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 from $11.00 to $12.00, while keeping an equal weight rating. The new target implies about 9.9% upside from the current share price.
• Other analysts have also recently adjusted their views, with targets ranging from $9.60 to $12.00. Overall, the stock has an average Hold rating and an average price target of $11.09.
• DiamondRock Hospitality shares were down 0.7% to $10.92, but the company recently beat quarterly EPS estimates and posted revenue slightly above expectations. Insider selling was also noted, including a director sale of 20,000 shares.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) had its price objective increased by equities researchers at Wells Fargo & Company from $11.00 to $12.00 in a report issued on Monday,Benzinga reports. The firm presently has an "equal weight" rating on the real estate investment trust's stock. Wells Fargo & Company's target price indicates a potential upside of 9.93% from the company's current price.

Other analysts also recently issued research reports about the company. Morgan Stanley upped their price target on DiamondRock Hospitality from $9.50 to $9.60 and gave the stock an "equal weight" rating in a research note on Tuesday, May 12th. Citigroup boosted their target price on DiamondRock Hospitality from $9.50 to $11.00 and gave the stock a "neutral" rating in a report on Wednesday, May 6th. LADENBURG THALM/SH SH initiated coverage on DiamondRock Hospitality in a report on Thursday, March 26th. They set a "buy" rating and a $12.00 price target for the company. Stifel Nicolaus lifted their price target on DiamondRock Hospitality from $11.00 to $11.25 and gave the stock a "hold" rating in a research report on Monday, May 11th. Finally, Truist Financial upped their price target on shares of DiamondRock Hospitality from $11.00 to $12.00 and gave the stock a "buy" rating in a research note on Tuesday, May 26th. Three investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $11.09.

DiamondRock Hospitality Stock Down 0.7%

Shares of DiamondRock Hospitality stock traded down $0.07 during trading on Monday, hitting $10.92. The company's stock had a trading volume of 188,098 shares, compared to its average volume of 2,309,765. DiamondRock Hospitality has a 52 week low of $7.39 and a 52 week high of $11.27. The company has a market capitalization of $2.23 billion, a PE ratio of 43.64, a P/E/G ratio of 4.50 and a beta of 0.99. The company has a fifty day simple moving average of $10.19 and a two-hundred day simple moving average of $9.64. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.64 and a current 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 EPS for the quarter, topping the consensus estimate of $0.24 by $0.03. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The business had revenue of $274.53 million for the quarter, compared to analyst estimates of $273.18 million. During the same quarter in the previous year, the firm posted $0.24 earnings per share. DiamondRock Hospitality's quarterly revenue was down 1.6% on a year-over-year basis. Equities research analysts predict that DiamondRock Hospitality will post 0.96 earnings per share for the current year.

Insider Buying and Selling at DiamondRock Hospitality

In other news, Director Michael A. Hartmeier sold 20,000 shares of the business's stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $10.46, for a total value of $209,200.00. Following the completion of the transaction, the director owned 95,354 shares in the company, valued at $997,402.84. The trade was a 17.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Steve Spierto sold 4,000 shares of the 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 sale, the chief accounting officer directly owned 77,977 shares in the company, valued at $774,311.61. This trade represents a 4.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.90% of the stock is owned by insiders.

Institutional Trading of DiamondRock Hospitality

A number of institutional investors have recently made changes to their positions in DRH. Cohen & Steers Inc. bought a new position in DiamondRock Hospitality during the fourth quarter valued at approximately $59,231,000. SG Americas Securities LLC raised its stake 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 valued at $39,098,000 after buying an additional 2,147,881 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund raised its stake in DiamondRock Hospitality by 907.2% during the 4th quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 2,292,360 shares of the real estate investment trust's stock valued at $20,540,000 after buying an additional 2,064,760 shares during the last quarter. Qube Research & Technologies Ltd lifted its holdings in shares of DiamondRock Hospitality by 469.0% during the 3rd quarter. Qube Research & Technologies Ltd now owns 2,002,863 shares of the real estate investment trust's stock valued at $15,943,000 after buying an additional 1,650,871 shares during the period. Finally, Bank of America Corp DE lifted its holdings in shares of 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 valued at $70,717,000 after buying an additional 1,377,897 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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