Bank of New York Mellon Corp Acquires New Position in DiamondRock Hospitality Company $DRH

Key Points

• Bank of New York Mellon acquired 1.63 million shares of DiamondRock Hospitality, worth approximately $19.8 million, giving it a 0.80% stake in the REIT.
• Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $12.53; recent targets range from $11 to $14.
• DiamondRock reported quarterly EPS of $0.44, exceeding estimates of $0.22, while revenue increased 4.1% year over year. The company also raised its quarterly dividend to $0.11 per share, implying a 3.5% annual yield.

Bank of New York Mellon Corp acquired a new stake in DiamondRock Hospitality Company (NYSE:DRH - Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 1,626,355 shares of the real estate investment trust's stock, valued at approximately $19,809,000. Bank of New York Mellon Corp owned 0.80% of DiamondRock Hospitality at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in DRH. Allworth Financial LP boosted its holdings in shares of DiamondRock Hospitality by 146.0% in the fourth quarter. Allworth Financial LP now owns 2,859 shares of the real estate investment trust's stock valued at $26,000 after purchasing an additional 1,697 shares during the period. EverSource Wealth Advisors LLC increased its holdings in DiamondRock Hospitality by 77.3% during the 4th 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. Danske Bank A S purchased a new position in DiamondRock Hospitality during the 3rd quarter worth $33,000. Global Retirement Partners LLC raised its position in DiamondRock Hospitality by 12,114.7% during the 4th quarter. Global Retirement Partners LLC now owns 4,153 shares of the real estate investment trust's stock valued at $37,000 after purchasing an additional 4,119 shares in the last quarter. Finally, State of Wyoming bought a new stake in DiamondRock Hospitality during the 2nd quarter valued at $58,000.

Wall Street Analyst Weigh In

DRH has been the subject of several research reports. Morgan Stanley upped their target price on DiamondRock Hospitality from $10.00 to $11.00 and gave the stock an "equal weight" rating in a report on Tuesday, August 18th. Bank of America raised their price target on DiamondRock Hospitality from $12.50 to $13.00 and gave the company a "buy" rating in a research note on Monday, July 20th. Barclays lifted their price objective on DiamondRock Hospitality from $12.00 to $14.00 and gave the company an "equal weight" rating in a report on Thursday. Wells Fargo & Company upped their price objective on shares of DiamondRock Hospitality from $12.00 to $13.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 23rd. Finally, Zacks Research upgraded shares of DiamondRock Hospitality from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 19th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $12.53.

Insider Buying and Selling at DiamondRock Hospitality

In related news, Director Kathleen Merrill sold 20,000 shares of DiamondRock Hospitality stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $11.88, for a total value of $237,600.00. Following the completion of the transaction, the director owned 84,335 shares in the company, valued at $1,001,899.80. The trade was a 19.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.90% of the stock is currently owned by corporate insiders.

DiamondRock Hospitality Price Performance

NYSE:DRH opened at $12.70 on Monday. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.64 and a quick ratio of 1.64. The company has a 50 day moving average price of $12.49 and a 200-day moving average price of $11.09. DiamondRock Hospitality Company has a 1-year low of $7.47 and a 1-year high of $13.79. The firm has a market cap of $2.60 billion, a price-to-earnings ratio of 50.80, a price-to-earnings-growth ratio of 4.50 and a beta of 0.98.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share (EPS) 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 firm had revenue of $318.29 million for the quarter, compared to the consensus estimate of $314.98 million. During the same period in the prior year, the firm posted $0.35 earnings per share. The firm's quarterly 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. Equities research analysts forecast that DiamondRock Hospitality Company will post 0.96 EPS for the current year.

DiamondRock Hospitality Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 30th will be given a dividend of $0.11 per share. 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 dividend on an annualized basis and a dividend yield of 3.5%. DiamondRock Hospitality's payout ratio is 60.27%.

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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