

• Wells Fargo raised DiamondRock Hospitality’s price target from $13 to $14 while maintaining an “equal weight” rating, implying roughly 0.19% downside from the prior close.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $13.03; four analysts rate the stock a Buy and seven rate it a Hold.
• DiamondRock shares rose to $14.03, near their 52-week high of $14.10. The company also exceeded quarterly earnings expectations, reporting $0.44 EPS versus the $0.22 consensus estimate and revenue of $318.29 million.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) had its price objective boosted by Wells Fargo & Company from $13.00 to $14.00 in a research report issued on Monday, Benzinga reports. The brokerage currently has an "equal weight" rating on the real estate investment trust's stock. Wells Fargo & Company's target price would indicate a potential downside of 0.19% from the company's previous close.

A number of other equities analysts have also recently commented on DRH. Barclays boosted their price target 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. Stifel Nicolaus raised their price objective on shares of DiamondRock Hospitality from $12.50 to $13.25 and gave the company a "hold" rating in a research report on Friday, July 31st. Morgan Stanley raised 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. Citigroup lifted their price objective on shares of DiamondRock Hospitality from $11.00 to $13.00 and gave the stock a "neutral" rating in a report on Wednesday, July 22nd. Finally, Truist Financial upped their target price on shares of DiamondRock Hospitality from $12.00 to $15.00 and gave the stock a "buy" rating in a research report on Thursday, September 10th. Four research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat.com, DiamondRock Hospitality presently has a consensus rating of "Hold" and an average price target of $13.03.

DiamondRock Hospitality Price Performance

Shares of NYSE:DRH traded up $0.27 on Monday, hitting $14.03. The company's stock had a trading volume of 91,844 shares, compared to its average volume of 2,513,361. The company has a market capitalization of $2.87 billion, a PE ratio of 56.14, a PEG ratio of 4.50 and a beta of 1.01. 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 company has a 50-day simple moving average of $12.61 and a 200 day simple moving average of $11.91. DiamondRock Hospitality has a 1 year low of $7.58 and a 1 year high of $14.10.

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

Institutional Investors Weigh In On DiamondRock Hospitality

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DRH. Gallacher Capital Management LLC increased its position in DiamondRock Hospitality by 5.8% in the 1st quarter. Gallacher Capital Management LLC now owns 27,509 shares of the real estate investment trust's stock valued at $258,000 after acquiring an additional 1,504 shares during the period. Ancora Advisors LLC raised its stake in DiamondRock Hospitality by 0.3% during the 2nd quarter. Ancora Advisors LLC now owns 496,340 shares of the real estate investment trust's stock valued at $6,045,000 after acquiring an additional 1,630 shares during the last quarter. Fifth Third Wealth Advisors LLC raised its stake in DiamondRock Hospitality by 16.1% during the 3rd quarter. Fifth Third Wealth Advisors LLC now owns 12,974 shares of the real estate investment trust's stock valued at $160,000 after acquiring an additional 1,795 shares during the last quarter. Sequoia Financial Advisors LLC raised its stake in DiamondRock Hospitality by 15.8% during the 1st quarter. Sequoia Financial Advisors LLC now owns 16,470 shares of the real estate investment trust's stock valued at $154,000 after acquiring an additional 2,243 shares during the last quarter. Finally, Magnus Financial Group LLC lifted its position in DiamondRock Hospitality by 20.4% during the 3rd quarter. Magnus Financial Group LLC now owns 13,405 shares of the real estate investment trust's stock worth $166,000 after acquiring an additional 2,270 shares during the period.

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.

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