DiamondRock Hospitality (NYSE:DRH) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Morgan Stanley raised its price target on DiamondRock Hospitality from $9.00 to $9.50 but maintained an equal weight rating, with the new target implying about a 5.75% downside from the prior close.
• Analyst sentiment is mixed: four firms rate DRH a Buy and six rate it a Hold, leaving a MarketBeat consensus of "Hold" and an average target price of $10.25.
• Fundamentals show a modest beat on the latest quarter (EPS $0.27 vs. $0.24 est.), FY2026 guidance of $1.09–$1.16 EPS, a market cap of about $2.06B and a high P/E (~40), while insiders have recently sold shares and major institutions hold sizable positions.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) had its price objective hoisted by analysts at Morgan Stanley from $9.00 to $9.50 in a research report issued on Friday,Benzinga reports. The brokerage presently has an "equal weight" rating on the real estate investment trust's stock. Morgan Stanley's price objective points to a potential downside of 5.75% from the stock's previous close.

DRH has been the topic of a number of other research reports. LADENBURG THALM/SH SH began coverage on DiamondRock Hospitality in a research note on Thursday, March 26th. They set a "buy" rating and a $12.00 price objective on the stock. Barclays began coverage on DiamondRock Hospitality in a research note on Tuesday, January 6th. They issued an "equal weight" rating and a $10.00 price target on the stock. Deutsche Bank Aktiengesellschaft upgraded DiamondRock Hospitality from a "hold" rating to a "buy" rating and boosted their price target for the stock from $10.00 to $12.00 in a research note on Tuesday, January 13th. Finally, Truist Financial raised DiamondRock Hospitality from a "hold" rating to a "buy" rating and boosted their price objective for the company from $10.00 to $11.00 in a report on Friday, January 9th. Four equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $10.25.

DiamondRock Hospitality Stock Performance

DiamondRock Hospitality stock opened at $10.08 on Friday. The stock's 50-day moving average is $9.64 and its 200-day moving average is $9.01. The company has a market cap of $2.06 billion, a price-to-earnings ratio of 40.32, a price-to-earnings-growth ratio of 4.50 and a beta of 0.99. 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 has a 12 month low of $6.73 and a 12 month high of $10.67.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The real estate investment trust reported $0.27 EPS for the quarter, topping analysts' consensus estimates of $0.24 by $0.03. The company had revenue of $274.53 million for the quarter, compared to the consensus estimate of $273.18 million. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The company's quarterly revenue was down 1.6% compared to the same quarter last year. During the same period last year, the business posted $0.24 EPS. DiamondRock Hospitality has set its FY 2026 guidance at 1.090-1.160 EPS. Equities analysts anticipate that DiamondRock Hospitality will post 0.96 earnings per share for the current year.

Insider Buying and Selling at DiamondRock Hospitality

In related news, CAO Steve Spierto sold 4,000 shares of DiamondRock Hospitality stock in a transaction 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 in the company, valued at $774,311.61. This trade represents a 4.88% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.90% of the company's stock.

Institutional Investors Weigh In On DiamondRock Hospitality

A number of hedge funds have recently bought and sold shares of the business. State Street Corp increased its stake in DiamondRock Hospitality by 0.8% in the 2nd quarter. State Street Corp now owns 12,587,578 shares of the real estate investment trust's stock worth $97,400,000 after buying an additional 93,929 shares during the period. Bank of America Corp DE grew its holdings in DiamondRock Hospitality by 17.5% during the 2nd quarter. Bank of America Corp DE now owns 9,231,991 shares of the real estate investment trust's stock worth $70,717,000 after acquiring an additional 1,377,897 shares in the last quarter. Alyeska Investment Group L.P. grew its holdings in DiamondRock Hospitality by 5.5% during the 3rd quarter. Alyeska Investment Group L.P. now owns 9,152,343 shares of the real estate investment trust's stock worth $72,853,000 after acquiring an additional 475,611 shares in the last quarter. Centersquare Investment Management LLC grew its holdings in DiamondRock Hospitality by 3.2% during the 4th quarter. Centersquare Investment Management LLC now owns 7,780,988 shares of the real estate investment trust's stock worth $69,718,000 after acquiring an additional 244,013 shares in the last quarter. Finally, Cohen & Steers Inc. bought a new position in DiamondRock Hospitality during the 4th quarter worth about $59,231,000.

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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