DiamondRock Hospitality (NYSE:DRH) Stock Price Target Raised at Morgan Stanley

Key Points

• Morgan Stanley raised DiamondRock Hospitality’s price target from $11 to $12 while maintaining an “equal weight” rating, implying 5.47% downside from the stock’s $12.70 price. The analyst consensus remains “Hold,” with an average target of $12.93.
• DiamondRock reported quarterly earnings of $0.44 per share, beating the $0.22 consensus estimate, while revenue reached $318.29 million and increased 4.1% year over year.
• The stock has traded between $7.47 and $13.79 over the past year, with a market capitalization of about $2.60 billion. Several major institutions, including BlackRock and Bank of America, recently established or expanded positions.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) had its target price boosted by investment analysts at Morgan Stanley from $11.00 to $12.00 in a note issued to investors on Monday, Benzinga reports. The brokerage presently has an "equal weight" rating on the real estate investment trust's stock. Morgan Stanley's price objective suggests a potential downside of 5.47% from the stock's current price.

DRH has been the subject of several other reports. Stifel Nicolaus upped their price objective on DiamondRock Hospitality from $12.50 to $13.25 and gave the stock a "hold" rating in a research note on Friday, July 31st. Bank of America lifted their target price on DiamondRock Hospitality from $12.50 to $13.00 and gave the company a "buy" rating in a research report on Monday, July 20th. Barclays boosted their price target on DiamondRock Hospitality from $12.00 to $14.00 and gave the company an "equal weight" rating in a report on Thursday, August 27th. LADENBURG THALM/SH SH upped their price target on DiamondRock Hospitality from $13.00 to $14.00 and gave the stock a "buy" rating in a research report on Thursday, June 18th. Finally, Truist Financial lifted their price objective on DiamondRock Hospitality from $12.00 to $15.00 and gave the company a "buy" rating in a research report on Thursday, September 10th. Four analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $12.93.

DiamondRock Hospitality Stock Performance

NYSE DRH traded up $0.07 during trading hours on Monday, hitting $12.70. 863,434 shares of the company's stock traded hands, compared to its average volume of 2,467,512. DiamondRock Hospitality has a 52 week low of $7.47 and a 52 week high of $13.79. The firm has a market capitalization of $2.60 billion, a P/E ratio of 50.82, a P/E/G ratio of 4.50 and a beta of 1.01. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 0.70. The business's fifty day moving average price is $12.45 and its two-hundred day moving average price is $11.63.

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, topping the consensus estimate of $0.22 by $0.22. The business had revenue of $318.29 million for the quarter, compared to the consensus estimate of $314.98 million. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The company's quarterly 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. Equities research analysts predict that DiamondRock Hospitality will post 0.96 EPS for the current year.

Institutional Trading of DiamondRock Hospitality

Institutional investors have recently made changes to their positions in the business. BlackRock Inc. bought a new position in shares of DiamondRock Hospitality during the 2nd quarter valued at approximately $475,282,000. Bank of America Corp DE purchased a new stake in DiamondRock Hospitality during the 2nd quarter valued at $129,710,000. SG Americas Securities LLC lifted its position in 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 during the last quarter. Pzena Investment Management LLC bought a new stake in DiamondRock Hospitality in the second quarter worth $34,464,000. Finally, Dimensional Fund Advisors LP lifted its position in DiamondRock Hospitality by 1.3% in the first quarter. Dimensional Fund Advisors LP now owns 2,972,171 shares of the real estate investment trust's stock worth $27,850,000 after buying an additional 37,482 shares during the last quarter.

About DiamondRock Hospitality

DiamondRock Hospitality Company NYSE: DRH is a self-advised real estate investment trust that owns a portfolio of upscale and luxury hotels and resorts in the United States. The company focuses on acquiring, owning and strategically managing lodging properties in major gateway markets, destination resorts and other high-demand locations.

DiamondRock's portfolio includes full-service hotels operating under nationally recognized brands such as Marriott, Hilton and Hyatt, as well as independent and boutique properties.

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