DiamondRock Hospitality (NYSE:DRH) Given New $13.00 Price Target at Bank of America

Key Points

• Bank of America raised its price target on DiamondRock Hospitality (NYSE: DRH) to $13.00 from $12.50 while keeping a buy rating, implying about 2.24% upside from the current price.
• Several other analysts have recently adjusted their outlooks on DRH, but the broader view remains mixed: the stock currently carries a consensus Hold rating and a $11.82 average target price.
• DRH shares were trading up 1.3% at $12.71, near their 12-month high of $12.77, while the article also noted recent insider selling by two directors and ongoing institutional buying activity.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) had its price objective upped by research analysts at Bank of America from $12.50 to $13.00 in a research report issued on Monday,Benzinga reports. The brokerage currently has a "buy" rating on the real estate investment trust's stock. Bank of America's target price suggests a potential upside of 2.24% from the stock's current price.

A number of other research analysts have also weighed in on DRH. Stifel Nicolaus set a $12.25 price objective on shares of DiamondRock Hospitality in a research note on Thursday, June 4th. Wells Fargo & Company boosted their target price on shares of DiamondRock Hospitality from $11.00 to $12.00 and gave the stock an "equal weight" rating in a research report on Monday, June 1st. Barclays raised their price target on shares of DiamondRock Hospitality from $10.00 to $12.00 and gave the company an "equal weight" rating in a research report on Monday, June 1st. Morgan Stanley lifted their price target on DiamondRock Hospitality from $9.60 to $10.00 and gave the company an "equal weight" rating in a research note on Friday. Finally, LADENBURG THALM/SH SH boosted their price objective on DiamondRock Hospitality from $13.00 to $14.00 and gave the stock a "buy" rating in a report on Thursday, June 18th. Four research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, DiamondRock Hospitality presently has a consensus rating of "Hold" and a consensus target price of $11.82.

DiamondRock Hospitality Stock Up 1.3%

Shares of DRH traded up $0.17 during trading hours on Monday, reaching $12.71. The stock had a trading volume of 1,494,883 shares, compared to its average volume of 2,310,639. DiamondRock Hospitality has a 12 month low of $7.45 and a 12 month high of $12.77. The firm has a 50-day simple moving average of $11.58 and a 200 day simple moving average of $10.36. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 0.70. The company has a market capitalization of $2.60 billion, a price-to-earnings ratio of 50.78, a P/E/G ratio of 4.50 and a beta of 0.98.

Insider Activity

In other DiamondRock Hospitality news, Director Kathleen Merrill sold 20,000 shares of DiamondRock Hospitality stock in a transaction that occurred 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 transaction, the director owned 84,335 shares of the company's stock, valued at $1,001,899.80. This trade represents a 19.17% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Michael A. Hartmeier sold 20,000 shares of DiamondRock Hospitality stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $10.46, for a total transaction of $209,200.00. Following the transaction, the director directly owned 95,354 shares in the company, valued at approximately $997,402.84. This represents a 17.34% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.90% of the company's stock.

Institutional Trading of DiamondRock Hospitality

Institutional investors and hedge funds have recently modified their holdings of the business. AQR Capital Management LLC grew its stake in DiamondRock Hospitality by 223.2% in the 1st quarter. AQR Capital Management LLC now owns 65,376 shares of the real estate investment trust's stock valued at $505,000 after purchasing an additional 45,146 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in DiamondRock Hospitality by 5.1% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 123,672 shares of the real estate investment trust's stock worth $955,000 after buying an additional 5,971 shares during the last quarter. United Services Automobile Association purchased a new stake in DiamondRock Hospitality during the first quarter worth about $91,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in DiamondRock Hospitality by 3.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,327,841 shares of the real estate investment trust's stock worth $10,251,000 after acquiring an additional 48,558 shares during the period. Finally, Creative Planning bought a new stake in DiamondRock Hospitality in the second quarter worth about $99,000.

About DiamondRock Hospitality

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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