DiamondRock Hospitality Company (NYSE:DRH) Stock Now Rated "Hold" by Sell-Side Analysts

Key Points

• DiamondRock Hospitality has a consensus “Hold” rating from 12 analysts: eight recommend holding and four recommend buying. The average 12-month price target is $12.82, compared with the stock’s cited price of $12.42.
• The company exceeded quarterly expectations, reporting $0.44 in EPS versus the $0.22 consensus estimate and revenue of $318.29 million, up 4.1% year over year.
• DiamondRock increased its quarterly dividend from $0.09 to $0.11 per share, implying an annualized dividend of $0.44 and a 3.5% yield.

DiamondRock Hospitality Company (NYSE:DRH - Get Free Report) has earned a consensus rating of "Hold" from the twelve research firms that are presently covering the firm, Marketbeat Ratings reports. Eight analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average twelve-month target price among brokers that have issued a report on the stock in the last year is $12.82.

Several analysts have recently commented on the stock. LADENBURG THALM/SH SH upped their price objective on shares of DiamondRock Hospitality from $13.00 to $14.00 and gave the company a "buy" rating in a report on Thursday, June 18th. Citigroup raised 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. 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. Stifel Nicolaus increased their price target on DiamondRock Hospitality from $12.50 to $13.25 and gave the stock a "hold" rating in a research report on Friday, July 31st. Finally, Zacks Research downgraded DiamondRock Hospitality from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 28th.

DiamondRock Hospitality Stock Performance

DRH stock opened at $12.42 on Tuesday. The firm has a market cap of $2.54 billion, a price-to-earnings ratio of 49.68, a PEG ratio of 4.50 and a beta of 1.01. The firm has a 50-day simple moving average of $12.49 and a two-hundred day simple moving average of $11.54. DiamondRock Hospitality has a one year low of $7.47 and a one year high of $13.79. 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 (NYSE:DRH - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.22 by $0.22. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The business had revenue of $318.29 million for the quarter, compared to the consensus estimate of $314.98 million. During the same period in the prior year, the firm posted $0.35 earnings per share. The business's quarterly revenue was up 4.1% on a year-over-year basis. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. On average, equities analysts forecast that DiamondRock Hospitality will post 0.96 EPS for the current fiscal year.

DiamondRock Hospitality Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 30th will be given a dividend of $0.11 per share. This is an increase from DiamondRock Hospitality's previous quarterly dividend of $0.09. This represents a $0.44 annualized dividend and a yield of 3.5%. The ex-dividend date is Wednesday, September 30th. DiamondRock Hospitality's dividend payout ratio (DPR) is 60.27%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of DRH. BlackRock Inc. purchased a new position in DiamondRock Hospitality in the 2nd quarter valued at approximately $475,282,000. Bank of America Corp DE acquired a new position in shares of DiamondRock Hospitality in the second quarter worth $129,710,000. Cohen & Steers Inc. purchased a new stake in shares of DiamondRock Hospitality during the fourth quarter worth $59,231,000. Pzena Investment Management LLC purchased a new stake in shares of DiamondRock Hospitality during the second quarter worth $34,464,000. Finally, SG Americas Securities LLC raised its stake in shares of 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 valued at $39,098,000 after acquiring an additional 2,147,881 shares in the last quarter.

DiamondRock Hospitality Company Profile

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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