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

Key Points

• Morgan Stanley raised DiamondRock Hospitality’s price target from $10 to $11 while maintaining an “equal weight” rating, implying about 11% downside from the prior close.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $12.32; targets from other firms range from $12 to $14.
• DiamondRock reported quarterly EPS of $0.44, exceeding the $0.22 consensus estimate, while revenue rose 4.1% year over year to $318.29 million.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) had its price target hoisted by equities researchers at Morgan Stanley from $10.00 to $11.00 in a report issued on Tuesday,Benzinga reports. The brokerage currently has an "equal weight" rating on the real estate investment trust's stock. Morgan Stanley's price target points to a potential downside of 11.00% from the company's previous close.

Other analysts have also issued reports about the stock. Barclays increased their target price on shares of DiamondRock Hospitality from $10.00 to $12.00 and gave the company an "equal weight" rating in a research note on Monday, June 1st. Bank of America upped their price target on DiamondRock Hospitality from $12.50 to $13.00 and gave the company a "buy" rating in a report on Monday, July 20th. LADENBURG THALM/SH SH increased 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. Stifel Nicolaus raised their price objective on DiamondRock Hospitality from $12.50 to $13.25 and gave the stock a "hold" rating in a research note on Friday, July 31st. Finally, Citigroup lifted their target price on DiamondRock Hospitality from $11.00 to $13.00 and gave the stock a "neutral" rating in a report on Wednesday, July 22nd. Four equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, DiamondRock Hospitality presently has a consensus rating of "Hold" and an average price target of $12.32.

DiamondRock Hospitality Stock Performance

Shares of DRH stock opened at $12.36 on Tuesday. The stock has a 50-day simple moving average of $12.36 and a 200 day simple moving average of $10.87. The stock has a market capitalization of $2.53 billion, a P/E ratio of 49.44, a P/E/G ratio of 4.50 and a beta of 0.98. DiamondRock Hospitality has a fifty-two week low of $7.47 and a fifty-two week high of $13.79. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 0.70.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 EPS for the quarter, topping the consensus estimate of $0.22 by $0.22. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The firm had revenue of $318.29 million for the quarter, compared to analysts' expectations of $314.98 million. During the same period in the previous year, the business earned $0.35 earnings per share. DiamondRock Hospitality's revenue for the quarter was up 4.1% compared to the same quarter last year. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. On average, sell-side analysts expect that DiamondRock Hospitality will post 0.96 earnings per share for the current fiscal year.

Insider Activity at DiamondRock Hospitality

In related news, Director Kathleen Merrill sold 20,000 shares of the company's stock in a transaction that occurred 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 completion of the sale, the director owned 84,335 shares in the company, valued at approximately $1,001,899.80. This represents a 19.17% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 0.90% of the company's stock.

Hedge Funds Weigh In On DiamondRock Hospitality

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Louisiana State Employees Retirement System purchased a new position in shares of DiamondRock Hospitality during the first quarter valued at $846,000. UBS Group AG lifted its stake 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 acquiring an additional 874,536 shares in the last quarter. Bank of America Corp DE boosted its position in DiamondRock Hospitality by 7.2% during the 1st quarter. Bank of America Corp DE now owns 8,987,338 shares of the real estate investment trust's stock worth $84,211,000 after acquiring an additional 606,962 shares during the period. SG Americas Securities LLC boosted its position in DiamondRock Hospitality by 106.1% during 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 acquiring an additional 2,147,881 shares during the period. Finally, Principal Financial Group Inc. grew its stake in DiamondRock Hospitality by 37.2% during the 1st quarter. Principal Financial Group Inc. now owns 1,334,731 shares of the real estate investment trust's stock valued at $12,506,000 after acquiring an additional 361,674 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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