DiamondRock Hospitality (NYSE:DRH) Given New $9.60 Price Target at Morgan Stanley

Key Points

• Morgan Stanley raised its price target on DiamondRock Hospitality to $9.60 from $9.50 and kept an equal weight rating, implying downside from the current share price.
• DRH has seen a mixed analyst picture overall, with several firms recently adjusting targets and ratings; MarketBeat reports an average Hold rating and an average price target of $10.87.
• The stock was down slightly in Tuesday trading at $10.57, while the company’s latest earnings beat expectations with $0.27 EPS versus the $0.24 consensus and revenue of $274.53 million.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) had its price target increased by investment analysts at Morgan Stanley from $9.50 to $9.60 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm presently has an "equal weight" rating on the real estate investment trust's stock. Morgan Stanley's price objective suggests a potential downside of 9.13% from the company's current price.

Several other equities research analysts have also issued reports on DRH. Wells Fargo & Company lifted their price target on DiamondRock Hospitality from $10.00 to $11.00 and gave the company an "equal weight" rating in a report on Wednesday, April 22nd. LADENBURG THALM/SH SH began coverage on DiamondRock Hospitality in a report on Thursday, March 26th. They issued a "buy" rating and a $12.00 price objective on the stock. Deutsche Bank Aktiengesellschaft upgraded DiamondRock Hospitality from a "hold" rating to a "buy" rating and increased their price objective for the stock from $10.00 to $12.00 in a report on Tuesday, January 13th. Stifel Nicolaus increased their price objective on DiamondRock Hospitality from $11.00 to $11.25 and gave the stock a "hold" rating in a report on Monday. Finally, Citigroup increased their price objective on DiamondRock Hospitality from $9.50 to $11.00 and gave the stock a "neutral" rating in a report on Wednesday, May 6th. Three equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat.com, DiamondRock Hospitality presently has an average rating of "Hold" and an average price target of $10.87.

DiamondRock Hospitality Stock Down 0.3%

DRH stock traded down $0.04 during midday trading on Tuesday, reaching $10.57. The company had a trading volume of 382,135 shares, compared to its average volume of 2,375,977. DiamondRock Hospitality has a 1 year low of $7.31 and a 1 year high of $10.90. 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 $2.16 billion, a P/E ratio of 42.22, a PEG ratio of 4.50 and a beta of 0.99. The company has a 50 day moving average of $9.88 and a two-hundred day moving average of $9.38.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last released its earnings results on Thursday, February 26th. The real estate investment trust reported $0.27 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.24 by $0.03. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The company had revenue of $274.53 million during the quarter, compared to the consensus estimate of $273.18 million. During the same quarter in the prior year, the firm earned $0.24 EPS. The company's revenue was down 1.6% compared to the same quarter last year. DiamondRock Hospitality has set its FY 2026 guidance at 1.090-1.160 EPS. On average, equities research analysts expect that DiamondRock Hospitality will post 0.96 earnings per share for the current fiscal year.

Insider Activity at DiamondRock Hospitality

In other news, CAO Steve Spierto sold 4,000 shares of DiamondRock Hospitality stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $9.93, for a total value of $39,720.00. Following the transaction, the chief accounting officer owned 77,977 shares of the company's stock, valued at $774,311.61. This trade represents a 4.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On DiamondRock Hospitality

Institutional investors have recently modified their holdings of the company. Hudson Bay Capital Management LP bought a new position in shares of DiamondRock Hospitality in the third quarter valued at approximately $9,098,000. Wolverine Asset Management LLC bought a new position in shares of DiamondRock Hospitality in the third quarter valued at approximately $3,216,000. Centersquare Investment Management LLC grew its stake in shares of DiamondRock Hospitality by 6.0% in the third quarter. Centersquare Investment Management LLC now owns 7,536,975 shares of the real estate investment trust's stock worth $59,994,000 after acquiring an additional 427,467 shares during the last quarter. Y Intercept Hong Kong Ltd acquired a new stake in shares of DiamondRock Hospitality in the third quarter worth $2,823,000. Finally, SG Americas Securities LLC grew its stake in shares of DiamondRock Hospitality by 881.7% in the fourth quarter. SG Americas Securities LLC now owns 2,024,790 shares of the real estate investment trust's stock worth $18,142,000 after acquiring an additional 1,818,527 shares during the last quarter.

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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