Charles Schwab Investment Management Inc. Reduces Holdings in DiamondRock Hospitality Company $DRH

Key Points

• Charles Schwab Investment Management Inc. reduced its stake in DiamondRock Hospitality Company by 3.2% in the first quarter, holding 4,412,456 shares valued at approximately $34 million.
• Equities research analysts have adjusted price targets for DiamondRock Hospitality, with Evercore ISI lowering its target from $10.00 to $9.00, while Bank of America upgraded it from "underperform" to "buy" with a price objective of $9.50.
• The company reported a $0.35 EPS in its last earnings results, surpassing expectations of $0.33, but its revenue for the quarter saw a 1.2% decline year-over-year.

Charles Schwab Investment Management Inc. reduced its position in shares of DiamondRock Hospitality Company (NYSE:DRH - Free Report) by 3.2% in the first quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 4,412,456 shares of the real estate investment trust's stock after selling 145,124 shares during the quarter. Charles Schwab Investment Management Inc. owned 2.11% of DiamondRock Hospitality worth $34,064,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also bought and sold shares of the company. Centersquare Investment Management LLC increased its stake in DiamondRock Hospitality by 12.9% during the 1st quarter. Centersquare Investment Management LLC now owns 5,967,761 shares of the real estate investment trust's stock valued at $46,071,000 after purchasing an additional 683,839 shares in the last quarter. Jefferies Financial Group Inc. bought a new stake in DiamondRock Hospitality during the 1st quarter valued at about $456,000. Mackenzie Financial Corp increased its stake in DiamondRock Hospitality by 142.6% during the 1st quarter. Mackenzie Financial Corp now owns 33,334 shares of the real estate investment trust's stock valued at $257,000 after purchasing an additional 19,595 shares in the last quarter. Carrera Capital Advisors increased its stake in DiamondRock Hospitality by 15.4% during the 1st quarter. Carrera Capital Advisors now owns 233,671 shares of the real estate investment trust's stock valued at $1,823,000 after purchasing an additional 31,178 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank increased its stake in DiamondRock Hospitality by 15.3% during the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 159,557 shares of the real estate investment trust's stock valued at $1,232,000 after purchasing an additional 21,230 shares in the last quarter.

DiamondRock Hospitality Stock Performance

Shares of DRH stock traded up $0.4150 during trading hours on Friday, reaching $8.4550. The company had a trading volume of 2,544,785 shares, compared to its average volume of 2,782,171. The business has a fifty day moving average price of $7.88 and a 200-day moving average price of $7.78. DiamondRock Hospitality Company has a one year low of $6.18 and a one year high of $10.00. The firm has a market cap of $1.73 billion, a PE ratio of 32.52 and a beta of 1.41. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.30 and a current ratio of 1.30.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The real estate investment trust reported $0.35 EPS for the quarter, topping analysts' consensus estimates of $0.33 by $0.02. The firm had revenue of $305.70 million during the quarter, compared to analyst estimates of $303.70 million. DiamondRock Hospitality had a net margin of 6.04% and a return on equity of 4.23%. The business's revenue for the quarter was down 1.2% on a year-over-year basis. During the same period in the previous year, the business posted $0.34 earnings per share. DiamondRock Hospitality has set its FY 2025 guidance at 0.960-1.060 EPS. Sell-side analysts predict that DiamondRock Hospitality Company will post 0.96 earnings per share for the current fiscal year.

DiamondRock Hospitality Cuts Dividend

The firm also recently disclosed a dividend, which was paid on Friday, July 11th. Investors of record on Tuesday, July 1st were issued a $0.08 dividend. The ex-dividend date of this dividend was Monday, June 30th. This represents a dividend yield of 420.0%. DiamondRock Hospitality's dividend payout ratio (DPR) is presently 123.08%.

Analysts Set New Price Targets

DRH has been the subject of a number of analyst reports. Wells Fargo & Company upgraded shares of DiamondRock Hospitality from a "strong sell" rating to a "hold" rating and raised their price objective for the company from $7.75 to $8.25 in a research note on Tuesday, July 1st. Stifel Nicolaus raised their price objective on shares of DiamondRock Hospitality from $8.00 to $8.25 and gave the company a "hold" rating in a research note on Friday, May 2nd. Bank of America upgraded shares of DiamondRock Hospitality from an "underperform" rating to a "buy" rating and set a $9.50 price target for the company in a research note on Wednesday, April 30th. Evercore ISI reduced their price target on shares of DiamondRock Hospitality from $10.00 to $9.00 and set an "in-line" rating for the company in a research note on Monday, April 28th. Finally, Truist Financial reduced their price target on shares of DiamondRock Hospitality from $10.00 to $9.00 and set a "hold" rating for the company in a research note on Friday, May 30th. One equities research analyst has rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $8.50.

About DiamondRock Hospitality

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels with over 9,700 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment.