Bank of America Corp DE Acquires New Position in DiamondRock Hospitality Company $DRH

Key Points

• Bank of America acquired a new 10.65 million-share stake in DiamondRock Hospitality during the second quarter, valued at approximately $129.7 million and representing about 5.2% of the hotel REIT.
• DiamondRock reported quarterly earnings of $0.44 per share, beating estimates by $0.22, while revenue rose 4.1% year over year to $318.3 million.
• The company increased its quarterly dividend from $0.09 to $0.11 per share, equating to an annualized dividend of $0.44 and a 3.6% yield; analysts maintain a “Moderate Buy” consensus with a $12.82 target price.

Bank of America Corp DE bought a new stake in DiamondRock Hospitality Company (NYSE:DRH - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund bought 10,649,401 shares of the real estate investment trust's stock, valued at approximately $129,710,000. Bank of America Corp DE owned about 5.20% of DiamondRock Hospitality at the end of the most recent reporting period.

Several other hedge funds have also made changes to their positions in the company. Allworth Financial LP boosted its stake 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 buying an additional 1,697 shares during the period. EverSource Wealth Advisors LLC raised its stake in shares of DiamondRock Hospitality by 77.3% in the 4th quarter. EverSource Wealth Advisors LLC now owns 3,436 shares of the real estate investment trust's stock valued at $31,000 after acquiring an additional 1,498 shares during the period. Global Retirement Partners LLC acquired a new position in shares of DiamondRock Hospitality in the 2nd quarter worth approximately $50,000. C M Bidwell & Associates Ltd. acquired a new position in shares of DiamondRock Hospitality in the 2nd quarter worth approximately $84,000. Finally, Quantbot Technologies LP acquired a new position in shares of DiamondRock Hospitality in the 2nd quarter worth approximately $106,000.

DiamondRock Hospitality Stock Performance

Shares of DiamondRock Hospitality stock opened at $12.25 on Friday. The business has a 50-day simple moving average of $12.52 and a 200-day simple moving average of $11.30. 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 Company has a one year low of $7.47 and a one year high of $13.79. The company has a market cap of $2.51 billion, a PE ratio of 49.00, a P/E/G ratio of 4.50 and a beta of 0.97.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last issued its earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share for the quarter, beating 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 quarter last year, the company earned $0.35 earnings per share. The firm's revenue 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, equities research analysts forecast that DiamondRock Hospitality Company will post 0.96 EPS for the current fiscal year.

DiamondRock Hospitality Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 30th will be paid a dividend of $0.11 per share. The ex-dividend date is Wednesday, September 30th. This is an increase from DiamondRock Hospitality's previous quarterly dividend of $0.09. This represents a $0.44 dividend on an annualized basis and a dividend yield of 3.6%. DiamondRock Hospitality's payout ratio is presently 60.27%.

Analyst Ratings Changes

Several research firms recently issued reports on DRH. Stifel Nicolaus boosted their price objective on DiamondRock Hospitality from $12.50 to $13.25 and gave the company a "hold" rating in a report on Friday, July 31st. Morgan Stanley raised their target price on DiamondRock Hospitality from $10.00 to $11.00 and gave the company an "equal weight" rating in a report on Tuesday, August 18th. Citigroup lifted their target price on DiamondRock Hospitality from $11.00 to $13.00 and gave the company a "neutral" rating in a research report on Wednesday, July 22nd. Barclays boosted their price target on shares of DiamondRock Hospitality from $12.00 to $14.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 27th. Finally, LADENBURG THALM/SH SH increased their price target on shares of DiamondRock Hospitality from $13.00 to $14.00 and gave the stock a "buy" rating in a research report on Thursday, June 18th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, DiamondRock Hospitality currently has an average rating of "Moderate Buy" and a consensus target price of $12.82.

DiamondRock Hospitality Company Profile

DiamondRock Hospitality Company NYSE: DRH is a self-advised real estate investment trust that owns a portfolio of hotels and resorts in the United States. The company focuses on lodging properties in locations that appeal to business and leisure travelers, including gateway cities, destination resorts and other high-demand markets.

DiamondRock's properties operate under a combination of nationally recognized hotel brands and independent or company-developed concepts. Its portfolio includes full-service hotels, lifestyle properties and resort accommodations, with services such as guest rooms, restaurants, meeting and event facilities, recreational amenities and other hospitality offerings.

The company was formed in 2004 through a spin-off from Marriott International and is headquartered in Bethesda, Maryland.

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