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

Key Points

• DiamondRock Hospitality Company (NYSE:DRH) has received an average rating of "Hold" from research analysts, with six maintaining this stance and one suggesting a buy.
• The company reported a quarterly earnings per share (EPS) of $0.35, exceeding estimates, while its quarterly revenue was down 1.2% year-over-year.
• DiamondRock's quarterly dividend was recently paid at $0.08 per share, yielding 4.1%, with a payout ratio currently at 123.08%.

Shares of DiamondRock Hospitality Company (NYSE:DRH - Get Free Report) have been given an average rating of "Hold" by the seven research firms that are covering the company, Marketbeat reports. Six research analysts have rated the stock with a hold recommendation and one has given a buy recommendation to the company. The average twelve-month price target among brokers that have covered the stock in the last year is $8.6250.

Several analysts recently commented on the company. Wells Fargo & Company raised DiamondRock Hospitality to a "hold" rating in a research note on Friday, October 3rd. Weiss Ratings reissued a "hold (c)" rating on shares of DiamondRock Hospitality in a research note on Wednesday, October 8th.

DiamondRock Hospitality Price Performance

Shares of DRH stock opened at $7.80 on Tuesday. The stock's fifty day simple moving average is $8.12 and its 200 day simple moving average is $7.77. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.30 and a quick ratio of 1.30. The firm has a market cap of $1.60 billion, a price-to-earnings ratio of 29.98 and a beta of 1.38. DiamondRock Hospitality has a one year low of $6.18 and a one year high of $10.00.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The real estate investment trust reported $0.35 EPS for the quarter, beating the consensus estimate of $0.33 by $0.02. The business had revenue of $305.70 million for the quarter, compared to analyst estimates of $303.70 million. DiamondRock Hospitality had a return on equity of 4.23% and a net margin of 6.04%.DiamondRock Hospitality's quarterly revenue was down 1.2% on a year-over-year basis. 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, analysts expect that DiamondRock Hospitality will post 0.96 earnings per share for the current fiscal year.

DiamondRock Hospitality Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, October 14th. Shareholders of record on Tuesday, September 30th were paid a $0.08 dividend. The ex-dividend date of this dividend was Tuesday, September 30th. This represents a $0.32 dividend on an annualized basis and a yield of 4.1%. DiamondRock Hospitality's payout ratio is currently 123.08%.

Hedge Funds Weigh In On DiamondRock Hospitality

Institutional investors and hedge funds have recently bought and sold shares of the business. Allspring Global Investments Holdings LLC boosted its stake in DiamondRock Hospitality by 54.6% in the first quarter. Allspring Global Investments Holdings LLC now owns 91,486 shares of the real estate investment trust's stock worth $705,000 after purchasing an additional 32,298 shares in the last quarter. Cbre Investment Management Listed Real Assets LLC boosted its stake in DiamondRock Hospitality by 66.7% in the first quarter. Cbre Investment Management Listed Real Assets LLC now owns 2,748,875 shares of the real estate investment trust's stock worth $21,221,000 after purchasing an additional 1,100,070 shares in the last quarter. Oppenheimer Asset Management Inc. bought a new stake in shares of DiamondRock Hospitality during the first quarter worth $103,000. Envestnet Asset Management Inc. bought a new stake in shares of DiamondRock Hospitality during the first quarter worth $395,000. Finally, American Century Companies Inc. raised its position in shares of DiamondRock Hospitality by 150.1% during the first quarter. American Century Companies Inc. now owns 132,649 shares of the real estate investment trust's stock worth $1,024,000 after acquiring an additional 79,620 shares during the last quarter.

About DiamondRock Hospitality

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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