39,021,507 Shares in DiamondRock Hospitality Company $DRH Purchased by BlackRock Inc.

Key Points

• BlackRock acquired 39.0 million shares of DiamondRock Hospitality during the second quarter, valued at approximately $475.3 million and representing a 19.07% ownership stake.
• DiamondRock reported quarterly earnings of $0.44 per share, surpassing the $0.22 analyst estimate, while revenue rose 4.1% year over year to $318.3 million. Analysts maintain a “Moderate Buy” consensus with a $12.32 average price target.
• The REIT increased its quarterly dividend from $0.09 to $0.11 per share, implying an annualized dividend of $0.44 and a yield of approximately 3.5%.

BlackRock Inc. purchased a new stake in shares of DiamondRock Hospitality Company (NYSE:DRH - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 39,021,507 shares of the real estate investment trust's stock, valued at approximately $475,282,000. BlackRock Inc. owned 19.07% of DiamondRock Hospitality as of its most recent SEC filing.

Several other large investors have also recently added to or reduced their stakes in the company. State Street Corp lifted its position in DiamondRock Hospitality by 0.8% in the second quarter. State Street Corp now owns 12,587,578 shares of the real estate investment trust's stock worth $97,400,000 after purchasing an additional 93,929 shares during the period. Bank of America Corp DE increased its stake in DiamondRock Hospitality by 17.5% in the second 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 acquiring an additional 1,377,897 shares during the period. Alyeska Investment Group L.P. increased its stake in DiamondRock Hospitality by 5.5% in the third quarter. Alyeska Investment Group L.P. now owns 9,152,343 shares of the real estate investment trust's stock valued at $72,853,000 after acquiring an additional 475,611 shares during the period. Centersquare Investment Management LLC raised its position in DiamondRock Hospitality by 3.2% in the fourth quarter. Centersquare Investment Management LLC now owns 7,780,988 shares of the real estate investment trust's stock worth $69,718,000 after purchasing an additional 244,013 shares in the last quarter. Finally, Cohen & Steers Inc. acquired a new position in DiamondRock Hospitality in the fourth quarter worth about $59,231,000.

Wall Street Analyst Weigh In

DRH has been the topic of several recent analyst reports. Stifel Nicolaus boosted their price target on DiamondRock Hospitality from $12.50 to $13.25 and gave the company a "hold" rating in a research note on Friday, July 31st. Bank of America lifted their price objective on DiamondRock Hospitality from $12.50 to $13.00 and gave the company a "buy" rating in a report on Monday, July 20th. Wells Fargo & Company boosted their target price on shares of DiamondRock Hospitality from $12.00 to $13.00 and gave the company an "equal weight" rating in a research note on Thursday, July 23rd. Citigroup upped their target price on shares of DiamondRock Hospitality from $11.00 to $13.00 and gave the stock a "neutral" rating in a report on Wednesday, July 22nd. Finally, Morgan Stanley increased their target price on shares of DiamondRock Hospitality from $10.00 to $11.00 and gave the stock an "equal weight" rating in a research report on Tuesday, August 18th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $12.32.

Insiders Place Their Bets

In other DiamondRock Hospitality news, Director Kathleen Merrill sold 20,000 shares of the company's stock in a transaction on Friday, June 12th. The stock was sold at an average price of $11.88, for a total transaction of $237,600.00. Following the transaction, the director owned 84,335 shares of the company's stock, valued at approximately $1,001,899.80. This represents a 19.17% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.90% of the stock is owned by company insiders.

DiamondRock Hospitality Stock Down 0.6%

Shares of NYSE:DRH opened at $12.74 on Tuesday. 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 firm has a market cap of $2.61 billion, a P/E ratio of 50.96, a P/E/G ratio of 4.50 and a beta of 0.98. DiamondRock Hospitality Company has a 12 month low of $7.47 and a 12 month high of $13.79. The company's 50-day moving average price is $12.45 and its two-hundred day moving average price is $11.00.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last announced its earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share for the quarter, topping analysts' consensus estimates of $0.22 by $0.22. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The company had revenue of $318.29 million during the quarter, compared to the consensus estimate of $314.98 million. During the same period in the previous year, the firm posted $0.35 earnings per share. The company's revenue was up 4.1% on a year-over-year basis. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. As a group, research analysts forecast that DiamondRock Hospitality Company will post 0.96 EPS for the current fiscal year.

DiamondRock Hospitality Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 30th will be given a $0.11 dividend. This is a boost from DiamondRock Hospitality's previous quarterly dividend of $0.09. The ex-dividend date is Wednesday, September 30th. This represents a $0.44 annualized dividend and a yield of 3.5%. DiamondRock Hospitality's dividend payout ratio is presently 60.27%.

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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