Citigroup Forecasts Strong Price Appreciation for DiamondRock Hospitality (NYSE:DRH) Stock

Key Points

• Citigroup raised its price target on DiamondRock Hospitality from $9.50 to $11 while keeping a "neutral" rating, implying only about a 3.1% upside from the current price.
• Analyst coverage is mixed: three recent Buy ratings versus six Holds leave a MarketBeat consensus rating of Hold with a consensus target of $10.81, and some firms (Deutsche Bank, LADENBURG) set targets up to $12.
• Shares trade near $10.67 (market cap ~$2.18B) after a quarterly EPS beat ($0.27 vs. $0.24); management guided FY2026 EPS to $1.090–$1.160, while the stock carries a high P/E of about 42.7.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) had its price target raised by investment analysts at Citigroup from $9.50 to $11.00 in a report issued on Wednesday,Benzinga reports. The brokerage currently has a "neutral" rating on the real estate investment trust's stock. Citigroup's price target would indicate a potential upside of 3.14% from the company's current price.

DRH has been the subject of several other research reports. Deutsche Bank Aktiengesellschaft upgraded shares of DiamondRock Hospitality from a "hold" rating to a "buy" rating and increased their target price for the company from $10.00 to $12.00 in a research note on Tuesday, January 13th. Truist Financial upgraded shares of DiamondRock Hospitality from a "hold" rating to a "buy" rating and increased their target price for the company from $10.00 to $11.00 in a research note on Friday, January 9th. Wells Fargo & Company increased their target price on shares of DiamondRock Hospitality from $10.00 to $11.00 and gave the company an "equal weight" rating in a research note on Wednesday, April 22nd. Barclays initiated coverage on shares of DiamondRock Hospitality in a research note on Tuesday, January 6th. They set an "equal weight" rating and a $10.00 price target for the company. Finally, LADENBURG THALM/SH SH initiated coverage on shares of DiamondRock Hospitality in a research note on Thursday, March 26th. They set a "buy" rating and a $12.00 price target for the company. Three research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $10.81.

DiamondRock Hospitality Stock Performance

Shares of NYSE DRH traded up $0.03 during mid-day trading on Wednesday, hitting $10.67. The company had a trading volume of 1,069,796 shares, compared to its average volume of 2,414,779. 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 business's 50-day simple moving average is $9.84 and its 200-day simple moving average is $9.29. DiamondRock Hospitality has a 12 month low of $7.31 and a 12 month high of $10.89. The firm has a market cap of $2.18 billion, a P/E ratio of 42.66, a PEG ratio of 4.50 and a beta of 0.99.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last released its earnings results on Thursday, February 26th. The real estate investment trust reported $0.27 earnings per share for the quarter, beating the consensus estimate of $0.24 by $0.03. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The business had revenue of $274.53 million during the quarter, compared to analysts' expectations of $273.18 million. During the same quarter last year, the company earned $0.24 earnings per share. The firm's revenue was down 1.6% on a year-over-year basis. DiamondRock Hospitality has set its FY 2026 guidance at 1.090-1.160 EPS. As a group, analysts predict that DiamondRock Hospitality will post 0.96 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other DiamondRock Hospitality news, CAO Steve Spierto sold 4,000 shares of the company's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $9.93, for a total value of $39,720.00. Following the sale, the chief accounting officer directly owned 77,977 shares in the company, valued at $774,311.61. This represents a 4.88% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. First Horizon Corp boosted its holdings in shares of DiamondRock Hospitality by 54.9% in the 4th quarter. First Horizon Corp now owns 3,214 shares of the real estate investment trust's stock worth $29,000 after acquiring an additional 1,139 shares in the last quarter. ProShare Advisors LLC increased its position in DiamondRock Hospitality by 3.1% in the 4th quarter. ProShare Advisors LLC now owns 40,041 shares of the real estate investment trust's stock valued at $359,000 after acquiring an additional 1,203 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its position in shares of DiamondRock Hospitality by 32.5% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,990 shares of the real estate investment trust's stock worth $54,000 after purchasing an additional 1,470 shares in the last quarter. EverSource Wealth Advisors LLC lifted its position in shares of DiamondRock Hospitality by 77.3% during the fourth quarter. EverSource Wealth Advisors LLC now owns 3,436 shares of the real estate investment trust's stock worth $31,000 after purchasing an additional 1,498 shares in the last quarter. Finally, Gallacher Capital Management LLC increased its holdings in shares of DiamondRock Hospitality by 5.8% in the first quarter. Gallacher Capital Management LLC now owns 27,509 shares of the real estate investment trust's stock valued at $258,000 after purchasing an additional 1,504 shares in the last quarter.

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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