DiamondRock Hospitality Company $DRH Shares Bought by Deutsche Bank AG

Key Points

• Deutsche Bank AG significantly increased its stake in DiamondRock Hospitality Company (DRH) by 723.6%, acquiring over 1.99 million shares, which now amounts to approximately 1.09% of the company.
• Several hedge funds, including LPL Financial and Federated Hermes, also boosted their positions in DRH during the last quarter, reflecting growing institutional interest.
• Despite mixed analysts' ratings with a consensus rating of "Hold", the stock has a current average target price of $8.50, with recent upgrades from some brokerages indicating potential for growth.

Deutsche Bank AG boosted its stake in shares of DiamondRock Hospitality Company (NYSE:DRH - Free Report) by 723.6% during the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 2,268,828 shares of the real estate investment trust's stock after buying an additional 1,993,345 shares during the period. Deutsche Bank AG owned approximately 1.09% of DiamondRock Hospitality worth $17,515,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Versant Capital Management Inc increased its stake in DiamondRock Hospitality by 156.3% in the first quarter. Versant Capital Management Inc now owns 3,699 shares of the real estate investment trust's stock worth $29,000 after purchasing an additional 2,256 shares during the period. GF Fund Management CO. LTD. purchased a new stake in DiamondRock Hospitality in the fourth quarter worth $34,000. State of Wyoming purchased a new stake in DiamondRock Hospitality in the fourth quarter worth $54,000. Caxton Associates LP purchased a new stake in DiamondRock Hospitality in the fourth quarter worth $92,000. Finally, PharVision Advisers LLC purchased a new stake in DiamondRock Hospitality in the fourth quarter worth $98,000.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on DRH shares. Morgan Stanley decreased their price target on shares of DiamondRock Hospitality from $9.00 to $7.00 and set an "equal weight" rating for the company in a research note on Tuesday, April 22nd. Evercore ISI dropped their price objective on DiamondRock Hospitality from $10.00 to $9.00 and set an "in-line" rating on the stock in a research report on Monday, April 28th. Bank of America raised DiamondRock Hospitality from an "underperform" rating to a "buy" rating and set a $9.50 price target for the company in a report on Wednesday, April 30th. Wells Fargo & Company upgraded shares of DiamondRock Hospitality from a "strong sell" rating to a "hold" rating and boosted their target price for the company from $7.75 to $8.25 in a research report on Tuesday, July 1st. Finally, Stifel Nicolaus boosted their price target on DiamondRock Hospitality from $8.00 to $8.25 and gave the company a "hold" rating in a report on Friday, May 2nd. Six equities research analysts have rated the stock with a hold rating and one has given a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $8.50.

DiamondRock Hospitality Stock Up 0.9%

Shares of DRH traded up $0.08 during midday trading on Monday, hitting $7.98. The company had a trading volume of 604,724 shares, compared to its average volume of 2,667,981. 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 company's 50-day simple moving average is $7.84 and its 200-day simple moving average is $7.79. The firm has a market capitalization of $1.63 billion, a P/E ratio of 30.67 and a beta of 1.41. DiamondRock Hospitality Company has a 1 year low of $6.18 and a 1 year high of $10.00.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The real estate investment trust reported $0.35 earnings per share for the quarter, beating analysts' consensus estimates of $0.33 by $0.02. DiamondRock Hospitality had a return on equity of 4.23% and a net margin of 6.04%. The company had revenue of $305.70 million during the quarter, compared to analysts' expectations of $303.70 million. During the same quarter in the previous year, the business earned $0.34 earnings per share. The firm's revenue for the quarter was down 1.2% on a year-over-year basis. As a group, sell-side analysts expect that DiamondRock Hospitality Company will post 0.96 EPS for the current year.

DiamondRock Hospitality Cuts Dividend

The business also recently announced a dividend, which was paid on Friday, July 11th. Stockholders 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 payout ratio is presently 123.08%.

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.