DiamondRock Hospitality (NYSE:DRH) Reaches New 12-Month High on Analyst Upgrade

Key Points

• DiamondRock Hospitality (NYSE:DRH) hit a new 52-week high after Citigroup raised its price target from $11.00 to $13.00, though the firm kept a neutral rating.
• Several other analysts have recently lifted their targets as well, with the stock now carrying a consensus Hold rating and an average price target of $12.03.
• The company also recently paid a quarterly dividend of $0.09 per share, equal to an annualized yield of about 2.8%.

Shares of DiamondRock Hospitality Company (NYSE:DRH - Get Free Report) hit a new 52-week high during mid-day trading on Thursday after Citigroup raised their price target on the stock from $11.00 to $13.00. Citigroup currently has a neutral rating on the stock. DiamondRock Hospitality traded as high as $13.05 and last traded at $12.90, with a volume of 2397795 shares trading hands. The stock had previously closed at $12.97.

DRH has been the topic of several other reports. Wells Fargo & Company lifted their target price on DiamondRock Hospitality from $11.00 to $12.00 and gave the stock an "equal weight" rating in a report on Monday, June 1st. Stifel Nicolaus set a $12.25 price target on DiamondRock Hospitality in a report on Thursday, June 4th. Bank of America increased their price target on DiamondRock Hospitality from $12.50 to $13.00 and gave the stock a "buy" rating in a report on Monday. Barclays raised their price target on DiamondRock Hospitality from $10.00 to $12.00 and gave the stock an "equal weight" rating in a research report on Monday, June 1st. Finally, LADENBURG THALM/SH SH boosted their price objective on DiamondRock Hospitality from $13.00 to $14.00 and gave the company a "buy" rating in a research report on Thursday, June 18th. Four investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $12.03.

Insiders Place Their Bets

In related news, Director Kathleen Merrill sold 20,000 shares of the business's stock in a transaction on Friday, June 12th. The shares were sold at an average price of $11.88, for a total value of $237,600.00. Following the sale, the director directly owned 84,335 shares of the company's stock, valued at approximately $1,001,899.80. The trade was a 19.17% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Michael A. Hartmeier sold 20,000 shares of the company's stock in a transaction 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 completion of the transaction, the director directly owned 95,354 shares of the company's stock, valued at approximately $997,402.84. The trade was a 17.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.90% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Allworth Financial LP lifted its stake in DiamondRock Hospitality by 146.0% in 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 in the last quarter. First Horizon Corp grew its stake in shares of DiamondRock Hospitality by 54.9% during the 4th quarter. First Horizon Corp now owns 3,214 shares of the real estate investment trust's stock worth $29,000 after acquiring an additional 1,139 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in shares of DiamondRock Hospitality by 77.3% during the 4th quarter. EverSource Wealth Advisors LLC now owns 3,436 shares of the real estate investment trust's stock worth $31,000 after acquiring an additional 1,498 shares in the last quarter. Danske Bank A S acquired a new stake in shares of DiamondRock Hospitality in the third quarter valued at approximately $33,000. Finally, Global Retirement Partners LLC lifted its position in shares of DiamondRock Hospitality by 12,114.7% in the fourth quarter. Global Retirement Partners LLC now owns 4,153 shares of the real estate investment trust's stock worth $37,000 after purchasing an additional 4,119 shares in the last quarter.

DiamondRock Hospitality Stock Performance

The stock's 50-day moving average price is $11.72 and its 200 day moving average price is $10.44. The firm has a market cap of $2.64 billion, a P/E ratio of 51.60, a price-to-earnings-growth ratio of 4.50 and a beta of 0.98. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.64 and a quick ratio of 1.64.

DiamondRock Hospitality Announces Dividend

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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.