DiamondRock Hospitality Company (NYSE:DRH) Announces $0.08 Quarterly Dividend

Key Points

• DiamondRock Hospitality Company has declared a quarterly dividend of $0.08 per share, payable on October 14th to investors of record by September 30th, representing an annual yield of 4.0%.
• The company reported earnings of $0.35 per share for the latest quarter, exceeding expectations, with a total revenue of $305.70 million, which is slightly down 1.2% year-over-year.
• Institutional investors have increased their stakes significantly, with JPMorgan Chase & Co. boosting its ownership by over 106%, signifying strong investor interest in the real estate investment trust.

DiamondRock Hospitality Company (NYSE:DRH - Get Free Report) declared a quarterly dividend on Thursday, August 7th. Investors of record on Tuesday, September 30th will be given a dividend of 0.08 per share by the real estate investment trust on Tuesday, October 14th. This represents a c) annualized dividend and a yield of 4.0%. The ex-dividend date of this dividend is Tuesday, September 30th.

DiamondRock Hospitality has a dividend payout ratio of 71.1% meaning its dividend is sufficiently covered by earnings. Research analysts expect DiamondRock Hospitality to earn $1.02 per share next year, which means the company should continue to be able to cover its $0.32 annual dividend with an expected future payout ratio of 31.4%.

DiamondRock Hospitality Stock Performance

Shares of DRH stock traded up $0.06 during trading hours on Friday, hitting $8.10. The company's stock had a trading volume of 2,495,917 shares, compared to its average volume of 2,816,486. The company has a 50 day moving average of $8.13 and a 200 day moving average of $7.77. The stock has a market cap of $1.66 billion, a PE ratio of 31.14 and a beta of 1.39. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.64. DiamondRock Hospitality has a 12-month low of $6.18 and a 12-month high of $10.00.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The real estate investment trust reported $0.35 earnings per share for the quarter, topping the consensus estimate of $0.33 by $0.02. The business had revenue of $305.70 million during the quarter, compared to the consensus estimate of $303.70 million. DiamondRock Hospitality had a net margin of 6.04% and a return on equity of 4.23%. The company's revenue was down 1.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.34 EPS. DiamondRock Hospitality has set its FY 2025 guidance at 0.960-1.060 EPS. On average, sell-side analysts forecast that DiamondRock Hospitality will post 0.96 EPS for the current fiscal year.

Hedge Funds Weigh In On DiamondRock Hospitality

A number of institutional investors and hedge funds have recently modified their holdings of DRH. JPMorgan Chase & Co. increased its stake in shares of DiamondRock Hospitality by 106.3% during the second quarter. JPMorgan Chase & Co. now owns 5,412,002 shares of the real estate investment trust's stock worth $41,456,000 after purchasing an additional 2,788,022 shares in the last quarter. Nuveen LLC acquired a new stake in shares of DiamondRock Hospitality during the 1st quarter valued at $18,262,000. Deutsche Bank AG increased its position in DiamondRock Hospitality by 723.6% during the first quarter. Deutsche Bank AG now owns 2,268,828 shares of the real estate investment trust's stock worth $17,515,000 after buying an additional 1,993,345 shares during the last quarter. Bank of America Corp DE lifted its stake in DiamondRock Hospitality by 17.5% during the second quarter. Bank of America Corp DE now owns 9,231,991 shares of the real estate investment trust's stock worth $70,717,000 after purchasing an additional 1,377,897 shares during the period. Finally, H 2 Credit Manager LP grew its holdings in shares of DiamondRock Hospitality by 35.6% in the 1st quarter. H 2 Credit Manager LP now owns 5,075,150 shares of the real estate investment trust's stock valued at $39,180,000 after buying an additional 1,333,705 shares during the period.

DiamondRock Hospitality Company Profile

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels with over 9,700 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment.

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