Charles Schwab Investment Management Inc. Cuts Stock Position 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. lessened its stake in DiamondRock Hospitality Company (NYSE:DRH - Free Report) by 3.2% during the 1st quarter, according to its most recent disclosure 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 approximately 2.11% of DiamondRock Hospitality worth $34,064,000 at the end of the most recent reporting period.

Several other hedge funds have also bought and sold shares of the stock. Alyeska Investment Group L.P. raised its holdings in shares of DiamondRock Hospitality by 16.3% during the 4th quarter. Alyeska Investment Group L.P. now owns 8,576,077 shares of the real estate investment trust's stock worth $77,442,000 after acquiring an additional 1,201,955 shares in the last quarter. Bank of America Corp DE grew its stake in shares of DiamondRock Hospitality by 78.8% in the 4th quarter. Bank of America Corp DE now owns 6,953,022 shares of the real estate investment trust's stock worth $62,786,000 after buying an additional 3,064,117 shares in the last quarter. Centersquare Investment Management LLC increased its holdings in shares of DiamondRock Hospitality by 12.9% in the 1st quarter. Centersquare Investment Management LLC now owns 5,967,761 shares of the real estate investment trust's stock worth $46,071,000 after buying an additional 683,839 shares during the last quarter. H 2 Credit Manager LP raised its position in shares of DiamondRock Hospitality by 36.5% during the 4th quarter. H 2 Credit Manager LP now owns 3,741,445 shares of the real estate investment trust's stock valued at $33,785,000 after buying an additional 1,000,000 shares in the last quarter. Finally, Northern Trust Corp grew its position in DiamondRock Hospitality by 15.6% in the fourth quarter. Northern Trust Corp now owns 3,250,978 shares of the real estate investment trust's stock worth $29,356,000 after acquiring an additional 438,310 shares in the last quarter.

Wall Street Analyst Weigh In

Several research analysts have commented on the stock. Evercore ISI dropped their price objective 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. Bank of America raised DiamondRock Hospitality from an "underperform" rating to a "buy" rating and set a $9.50 target price on the stock in a research note on Wednesday, April 30th. Wells Fargo & Company upgraded DiamondRock Hospitality from a "strong sell" rating to a "hold" rating and boosted their price objective for the company from $7.75 to $8.25 in a report on Tuesday, July 1st. Stifel Nicolaus increased their target price on DiamondRock Hospitality from $8.00 to $8.25 and gave the stock a "hold" rating in a research note on Friday, May 2nd. Finally, Truist Financial reduced their price target on shares of DiamondRock Hospitality from $10.00 to $9.00 and set a "hold" rating on the stock in a research note on Friday, May 30th. One research analyst has rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $8.50.

DiamondRock Hospitality Stock Performance

NYSE:DRH traded up $0.3850 during midday trading on Friday, hitting $8.4250. The company's stock had a trading volume of 1,477,378 shares, compared to its average volume of 2,650,806. DiamondRock Hospitality Company has a fifty-two week low of $6.18 and a fifty-two week high of $10.00. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.30 and a quick ratio of 1.30. The firm has a market cap of $1.73 billion, a P/E ratio of 32.39 and a beta of 1.41. The firm's 50 day moving average is $7.86 and its 200-day moving average is $7.78.

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

DiamondRock Hospitality Cuts Dividend

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

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.