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

Key Points

• DiamondRock Hospitality Company has been assigned an average recommendation of "Hold" from six analysts, with one analyst issuing a buy recommendation and a 12-month price target of $8.6250.
• The company reported $0.35 earnings per share for the recent quarter, surpassing analysts' estimates of $0.33, but its revenue was down 1.2% year-over-year.
• DiamondRock Hospitality has declared a quarterly dividend of $0.08 per share, yielding 4.0% annually, with a payout ratio of 123.08%.

DiamondRock Hospitality Company (NYSE:DRH - Get Free Report) has been assigned an average recommendation of "Hold" from the six analysts that are covering the firm, MarketBeat reports. Five investment analysts have rated the stock with a hold recommendation and one has issued a buy recommendation on the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $8.6250.

A number of brokerages recently issued reports on DRH. Truist Financial dropped their target price on shares of 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 boosted their price target on shares of DiamondRock Hospitality from $8.25 to $9.00 and gave the company an "equal weight" rating in a report on Wednesday, August 27th.

DiamondRock Hospitality Trading Down 0.7%

Shares of DRH stock opened at $8.05 on Friday. DiamondRock Hospitality has a 1 year low of $6.18 and a 1 year high of $10.00. The firm's fifty day simple moving average is $8.13 and its 200 day simple moving average is $7.77. The firm has a market capitalization of $1.65 billion, a P/E ratio of 30.94 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 (NYSE:DRH - Get Free Report) last announced its earnings results on Thursday, August 7th. The real estate investment trust reported $0.35 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.33 by $0.02. DiamondRock Hospitality had a net margin of 6.04% and a return on equity of 4.23%. The business had revenue of $305.70 million for the quarter, compared to analyst estimates of $303.70 million. During the same quarter in the previous year, the firm posted $0.34 earnings per share. DiamondRock Hospitality's revenue was down 1.2% compared to the same quarter last year. DiamondRock Hospitality has set its FY 2025 guidance at 0.960-1.060 EPS. As a group, sell-side analysts predict that DiamondRock Hospitality will post 0.96 EPS for the current year.

DiamondRock Hospitality Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 14th. Shareholders of record on Tuesday, September 30th will be issued a $0.08 dividend. This represents a $0.32 annualized dividend and a yield of 4.0%. The ex-dividend date of this dividend is Tuesday, September 30th. DiamondRock Hospitality's payout ratio is 123.08%.

Institutional Investors Weigh In On DiamondRock Hospitality

Institutional investors and hedge funds have recently bought and sold shares of the business. JPMorgan Chase & Co. boosted its stake in shares of DiamondRock Hospitality by 106.3% in the 2nd quarter. JPMorgan Chase & Co. now owns 5,412,002 shares of the real estate investment trust's stock valued at $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 in the 1st quarter valued at $18,262,000. Deutsche Bank AG boosted its stake in shares of DiamondRock Hospitality by 723.6% in the 1st quarter. Deutsche Bank AG now owns 2,268,828 shares of the real estate investment trust's stock valued at $17,515,000 after purchasing an additional 1,993,345 shares in the last quarter. Bank of America Corp DE lifted its position in DiamondRock Hospitality by 17.5% during the 2nd 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 buying an additional 1,377,897 shares in the last quarter. Finally, H 2 Credit Manager LP lifted its position in DiamondRock Hospitality by 35.6% during the 1st quarter. H 2 Credit Manager LP now owns 5,075,150 shares of the real estate investment trust's stock worth $39,180,000 after buying an additional 1,333,705 shares in the last quarter.

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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