DiamondRock Hospitality (NYSE:DRH) Given New $13.25 Price Target at Stifel Nicolaus

Key Points

• Stifel Nicolaus raised DiamondRock Hospitality’s price target from $12.50 to $13.25 while maintaining a “hold” rating; the new target implied slight downside from the prior close. The broader analyst consensus remained “Hold,” with an average target of $12.22.
• DRH shares rose 3.4% to $13.35, near the company’s 52-week high. The REIT reported quarterly EPS of $0.44, beating the $0.22 consensus estimate, while revenue of $318.29 million exceeded expectations and increased 4.1% year over year.
• Institutional investors, including Bank of America and Janus Henderson, increased their positions during the first quarter, while two directors sold 20,000 shares each. Insiders collectively owned 0.90% of the company.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) had its price target raised by equities researchers at Stifel Nicolaus from $12.50 to $13.25 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage currently has a "hold" rating on the real estate investment trust's stock. Stifel Nicolaus' target price indicates a potential downside of 0.73% from the stock's previous close.

A number of other equities analysts also recently commented on DRH. 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. Barclays upped their target price on DiamondRock Hospitality from $10.00 to $12.00 and gave the stock an "equal weight" rating in a report on Monday, June 1st. Bank of America increased their price target on DiamondRock Hospitality from $12.50 to $13.00 and gave the company a "buy" rating in a research report on Monday, July 20th. Citigroup raised their price target on DiamondRock Hospitality from $11.00 to $13.00 and gave the company a "neutral" rating in a research note on Wednesday, July 22nd. Finally, LADENBURG THALM/SH SH boosted 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. Four research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $12.22.

DiamondRock Hospitality Stock Up 3.4%

Shares of DRH stock traded up $0.44 during trading on Friday, reaching $13.35. The company's stock had a trading volume of 284,254 shares, compared to its average volume of 2,312,282. The business has a fifty day moving average price of $12.00 and a 200-day moving average price of $10.60. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 0.70. The company has a market cap of $2.73 billion, a price-to-earnings ratio of 53.38, a price-to-earnings-growth ratio of 4.50 and a beta of 0.98. DiamondRock Hospitality has a one year low of $7.45 and a one year high of $13.46.

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

Insider Activity

In other DiamondRock Hospitality news, Director Michael A. Hartmeier sold 20,000 shares of DiamondRock Hospitality stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $10.46, for a total transaction of $209,200.00. Following the completion of the transaction, the director directly owned 95,354 shares of the company's stock, valued at $997,402.84. The trade was a 17.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, 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 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. Additional details regarding this sale are available in the official SEC disclosure. 0.90% of the stock is owned by insiders.

Institutional Trading of DiamondRock Hospitality

Several hedge funds and other institutional investors have recently modified their holdings of DRH. Bank of America Corp DE grew its stake in DiamondRock Hospitality by 7.2% in the 1st quarter. Bank of America Corp DE now owns 8,987,338 shares of the real estate investment trust's stock valued at $84,211,000 after buying an additional 606,962 shares during the last quarter. Janus Henderson Group PLC lifted its position in DiamondRock Hospitality by 10.1% during the first quarter. Janus Henderson Group PLC now owns 1,312,694 shares of the real estate investment trust's stock worth $12,299,000 after acquiring an additional 119,921 shares during the last quarter. Amundi boosted its holdings in shares of DiamondRock Hospitality by 30.9% during the first quarter. Amundi now owns 191,306 shares of the real estate investment trust's stock worth $1,793,000 after acquiring an additional 45,198 shares during the period. California State Teachers Retirement System boosted its holdings in shares of DiamondRock Hospitality by 30.2% during the first quarter. California State Teachers Retirement System now owns 249,084 shares of the real estate investment trust's stock worth $2,334,000 after acquiring an additional 57,774 shares during the period. Finally, Quantinno Capital Management LP grew its position in shares of DiamondRock Hospitality by 43.2% in the first quarter. Quantinno Capital Management LP now owns 82,542 shares of the real estate investment trust's stock valued at $773,000 after purchasing an additional 24,889 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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