DiamondRock Hospitality Company (NYSE:DRH) Given Average Rating of "Hold" by Brokerages

Key Points

• DiamondRock Hospitality Company (NYSE:DRH) has received an average rating of "Hold" from analysts, with a target price of $8.625 among brokerage firms.
• In its latest earnings report, the company surpassed expectations with $0.35 earnings per share, exceeding analysts' consensus of $0.33, despite a 1.2% decline in quarterly revenue compared to the previous year.
• The company declared a quarterly dividend of $0.08 per share, yielding 3.7%, with a payout ratio of over 123%.

DiamondRock Hospitality Company (NYSE:DRH - Get Free Report) has earned an average recommendation of "Hold" from the six research firms that are currently covering the stock, Marketbeat Ratings reports. Five equities research analysts have rated the stock with a hold recommendation and one has assigned a buy recommendation to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $8.6250.

DRH has been the topic of several research reports. Truist Financial cut their target price on DiamondRock Hospitality from $10.00 to $9.00 and set a "hold" rating on the stock in a research report on Friday, May 30th. Wells Fargo & Company upped their target price on DiamondRock Hospitality from $8.25 to $9.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 27th.

Institutional Investors Weigh In On DiamondRock Hospitality

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DRH. Price T Rowe Associates Inc. MD grew its position in DiamondRock Hospitality by 20.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 443,153 shares of the real estate investment trust's stock worth $4,002,000 after purchasing an additional 76,262 shares during the period. The Manufacturers Life Insurance Company grew its position in shares of DiamondRock Hospitality by 16.2% during the 4th quarter. The Manufacturers Life Insurance Company now owns 134,256 shares of the real estate investment trust's stock valued at $1,212,000 after acquiring an additional 18,751 shares during the period. Northern Trust Corp grew its position in shares of DiamondRock Hospitality by 15.6% during the 4th quarter. Northern Trust Corp now owns 3,250,978 shares of the real estate investment trust's stock valued at $29,356,000 after acquiring an additional 438,310 shares during the period. Mercer Global Advisors Inc. ADV grew its position in shares of DiamondRock Hospitality by 32.9% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 63,610 shares of the real estate investment trust's stock valued at $574,000 after acquiring an additional 15,748 shares during the period. Finally, AXA S.A. grew its position in shares of DiamondRock Hospitality by 200.8% during the 4th quarter. AXA S.A. now owns 45,706 shares of the real estate investment trust's stock valued at $413,000 after acquiring an additional 30,512 shares during the period.

DiamondRock Hospitality Stock Up 0.9%

Shares of DRH stock traded up $0.08 during trading hours on Monday, reaching $8.57. 980,516 shares of the company's stock were exchanged, compared to its average volume of 2,635,313. The stock's 50 day moving average is $8.01 and its 200-day moving average is $7.78. The company has a market cap of $1.76 billion, a price-to-earnings ratio of 32.96 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 fifty-two week low of $6.18 and a fifty-two week high of $10.00.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last released its earnings results on Thursday, August 7th. The real estate investment trust reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.33 by $0.02. DiamondRock Hospitality had a return on equity of 4.23% and a net margin of 6.04%.The firm had revenue of $305.70 million for the quarter, compared to the consensus estimate of $303.70 million. During the same period in the prior year, the firm earned $0.34 EPS. The firm's revenue was down 1.2% on a year-over-year basis. DiamondRock Hospitality has set its FY 2025 guidance at 0.960-1.060 EPS. Analysts predict that DiamondRock Hospitality will post 0.96 earnings per share for the current fiscal year.

DiamondRock Hospitality Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 14th. Shareholders of record on Tuesday, September 30th will be given a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a yield of 3.7%. The ex-dividend date of this dividend is Tuesday, September 30th. DiamondRock Hospitality's dividend payout ratio (DPR) is currently 123.08%.

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.