DiamondRock Hospitality (NYSE:DRH) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Key Points

• Wells Fargo raised its price target on DiamondRock Hospitality to $11 (from $10) while keeping an "equal weight" rating, implying roughly a 7.16% upside.
• Deutsche Bank upgraded DRH to a "buy" and lifted its target to $12, but analyst coverage is mixed overall — 4 Buys and 6 Holds with an average target of $10.36.
• DRH beat quarterly EPS expectations ($0.27 vs. $0.24), issued FY2026 guidance of $1.09–$1.16 EPS, and currently trades around $10.27 with a market cap near $2.1B and a P/E of about 41.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) had its price objective upped by stock analysts at Wells Fargo & Company from $10.00 to $11.00 in a report issued on Wednesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the real estate investment trust's stock. Wells Fargo & Company's target price suggests a potential upside of 7.16% from the company's previous close.

A number of other equities analysts also recently weighed in on DRH. Deutsche Bank Aktiengesellschaft upgraded DiamondRock Hospitality from a "hold" rating to a "buy" rating and upped their target price for the company from $10.00 to $12.00 in a report on Tuesday, January 13th. Barclays started coverage on DiamondRock Hospitality in a research note on Tuesday, January 6th. They issued an "equal weight" rating and a $10.00 price target for the company. LADENBURG THALM/SH SH started coverage on DiamondRock Hospitality in a research note on Thursday, March 26th. They issued a "buy" rating and a $12.00 price target for the company. Truist Financial raised DiamondRock Hospitality from a "hold" rating to a "buy" rating and boosted their price target for the company from $10.00 to $11.00 in a research note on Friday, January 9th. 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 research note on Friday, April 10th. Four equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, DiamondRock Hospitality currently has an average rating of "Hold" and an average target price of $10.36.

DiamondRock Hospitality Stock Down 0.4%

Shares of DRH traded down $0.05 during trading hours on Wednesday, reaching $10.27. The company's stock had a trading volume of 313,175 shares, compared to its average volume of 2,441,021. The firm has a market cap of $2.10 billion, a price-to-earnings ratio of 41.06, a P/E/G ratio of 4.50 and a beta of 0.99. DiamondRock Hospitality has a 1-year low of $7.02 and a 1-year high of $10.67. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 0.70. The company has a 50 day moving average of $9.78 and a two-hundred day moving average of $9.15.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last issued its earnings results on Thursday, February 26th. The real estate investment trust reported $0.27 earnings per share for the quarter, beating 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 firm's quarterly revenue was down 1.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.24 EPS. DiamondRock Hospitality has set its FY 2026 guidance at 1.090-1.160 EPS. As a group, research analysts predict that DiamondRock Hospitality will post 0.96 EPS for the current fiscal year.

Insider Transactions at DiamondRock Hospitality

In other DiamondRock Hospitality news, CAO Steve Spierto sold 4,000 shares of the company's stock in a transaction that occurred 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 sale, the chief accounting officer owned 77,977 shares of the company's stock, valued at $774,311.61. This represents a 4.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.90% of the stock is owned by insiders.

Institutional Investors Weigh In On DiamondRock Hospitality

Large investors have recently added to or reduced their stakes in the stock. Allworth Financial LP boosted its position in DiamondRock Hospitality by 146.0% during the fourth quarter. Allworth Financial LP now owns 2,859 shares of the real estate investment trust's stock worth $26,000 after purchasing an additional 1,697 shares during the period. First Horizon Corp boosted its position in DiamondRock Hospitality by 54.9% during the fourth quarter. First Horizon Corp now owns 3,214 shares of the real estate investment trust's stock worth $29,000 after purchasing an additional 1,139 shares during the period. EverSource Wealth Advisors LLC boosted its position in DiamondRock Hospitality by 77.3% during 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 during the period. Global Retirement Partners LLC boosted its position 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. Finally, Danske Bank A S bought a new stake in DiamondRock Hospitality during the third quarter worth approximately $33,000.

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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