Dark Forest Capital Management LP Has $5.80 Million Stake in DiamondRock Hospitality Company $DRH

Key Points

• Dark Forest Capital Management LP significantly increased its stake in DiamondRock Hospitality Company by purchasing 737,850 shares, raising its ownership to 750,823 shares valued at approximately $5.8 million.
• The company reported a quarterly earnings per share (EPS) of $0.35, exceeding estimates, but its revenue declined by 1.2% year-over-year, with future guidance for FY 2025 set at an EPS of 0.96-1.06.
• DiamondRock Hospitality will pay a quarterly dividend of $0.08 per share on October 14th, with an annualized yield of 3.7%, despite a high dividend payout ratio of 123.08%.

Dark Forest Capital Management LP grew its holdings in DiamondRock Hospitality Company (NYSE:DRH - Free Report) by 5,687.6% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 750,823 shares of the real estate investment trust's stock after acquiring an additional 737,850 shares during the quarter. Dark Forest Capital Management LP owned 0.36% of DiamondRock Hospitality worth $5,796,000 at the end of the most recent reporting period.

Several other large investors also recently modified their holdings of DRH. Price T Rowe Associates Inc. MD increased its holdings in shares of DiamondRock Hospitality by 20.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 443,153 shares of the real estate investment trust's stock worth $4,002,000 after acquiring an additional 76,262 shares in the last quarter. The Manufacturers Life Insurance Company increased its holdings in shares of DiamondRock Hospitality by 16.2% in the fourth quarter. The Manufacturers Life Insurance Company now owns 134,256 shares of the real estate investment trust's stock worth $1,212,000 after acquiring an additional 18,751 shares in the last quarter. Northern Trust Corp increased its holdings in shares of 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. Mercer Global Advisors Inc. ADV increased its holdings in shares of DiamondRock Hospitality by 32.9% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 63,610 shares of the real estate investment trust's stock worth $574,000 after acquiring an additional 15,748 shares in the last quarter. Finally, AXA S.A. boosted its position in shares of DiamondRock Hospitality by 200.8% during the fourth quarter. AXA S.A. now owns 45,706 shares of the real estate investment trust's stock worth $413,000 after buying an additional 30,512 shares during the period.

DiamondRock Hospitality Stock Down 0.3%

NYSE DRH traded down $0.03 during trading hours on Friday, hitting $8.58. 2,212,023 shares of the company traded hands, compared to its average volume of 2,445,280. The business's 50-day moving average is $8.05 and its 200-day moving average is $7.77. DiamondRock Hospitality Company has a twelve month low of $6.18 and a twelve month high of $10.00. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.30 and a current ratio of 1.30. The stock has a market capitalization of $1.76 billion, a price-to-earnings ratio of 32.98 and a beta of 1.39.

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

DiamondRock Hospitality Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, October 14th. Investors of record on Tuesday, September 30th will be given a dividend of $0.08 per share. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $0.32 annualized dividend and a yield of 3.7%. DiamondRock Hospitality's dividend payout ratio is 123.08%.

Wall Street Analysts Forecast Growth

DRH has been the subject of several recent research reports. Wells Fargo & Company upped their price objective on DiamondRock Hospitality from $8.25 to $9.00 and gave the stock an "equal weight" rating in a research report on Wednesday, August 27th. Truist Financial reduced their price objective on DiamondRock Hospitality from $10.00 to $9.00 and set a "hold" rating for the company in a research report on Friday, May 30th. One investment analyst has rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, DiamondRock Hospitality has an average rating of "Hold" and a consensus target price of $8.63.

DiamondRock Hospitality Profile

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.