DiamondRock Hospitality Company (NYSE:DRH) Stock Has Average Price Target of $13.03

Key Points

• DiamondRock Hospitality has a consensus “Hold” rating from 11 brokerages: seven rate it Hold and four rate it Buy. The average 12-month price target is $13.03, below the reported share price of $14.25.
• Several analysts raised their price targets, including Wells Fargo and Barclays to $14, while maintaining neutral or equal-weight ratings; Zacks Research downgraded the stock from Strong Buy to Hold.
• Institutional interest increased, with BlackRock, Bank of America, Pzena Investment Management, Bank of New York Mellon, and Deutsche Bank among firms acquiring new stakes. DiamondRock also exceeded quarterly EPS expectations, reporting $0.44 versus the $0.22 consensus estimate.

Shares of DiamondRock Hospitality Company (NYSE:DRH - Get Free Report) have been given a consensus recommendation of "Hold" by the eleven brokerages that are presently covering the company, Marketbeat.com reports. Seven research analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 1-year price target among brokerages that have covered the stock in the last year is $13.03.

Several equities analysts recently issued reports on DRH shares. Zacks Research cut DiamondRock Hospitality from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 28th. Stifel Nicolaus boosted their target price on shares of DiamondRock Hospitality from $12.50 to $13.25 and gave the company a "hold" rating in a research note on Friday, July 31st. Citigroup increased their target price 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. Wells Fargo & Company raised their price target on shares of DiamondRock Hospitality from $13.00 to $14.00 and gave the stock an "equal weight" rating in a research report on Monday, October 26th. Finally, Barclays lifted their price target on shares of DiamondRock Hospitality from $12.00 to $14.00 and gave the company an "equal weight" rating in a report on Thursday, August 27th.

Institutional Investors Weigh In On DiamondRock Hospitality

A number of hedge funds have recently added to or reduced their stakes in DRH. BlackRock Inc. acquired a new position in shares of DiamondRock Hospitality in the 2nd quarter valued at about $475,282,000. Bank of America Corp DE acquired a new stake in shares of DiamondRock Hospitality during the 2nd quarter valued at $129,710,000. Pzena Investment Management LLC acquired a new stake in shares of DiamondRock Hospitality during the 2nd quarter valued at $34,464,000. Bank of New York Mellon Corp purchased a new position in shares of DiamondRock Hospitality during the 2nd quarter valued at $19,809,000. Finally, Deutsche Bank AG acquired a new position in shares of DiamondRock Hospitality in the second quarter worth $19,036,000.

DiamondRock Hospitality Stock Performance

Shares of NYSE:DRH opened at $14.25 on Friday. The company has a market cap of $2.92 billion, a P/E ratio of 57.00, a PEG ratio of 4.50 and a beta of 1.01. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.64 and a current ratio of 1.64. DiamondRock Hospitality has a one year low of $7.58 and a one year high of $14.57. The business's 50-day simple moving average is $12.78 and its 200 day simple moving average is $11.30.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.22 by $0.22. The company had revenue of $318.29 million for the quarter, compared to analyst estimates of $314.98 million. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The business's quarterly revenue was up 4.1% on a year-over-year basis. During the same quarter last year, the firm posted $0.35 earnings per share. On average, sell-side analysts forecast that DiamondRock Hospitality will post 0.96 earnings per share for the current fiscal year.

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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