DiamondRock Hospitality (NYSE:DRH) Hits New 12-Month High - Still a Buy?

DiamondRock Hospitality Company (NYSE:DRH - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $13.08 and last traded at $13.07, with a volume of 1660792 shares. The stock had previously closed at $12.91.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on DRH shares. Stifel Nicolaus set a $12.25 price target on shares of DiamondRock Hospitality in a research note on Thursday, June 4th. LADENBURG THALM/SH SH increased their price objective on shares of DiamondRock Hospitality from $13.00 to $14.00 and gave the stock a "buy" rating in a research report on Thursday, June 18th. Morgan Stanley raised their target price on DiamondRock Hospitality from $9.60 to $10.00 and gave the company an "equal weight" rating in a research note on Friday, July 17th. Barclays boosted their target price on DiamondRock Hospitality from $10.00 to $12.00 and gave the company an "equal weight" rating in a research report on Monday, June 1st. Finally, Truist Financial upped their price target on DiamondRock Hospitality from $11.00 to $12.00 and gave the stock a "buy" rating in a research note on Tuesday, May 26th. Four analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to MarketBeat.com, DiamondRock Hospitality has an average rating of "Hold" and an average target price of $12.12.

DiamondRock Hospitality Trading Up 1.2%

The business has a fifty day moving average of $11.91 and a 200-day moving average of $10.54. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.64 and a current ratio of 1.64. The company has a market capitalization of $2.67 billion, a P/E ratio of 52.28, a PEG ratio of 4.50 and a beta of 0.98.

DiamondRock Hospitality Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 14th. Shareholders of record on Tuesday, June 30th were issued a dividend of $0.09 per share. The ex-dividend date was Tuesday, June 30th. This represents a $0.36 annualized dividend and a yield of 2.8%. DiamondRock Hospitality's dividend payout ratio is presently 76.60%.

Insiders Place Their Bets

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

Hedge Funds Weigh In On DiamondRock Hospitality

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