Brokerages Set DiamondRock Hospitality Company (NYSE:DRH) PT at $8.50

Key Points

• DiamondRock Hospitality Company (NYSE:DRH) has received an average recommendation of "Hold" from six analysts, with five holding and one issuing a buy rating.
• The company recently cut its dividend to $0.08 per share, resulting in a payout ratio of 177.78% and a dividend yield of 420.0%.
• Recent adjustments to price targets from various analysts have varied from $7.00 to $10.00, reflecting differing outlooks on the stock's potential performance.

DiamondRock Hospitality Company (NYSE:DRH - Get Free Report) has been assigned an average recommendation of "Hold" from the six research firms that are presently covering the firm, Marketbeat Ratings reports. Five analysts have rated the stock with a hold rating and one has given a buy rating to the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $8.50.

A number of brokerages have recently commented on DRH. Truist Financial cut their price objective 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. Morgan Stanley dropped their price target on shares of DiamondRock Hospitality from $9.00 to $7.00 and set an "equal weight" rating on the stock in a research report on Tuesday, April 22nd. Stifel Nicolaus upped their price target on shares of DiamondRock Hospitality from $8.00 to $8.25 and gave the stock a "hold" rating in a research report on Friday, May 2nd. Evercore ISI decreased their price objective on shares of DiamondRock Hospitality from $10.00 to $9.00 and set an "in-line" rating on the stock in a report on Monday, April 28th. Finally, Wells Fargo & Company upgraded shares of DiamondRock Hospitality from a "strong sell" rating to a "hold" rating and upped their price target for the company from $7.75 to $8.25 in a research note on Tuesday, July 1st.

DiamondRock Hospitality Stock Down 1.2%

Shares of DiamondRock Hospitality stock traded down $0.09 on Thursday, hitting $7.60. The company had a trading volume of 3,947,355 shares, compared to its average volume of 2,862,219. The stock has a 50-day moving average of $7.81 and a 200-day moving average of $7.84. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.62 and a quick ratio of 1.62. The firm has a market capitalization of $1.57 billion, a P/E ratio of 29.23, a P/E/G ratio of 4.42 and a beta of 1.41. DiamondRock Hospitality has a twelve month low of $6.18 and a twelve month high of $10.00.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The real estate investment trust reported $0.35 EPS for the quarter, topping analysts' consensus estimates 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 net margin of 6.04% and a return on equity of 4.22%. The firm's revenue for the quarter was down 1.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.34 earnings per share. Research analysts predict that DiamondRock Hospitality will post 0.96 earnings per share for the current year.

DiamondRock Hospitality Cuts Dividend

The firm also recently disclosed a dividend, which was paid on Friday, July 11th. Investors of record on Tuesday, July 1st were issued a $0.08 dividend. This represents a yield of 420.0%. The ex-dividend date was Monday, June 30th. DiamondRock Hospitality's dividend payout ratio (DPR) is 177.78%.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Creative Planning acquired a new stake in DiamondRock Hospitality during the 2nd quarter valued at approximately $99,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its stake in DiamondRock Hospitality by 2.8% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 119,762 shares of the real estate investment trust's stock valued at $917,000 after acquiring an additional 3,290 shares in the last quarter. Police & Firemen s Retirement System of New Jersey grew its position in DiamondRock Hospitality by 4.7% in the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 47,102 shares of the real estate investment trust's stock worth $361,000 after purchasing an additional 2,129 shares in the last quarter. Profund Advisors LLC purchased a new stake in shares of DiamondRock Hospitality during the second quarter valued at approximately $79,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. raised its stake in shares of DiamondRock Hospitality by 8.0% during the 2nd quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 153,413 shares of the real estate investment trust's stock worth $1,175,000 after purchasing an additional 11,349 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.