Barclays Boosts DiamondRock Hospitality (NYSE:DRH) Price Target to $12.00

Key Points

• Barclays raised its price target on DiamondRock Hospitality (NYSE:DRH) from $10.00 to $12.00 while keeping an equal weight rating, implying about 9.84% upside from the current price.
• Other analysts have also been revising targets upward, including Citigroup, Morgan Stanley, Wells Fargo, and Stifel, with the stock now carrying a consensus Hold rating and an average price target of $11.32.
• DRH shares were down 0.6% to $10.93 in Monday trading, while the company recently beat quarterly EPS estimates and reported revenue slightly above expectations; insiders also sold shares, including a director who reduced holdings by 17.34%.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) had its price target lifted by Barclays from $10.00 to $12.00 in a report released on Monday,Benzinga reports. The firm presently has an "equal weight" rating on the real estate investment trust's stock. Barclays's target price would suggest a potential upside of 9.84% from the company's current price.

A number of other brokerages also recently issued reports on DRH. Citigroup lifted their target price on shares of DiamondRock Hospitality from $9.50 to $11.00 and gave the company a "neutral" rating in a research report on Wednesday, May 6th. Morgan Stanley lifted their target price on shares of DiamondRock Hospitality from $9.50 to $9.60 and gave the company an "equal weight" rating in a research report on Tuesday, May 12th. LADENBURG THALM/SH SH began coverage on shares of DiamondRock Hospitality in a research report on Thursday, March 26th. They set a "buy" rating and a $12.00 target price for the company. Wells Fargo & Company lifted their target price 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. Finally, Stifel Nicolaus lifted their target price on shares of DiamondRock Hospitality from $11.00 to $11.25 and gave the company a "hold" rating in a research report on Monday, May 11th. Three research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $11.32.

DiamondRock Hospitality Stock Down 0.6%

DRH traded down $0.07 during midday trading on Monday, reaching $10.93. 936,094 shares of the company were exchanged, compared to its average volume of 2,317,553. 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's fifty day moving average price is $10.19 and its 200 day moving average price is $9.64. The company has a market cap of $2.23 billion, a price-to-earnings ratio of 43.66, a price-to-earnings-growth ratio of 4.50 and a beta of 0.99. DiamondRock Hospitality has a one year low of $7.39 and a one year high of $11.27.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last issued its quarterly earnings results on Thursday, February 26th. The real estate investment trust reported $0.27 EPS for the quarter, topping analysts' consensus estimates of $0.24 by $0.03. The business had revenue of $274.53 million for the quarter, compared to analyst estimates of $273.18 million. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.DiamondRock Hospitality's quarterly revenue was down 1.6% compared to the same quarter last year. During the same period last year, the company posted $0.24 earnings per share. As a group, analysts expect that DiamondRock Hospitality will post 0.96 EPS for the current year.

Insider Activity

In related news, Director Michael A. Hartmeier sold 20,000 shares of the firm's stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $10.46, for a total value of $209,200.00. Following the sale, the director owned 95,354 shares in the company, valued at approximately $997,402.84. This trade represents a 17.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CAO Steve Spierto sold 4,000 shares of the firm's stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $9.93, for a total transaction 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. This represents a 4.88% decrease in their position. The SEC filing for this sale provides additional information. 0.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On DiamondRock Hospitality

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Bank of America Corp DE boosted its position in DiamondRock Hospitality by 7.2% during the first quarter. Bank of America Corp DE now owns 8,987,338 shares of the real estate investment trust's stock worth $84,211,000 after purchasing an additional 606,962 shares in the last quarter. Janus Henderson Group PLC raised its holdings in shares of DiamondRock Hospitality by 10.1% during the first quarter. Janus Henderson Group PLC now owns 1,312,694 shares of the real estate investment trust's stock valued at $12,299,000 after buying an additional 119,921 shares during the last quarter. Amundi boosted its stake in DiamondRock Hospitality by 30.9% during the 1st quarter. Amundi now owns 191,306 shares of the real estate investment trust's stock valued at $1,793,000 after purchasing an additional 45,198 shares in the last quarter. California State Teachers Retirement System raised its position in shares of DiamondRock Hospitality by 30.2% during the first quarter. California State Teachers Retirement System now owns 249,084 shares of the real estate investment trust's stock worth $2,334,000 after purchasing an additional 57,774 shares during the period. Finally, Quantinno Capital Management LP boosted its position in DiamondRock Hospitality by 43.2% during the 1st quarter. Quantinno Capital Management LP now owns 82,542 shares of the real estate investment trust's stock worth $773,000 after acquiring an additional 24,889 shares during the period.

About DiamondRock Hospitality

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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