DiamondRock Hospitality Company (NYSE:DRH) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analysts maintain a “Hold” consensus on DiamondRock Hospitality, with seven hold ratings and four buys. The average 12-month price target is $12.23, modestly below the reported opening price of $12.36.
• DiamondRock reported quarterly EPS of $0.44, surpassing the $0.22 consensus estimate, while revenue of $318.29 million also exceeded expectations and rose 4.1% year over year.
• The REIT increased its quarterly dividend from $0.09 to $0.11 per share, equivalent to $0.44 annually and a 3.6% yield; institutional investors also expanded several positions in the company.

Shares of DiamondRock Hospitality Company (NYSE:DRH - Get Free Report) have been given a consensus recommendation of "Hold" by the eleven brokerages that are presently covering the firm, Marketbeat Ratings reports. Seven investment analysts have rated the stock with a hold rating and four have given a buy rating to the company. The average 12-month target price among brokers that have issued a report on the stock in the last year is $12.2250.

Several equities research analysts have recently issued reports on DRH shares. Citigroup increased their target price on shares of DiamondRock Hospitality from $11.00 to $13.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 22nd. Barclays upped their price target on DiamondRock Hospitality from $10.00 to $12.00 and gave the stock an "equal weight" rating in a report on Monday, June 1st. LADENBURG THALM/SH SH increased their price target on DiamondRock Hospitality from $13.00 to $14.00 and gave the stock a "buy" rating in a research report on Thursday, June 18th. Wells Fargo & Company raised their price objective on DiamondRock Hospitality from $12.00 to $13.00 and gave the company an "equal weight" rating in a report on Thursday, July 23rd. Finally, Bank of America boosted their price objective on DiamondRock Hospitality from $12.50 to $13.00 and gave the company a "buy" rating in a research report on Monday, July 20th.

DiamondRock Hospitality Price Performance

NYSE:DRH opened at $12.36 on Monday. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.64 and a quick ratio of 1.64. The company has a 50 day moving average price of $12.34 and a 200-day moving average price of $10.85. DiamondRock Hospitality has a 1-year low of $7.47 and a 1-year high of $13.79. The firm has a market cap of $2.53 billion, a price-to-earnings ratio of 49.44, a price-to-earnings-growth ratio of 4.50 and a beta of 0.98.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.22 by $0.22. The firm had revenue of $318.29 million for the quarter, compared to the consensus estimate of $314.98 million. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The firm's quarterly revenue was up 4.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.35 earnings per share. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. Equities research analysts forecast that DiamondRock Hospitality will post 0.96 EPS for the current year.

DiamondRock Hospitality Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 30th will be paid a $0.11 dividend. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $0.44 dividend on an annualized basis and a yield of 3.6%. This is an increase from DiamondRock Hospitality's previous quarterly dividend of $0.09. DiamondRock Hospitality's dividend payout ratio is 60.27%.

Insider Buying and Selling

In other DiamondRock Hospitality news, Director Kathleen Merrill sold 20,000 shares of the company's stock in a transaction on Friday, June 12th. The shares were sold at an average price of $11.88, for a total transaction of $237,600.00. Following the completion of the transaction, the director directly owned 84,335 shares in the company, valued at approximately $1,001,899.80. This represents a 19.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 0.90% of the company's stock.

Institutional Trading of DiamondRock Hospitality

Several institutional investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in shares of DiamondRock Hospitality during the 2nd quarter worth about $475,282,000. State Street Corp boosted its holdings in DiamondRock Hospitality by 0.8% in the 2nd quarter. State Street Corp now owns 12,587,578 shares of the real estate investment trust's stock worth $97,400,000 after buying an additional 93,929 shares during the last quarter. Bank of America Corp DE increased its stake 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. Alyeska Investment Group L.P. raised its holdings in shares of DiamondRock Hospitality by 5.5% during the third quarter. Alyeska Investment Group L.P. now owns 9,152,343 shares of the real estate investment trust's stock valued at $72,853,000 after acquiring an additional 475,611 shares during the last quarter. Finally, Centersquare Investment Management LLC raised its holdings in shares of DiamondRock Hospitality by 3.2% during the fourth quarter. Centersquare Investment Management LLC now owns 7,780,988 shares of the real estate investment trust's stock valued at $69,718,000 after acquiring an additional 244,013 shares during the last quarter.

DiamondRock Hospitality Company Profile

DiamondRock Hospitality Company is a real estate investment trust (REIT) that acquires, owns and manages a diversified portfolio of upscale, full-service hotels in urban gateway markets across the United States. Established in 2004 and headquartered in Bethesda, Maryland, the company focuses on investing in high-quality lodging properties that cater to both business and leisure travelers. Its assets are positioned in key metropolitan areas, enabling DiamondRock to benefit from strong demand drivers such as corporate travel, group conventions and resort leisure stays.

The company's portfolio includes full-service hotels offering a broad range of amenities, including guest rooms, on-site food and beverage outlets, meeting and event space, fitness centers and spa services.

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