DiamondRock Hospitality (NYSE:DRH) Reaches New 52-Week High Following Analyst Upgrade

Key Points

• DiamondRock Hospitality shares hit a new 52-week high after Truist Financial raised its price target from $11 to $12 and kept a buy rating on the stock. The shares traded as high as $10.92 during the session.
• Analyst sentiment remains mixed overall, with several firms recently nudging targets higher but mostly maintaining hold/equal-weight views. MarketBeat reports a current consensus rating of Hold and an average price target of $10.98.
• The company recently beat quarterly earnings expectations, posting $0.27 EPS versus the $0.24 estimate, and it also announced a quarterly dividend of $0.09 per share payable on July 14.

DiamondRock Hospitality Company (NYSE:DRH - Get Free Report)'s share price hit a new 52-week high during trading on Tuesday after Truist Financial raised their price target on the stock from $11.00 to $12.00. Truist Financial currently has a buy rating on the stock. DiamondRock Hospitality traded as high as $10.92 and last traded at $10.87, with a volume of 167797 shares trading hands. The stock had previously closed at $10.71.

Several other equities analysts have also issued reports on DRH. Wells Fargo & Company lifted their target price on DiamondRock Hospitality from $10.00 to $11.00 and gave the company an "equal weight" rating in a research note on Wednesday, April 22nd. Morgan Stanley lifted their target price on DiamondRock Hospitality from $9.50 to $9.60 and gave the company an "equal weight" rating in a research note on Tuesday, May 12th. LADENBURG THALM/SH SH began coverage on DiamondRock Hospitality in a research report on Thursday, March 26th. They issued a "buy" rating and a $12.00 price objective for the company. Citigroup boosted their target price on DiamondRock Hospitality from $9.50 to $11.00 and gave the stock a "neutral" rating in a research note on Wednesday, May 6th. Finally, Stifel Nicolaus upped their target price on DiamondRock Hospitality from $11.00 to $11.25 and gave the company a "hold" rating in a research report on Monday, May 11th. Three investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $10.98.

Insider Buying and Selling

In other DiamondRock Hospitality news, Director Michael A. Hartmeier sold 20,000 shares of the firm's stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $10.46, for a total value of $209,200.00. Following the completion of the transaction, the director owned 95,354 shares of the company's stock, valued at approximately $997,402.84. This trade represents a 17.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Steve Spierto sold 4,000 shares of the firm's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $9.93, for a total transaction of $39,720.00. Following the completion of the transaction, the chief accounting officer directly owned 77,977 shares of the company's stock, valued at approximately $774,311.61. This represents a 4.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.90% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Hudson Bay Capital Management LP purchased a new position in shares of DiamondRock Hospitality in the third quarter worth $9,098,000. Centersquare Investment Management LLC increased its holdings in DiamondRock Hospitality by 6.0% in the 3rd quarter. Centersquare Investment Management LLC now owns 7,536,975 shares of the real estate investment trust's stock worth $59,994,000 after buying an additional 427,467 shares during the period. UBS Group AG increased its holdings in DiamondRock Hospitality by 49.9% in the 4th quarter. UBS Group AG now owns 2,627,787 shares of the real estate investment trust's stock worth $23,545,000 after buying an additional 874,536 shares during the period. SG Americas Securities LLC increased its holdings in DiamondRock Hospitality by 881.7% in the 4th quarter. SG Americas Securities LLC now owns 2,024,790 shares of the real estate investment trust's stock worth $18,142,000 after buying an additional 1,818,527 shares during the period. Finally, Y Intercept Hong Kong Ltd acquired a new position in DiamondRock Hospitality in the 3rd quarter worth approximately $2,823,000.

DiamondRock Hospitality Trading Up 2.8%

The company's fifty day moving average is $10.05 and its two-hundred day moving average is $9.57. 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 cap of $2.25 billion, a price-to-earnings ratio of 44.04, a P/E/G ratio of 4.50 and a beta of 0.99.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last issued its quarterly earnings results on Thursday, February 26th. The real estate investment trust reported $0.27 earnings per share for the quarter, topping the consensus estimate 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 for the quarter, compared to the consensus estimate of $273.18 million. During the same quarter in the prior year, the company earned $0.24 EPS. DiamondRock Hospitality's quarterly revenue was down 1.6% on a year-over-year basis. DiamondRock Hospitality has set its FY 2026 guidance at 1.090-1.160 EPS. On average, research analysts anticipate that DiamondRock Hospitality Company will post 0.96 EPS for the current year.

DiamondRock Hospitality Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, July 14th. Shareholders of record on Tuesday, June 30th will be given a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend is Tuesday, June 30th. DiamondRock Hospitality's dividend payout ratio (DPR) is currently 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.

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