DiamondRock Hospitality (NYSE:DRH) Stock Price Expected to Rise, Stifel Nicolaus Analyst Says

Key Points

• Stifel Nicolaus raised its price target on DiamondRock Hospitality from $11.00 to $11.25 while keeping a hold rating, implying about 4.74% upside from the prior close.
• Several other analysts recently adjusted their views, with target prices moving higher at firms including Wells Fargo, Citi, Deutsche Bank, and Morgan Stanley. Overall, the stock still carries a consensus Hold rating and an average price target of $10.86.
• DiamondRock’s latest quarter beat expectations, posting EPS of $0.27 versus $0.24 expected and revenue of $274.53 million. The company also issued FY2026 guidance for EPS of 1.09 to 1.16.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) had its target price hoisted by stock analysts at Stifel Nicolaus from $11.00 to $11.25 in a note issued to investors on Monday,Benzinga reports. The firm presently has a "hold" rating on the real estate investment trust's stock. Stifel Nicolaus' price objective would suggest a potential upside of 4.74% from the stock's previous close.

A number of other research analysts also recently commented on DRH. Wells Fargo & Company upped their price objective on shares of DiamondRock Hospitality from $10.00 to $11.00 and gave the company an "equal weight" rating in a research note on Wednesday, April 22nd. LADENBURG THALM/SH SH assumed coverage on shares of DiamondRock Hospitality in a research report on Thursday, March 26th. They set a "buy" rating and a $12.00 price target for the company. Deutsche Bank Aktiengesellschaft raised shares of DiamondRock Hospitality from a "hold" rating to a "buy" rating and boosted their price objective for the company from $10.00 to $12.00 in a research note on Tuesday, January 13th. Citigroup increased their price target on DiamondRock Hospitality from $9.50 to $11.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. Finally, Morgan Stanley boosted their price target on DiamondRock Hospitality from $9.00 to $9.50 and gave the company an "equal weight" rating in a report on Friday, April 10th. Three equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $10.86.

DiamondRock Hospitality Stock Performance

DRH opened at $10.74 on Monday. DiamondRock Hospitality has a 1-year low of $7.31 and a 1-year high of $10.90. The stock has a market cap of $2.20 billion, a P/E ratio of 43.64, a P/E/G ratio of 4.50 and a beta of 0.99. The stock's 50 day simple moving average is $9.86 and its 200 day simple moving average is $9.34. 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, February 26th. The real estate investment trust reported $0.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.24 by $0.03. The business had revenue of $274.53 million for the quarter, compared to analysts' expectations of $273.18 million. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The business's revenue was down 1.6% on a year-over-year basis. During the same quarter last year, the firm earned $0.24 earnings per share. DiamondRock Hospitality has set its FY 2026 guidance at 1.090-1.160 EPS. As a group, equities analysts anticipate that DiamondRock Hospitality will post 0.96 EPS for the current fiscal year.

Insider Activity

In related news, CAO Steve Spierto sold 4,000 shares of the business's stock in a transaction dated 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 owned 77,977 shares of the company's stock, valued at approximately $774,311.61. The trade was a 4.88% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.90% of the company's stock.

Institutional Investors Weigh In On DiamondRock Hospitality

Institutional investors have recently bought and sold shares of the business. Allworth Financial LP lifted its holdings in shares of DiamondRock Hospitality by 146.0% during the 4th quarter. Allworth Financial LP now owns 2,859 shares of the real estate investment trust's stock worth $26,000 after acquiring an additional 1,697 shares during the period. First Horizon Corp increased its stake in DiamondRock Hospitality by 54.9% in the fourth quarter. First Horizon Corp now owns 3,214 shares of the real estate investment trust's stock valued at $29,000 after acquiring an additional 1,139 shares during the period. EverSource Wealth Advisors LLC raised its position in DiamondRock Hospitality by 77.3% in the fourth quarter. EverSource Wealth Advisors LLC now owns 3,436 shares of the real estate investment trust's stock worth $31,000 after purchasing an additional 1,498 shares in the last quarter. Danske Bank A S acquired a new position in DiamondRock Hospitality in the third quarter worth about $33,000. Finally, Global Retirement Partners LLC lifted its stake in DiamondRock Hospitality by 12,114.7% during 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 during the period.

About DiamondRock Hospitality

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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