DiamondRock Hospitality Company (NYSE:DRH) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• DiamondRock Hospitality has a “Moderate Buy” consensus rating from 12 analysts: seven rate it a hold, four a buy, and one a strong buy. The average 12-month price target is $12.83, compared with the stock’s recent price of $12.18.
• The REIT exceeded quarterly expectations, reporting $0.44 in EPS versus the $0.22 consensus estimate and revenue of $318.29 million. Revenue increased 4.1% year over year, and fiscal 2026 EPS guidance is $1.18–$1.23.
• DiamondRock raised its quarterly dividend to $0.11 from $0.09, implying an annualized dividend of $0.44 and a 3.6% yield. Major institutional investors, including BlackRock and Bank of America, also recently established significant positions.

Shares of DiamondRock Hospitality Company (NYSE:DRH - Get Free Report) have been given a consensus rating of "Moderate Buy" by the twelve research firms that are covering the firm, Marketbeat.com reports. Seven analysts have rated the stock with a hold rating, four have given a buy rating and one has given a strong buy rating to the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $12.8250.

Several analysts have recently commented on DRH shares. Stifel Nicolaus upped their price objective on shares of DiamondRock Hospitality from $12.50 to $13.25 and gave the company a "hold" rating in a report on Friday, July 31st. Wells Fargo & Company raised their target price on shares of DiamondRock Hospitality from $12.00 to $13.00 and gave the stock an "equal weight" rating in a report on Thursday, July 23rd. Bank of America boosted their target price on shares of DiamondRock Hospitality from $12.50 to $13.00 and gave the company a "buy" rating in a research report on Monday, July 20th. Morgan Stanley upped their price target on shares of DiamondRock Hospitality from $10.00 to $11.00 and gave the company an "equal weight" rating in a report on Tuesday, August 18th. Finally, Zacks Research raised DiamondRock Hospitality from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 19th.

Institutional Trading of DiamondRock Hospitality

Hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. purchased a new stake in DiamondRock Hospitality in the 2nd quarter worth approximately $475,282,000. Bank of America Corp DE acquired a new stake in shares of DiamondRock Hospitality during the 2nd quarter worth approximately $129,710,000. Cohen & Steers Inc. purchased a new position in shares of DiamondRock Hospitality during the 4th quarter valued at approximately $59,231,000. Pzena Investment Management LLC purchased a new position in shares of DiamondRock Hospitality during the 2nd quarter valued at approximately $34,464,000. Finally, California State Teachers Retirement System lifted its stake in shares of DiamondRock Hospitality by 1,086.8% in 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 Stock Up 0.9%

Shares of DRH stock opened at $12.18 on Friday. DiamondRock Hospitality has a fifty-two week low of $7.47 and a fifty-two week high of $13.79. The firm has a market capitalization of $2.49 billion, a PE ratio of 48.72, a P/E/G ratio of 4.50 and a beta of 0.97. 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 stock's 50-day simple moving average is $12.47 and its 200-day simple moving average is $11.23.

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

DiamondRock Hospitality Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 30th will be paid a $0.11 dividend. The ex-dividend date is Wednesday, September 30th. This is a positive change from DiamondRock Hospitality's previous quarterly dividend of $0.09. This represents a $0.44 dividend on an annualized basis and a dividend yield of 3.6%. DiamondRock Hospitality's dividend payout ratio (DPR) is currently 60.27%.

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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