DiamondRock Hospitality (NYSE:DRH) Sets New 52-Week High - Still a Buy?

Key Points

• DiamondRock Hospitality shares reached a new 52-week high of $13.79, although the stock’s average analyst rating remains “Hold” with an average price target of $12.22.
• The REIT reported quarterly EPS of $0.44, beating the $0.22 consensus estimate, while revenue rose 4.1% year over year to $318.29 million.
• DiamondRock increased its quarterly dividend from $0.09 to $0.11 per share, implying a $0.44 annual payout and a 3.3% yield; however, two directors recently sold 20,000 shares each.

DiamondRock Hospitality Company (NYSE:DRH - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $13.79 and last traded at $13.38, with a volume of 6021119 shares traded. The stock had previously closed at $13.24.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on DRH shares. Bank of America raised their target price on DiamondRock Hospitality from $12.50 to $13.00 and gave the company a "buy" rating in a report on Monday, July 20th. Truist Financial increased their price objective on DiamondRock Hospitality from $11.00 to $12.00 and gave the company a "buy" rating in a report on Tuesday, May 26th. Barclays raised their price objective on DiamondRock Hospitality from $10.00 to $12.00 and gave the company an "equal weight" rating in a research note on Monday, June 1st. Stifel Nicolaus upped their target price on DiamondRock Hospitality from $12.50 to $13.25 and gave the stock a "hold" rating in a research report on Friday. Finally, LADENBURG THALM/SH SH increased their price target on DiamondRock Hospitality from $13.00 to $14.00 and gave the company a "buy" rating in a 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. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $12.22.

DiamondRock Hospitality Price Performance

The company has a market capitalization of $2.74 billion, a P/E ratio of 53.52, a PEG ratio of 4.50 and a beta of 0.98. The stock's fifty day simple moving average is $12.10 and its 200-day simple moving average is $10.65. 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 (NYSE:DRH - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.22. The business had revenue of $318.29 million during the quarter, compared to analysts' expectations of $314.98 million. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The firm's revenue was up 4.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.35 EPS. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. On average, equities analysts forecast that DiamondRock Hospitality Company will post 0.96 earnings per share for the current fiscal year.

DiamondRock Hospitality Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 30th will be given a $0.11 dividend. This is a positive change from DiamondRock Hospitality's previous quarterly dividend of $0.09. This represents a $0.44 annualized dividend and a dividend yield of 3.3%. The ex-dividend date of this dividend is Wednesday, September 30th. DiamondRock Hospitality's dividend payout ratio (DPR) is currently 60.27%.

Insider Buying and Selling at DiamondRock Hospitality

In related news, Director Michael A. Hartmeier sold 20,000 shares of the business's stock in a transaction on 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 approximately $997,402.84. The trade was a 17.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Kathleen Merrill sold 20,000 shares of the stock in a transaction on 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 sale, the director directly owned 84,335 shares of the company's stock, valued at approximately $1,001,899.80. This trade represents a 19.17% 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 Investors Weigh In On DiamondRock Hospitality

A number of institutional investors have recently added to or reduced their stakes in the company. UBS Group AG raised its stake in DiamondRock Hospitality by 49.9% during the fourth quarter. UBS Group AG now owns 2,627,787 shares of the real estate investment trust's stock worth $23,545,000 after acquiring an additional 874,536 shares in the last quarter. Louisiana State Employees Retirement System acquired a new stake in shares of DiamondRock Hospitality in the 1st quarter valued at $846,000. SG Americas Securities LLC grew its holdings in shares of DiamondRock Hospitality by 106.1% in the 1st quarter. SG Americas Securities LLC now owns 4,172,671 shares of the real estate investment trust's stock worth $39,098,000 after purchasing an additional 2,147,881 shares during the last quarter. Principal Financial Group Inc. grew its holdings in shares of DiamondRock Hospitality by 37.2% in the 1st quarter. Principal Financial Group Inc. now owns 1,334,731 shares of the real estate investment trust's stock worth $12,506,000 after purchasing an additional 361,674 shares during the last quarter. Finally, Strs Ohio increased its position in shares of DiamondRock Hospitality by 300.0% during the 1st quarter. Strs Ohio now owns 145,600 shares of the real estate investment trust's stock worth $1,361,000 after purchasing an additional 109,200 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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