DiamondRock Hospitality (NYSE:DRH) Hits New 1-Year High After Analyst Upgrade

Key Points

• New 52-week high — DiamondRock shares hit a one-year high after Citigroup raised its price target to $11; other brokers like Deutsche Bank upgraded to a Buy with a $12 target, but the consensus remains a "Hold" with an average target of $10.81.
• The company beat quarterly EPS ($0.27 vs. $0.24) and set FY2026 guidance of 1.090–1.160 EPS, while analysts on average forecast about $0.96 for the current year.
• DiamondRock declared a quarterly dividend of $0.09 (annualized yield ~3.4%), while fundamentals show a $2.18B market cap and a relatively high P/E of 42.7 and payout ratio of 76.6%.

DiamondRock Hospitality Company (NYSE:DRH - Get Free Report)'s stock price reached a new 52-week high during trading on Thursday after Citigroup raised their price target on the stock from $9.50 to $11.00. Citigroup currently has a neutral rating on the stock. DiamondRock Hospitality traded as high as $10.89 and last traded at $10.67, with a volume of 1833925 shares changing hands. The stock had previously closed at $10.64.

A number of other brokerages also recently weighed in on DRH. Wells Fargo & Company increased their price objective on shares of DiamondRock Hospitality from $10.00 to $11.00 and gave the company an "equal weight" rating in a research report on Wednesday, April 22nd. Barclays started coverage on shares of DiamondRock Hospitality in a research report on Tuesday, January 6th. They issued an "equal weight" rating and a $10.00 target price for the company. Deutsche Bank Aktiengesellschaft raised DiamondRock Hospitality from a "hold" rating to a "buy" rating and increased their price target for the company from $10.00 to $12.00 in a report on Tuesday, January 13th. LADENBURG THALM/SH SH began coverage on DiamondRock Hospitality in a research note on Thursday, March 26th. They issued a "buy" rating and a $12.00 price target on the stock. Finally, Morgan Stanley lifted their price objective on DiamondRock Hospitality from $9.00 to $9.50 and gave the stock an "equal weight" rating in a report on Friday, April 10th. Three research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, DiamondRock Hospitality has a consensus rating of "Hold" and an average target price of $10.81.

Insider Activity

In related news, CAO Steve Spierto sold 4,000 shares of the firm's 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 approximately $774,311.61. This trade represents a 4.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 0.90% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in DRH. Allworth Financial LP grew its position in shares of DiamondRock Hospitality by 146.0% during the 4th quarter. Allworth Financial LP now owns 2,859 shares of the real estate investment trust's stock valued at $26,000 after acquiring an additional 1,697 shares during the period. First Horizon Corp raised its holdings in DiamondRock Hospitality by 54.9% in the 4th quarter. First Horizon Corp now owns 3,214 shares of the real estate investment trust's stock worth $29,000 after purchasing an additional 1,139 shares during the period. EverSource Wealth Advisors LLC raised its holdings in DiamondRock Hospitality by 77.3% in the 4th quarter. EverSource Wealth Advisors LLC now owns 3,436 shares of the real estate investment trust's stock worth $31,000 after purchasing an additional 1,498 shares during the period. Global Retirement Partners LLC lifted its position in DiamondRock Hospitality by 12,114.7% during the fourth quarter. Global Retirement Partners LLC now owns 4,153 shares of the real estate investment trust's stock valued at $37,000 after purchasing an additional 4,119 shares in the last quarter. Finally, Danske Bank A S purchased a new position in DiamondRock Hospitality during the third quarter valued at $33,000.

DiamondRock Hospitality Stock Up 0.3%

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 fifty day simple moving average of $9.85 and a 200-day simple moving average of $9.32. The firm has a market cap of $2.18 billion, a P/E ratio of 42.68, a price-to-earnings-growth ratio of 4.50 and a beta of 0.99.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The real estate investment trust reported $0.27 EPS for the quarter, topping the consensus estimate of $0.24 by $0.03. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The firm had revenue of $274.53 million for the quarter, compared to the consensus estimate of $273.18 million. During the same quarter last year, the company earned $0.24 earnings per share. The business's revenue for the quarter 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 analysts anticipate that DiamondRock Hospitality Company will post 0.96 earnings per share for the current year.

DiamondRock Hospitality Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 14th. Shareholders of record on Tuesday, June 30th will be paid a dividend of $0.09 per share. The ex-dividend date is Tuesday, June 30th. This represents a $0.36 dividend on an annualized basis and a yield of 3.4%. DiamondRock Hospitality's dividend payout ratio (DPR) is presently 76.60%.

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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