DiamondRock Hospitality Company $DRH Shares Purchased by UBS Group AG

Key Points

• UBS Group AG increased its stake in DiamondRock Hospitality by 49.9% in the fourth quarter, buying 874,536 additional shares and bringing its total holdings to 2,627,787 shares valued at about $23.5 million.
• DiamondRock Hospitality reported better-than-expected quarterly earnings, posting $0.27 EPS versus the $0.24 consensus estimate and slightly topping revenue expectations at $274.53 million.
• The company announced a quarterly dividend of $0.09 per share, equal to an annualized yield of 3.3%; meanwhile, analysts currently rate the stock a consensus Hold with an average price target of $10.81.

UBS Group AG boosted its holdings in DiamondRock Hospitality Company (NYSE:DRH - Free Report) by 49.9% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 2,627,787 shares of the real estate investment trust's stock after buying an additional 874,536 shares during the period. UBS Group AG owned 1.29% of DiamondRock Hospitality worth $23,545,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently added to or reduced their stakes in DRH. First Horizon Corp boosted its stake in DiamondRock Hospitality by 54.9% in the 4th quarter. First Horizon Corp now owns 3,214 shares of the real estate investment trust's stock worth $29,000 after buying an additional 1,139 shares during the last quarter. Danske Bank A S acquired a new stake in DiamondRock Hospitality in the 3rd quarter worth about $33,000. Mirae Asset Global Investments Co. Ltd. boosted its stake in DiamondRock Hospitality by 32.5% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,990 shares of the real estate investment trust's stock worth $54,000 after buying an additional 1,470 shares during the last quarter. State of Wyoming acquired a new stake in DiamondRock Hospitality in the 2nd quarter worth about $58,000. Finally, Smartleaf Asset Management LLC raised its holdings in shares of DiamondRock Hospitality by 33.8% in the 2nd quarter. Smartleaf Asset Management LLC now owns 9,294 shares of the real estate investment trust's stock worth $72,000 after purchasing an additional 2,349 shares during the period.

DiamondRock Hospitality Stock Performance

Shares of NYSE:DRH opened at $10.79 on Monday. The company has a market cap of $2.21 billion, a P/E ratio of 43.16, a PEG ratio of 4.50 and a beta of 0.99. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.64 and a current ratio of 1.64. DiamondRock Hospitality Company has a one year low of $7.31 and a one year high of $10.90. The business's 50-day simple moving average is $9.86 and its 200 day simple moving average is $9.34.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last announced its earnings results on Thursday, February 26th. The real estate investment trust reported $0.27 EPS for the quarter, beating the consensus estimate of $0.24 by $0.03. The business had revenue of $274.53 million for the quarter, compared to the consensus estimate of $273.18 million. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The company's revenue was down 1.6% on a year-over-year basis. During the same period last year, the business posted $0.24 EPS. DiamondRock Hospitality has set its FY 2026 guidance at 1.090-1.160 EPS. On average, sell-side analysts forecast that DiamondRock Hospitality Company will post 0.96 earnings per share for the current fiscal year.

DiamondRock Hospitality Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, July 14th. Investors of record on Tuesday, June 30th will be issued a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a dividend yield of 3.3%. The ex-dividend date is Tuesday, June 30th. DiamondRock Hospitality's dividend payout ratio (DPR) is presently 76.60%.

Insider Activity at DiamondRock Hospitality

In related news, CAO Steve Spierto sold 4,000 shares of the firm's stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $9.93, for a total transaction of $39,720.00. Following the sale, the chief accounting officer directly owned 77,977 shares in the company, valued at approximately $774,311.61. This trade represents a 4.88% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 0.90% of the company's stock.

Analysts Set New Price Targets

A number of research firms have recently commented on DRH. Deutsche Bank Aktiengesellschaft upgraded DiamondRock Hospitality from a "hold" rating to a "buy" rating and raised their price objective for the stock from $10.00 to $12.00 in a report on Tuesday, January 13th. LADENBURG THALM/SH SH began coverage on DiamondRock Hospitality in a report on Thursday, March 26th. They issued a "buy" rating and a $12.00 price objective on the stock. Citigroup raised their price objective on DiamondRock Hospitality from $9.50 to $11.00 and gave the stock a "neutral" rating in a report on Wednesday, May 6th. Wells Fargo & Company raised their price objective on DiamondRock Hospitality from $10.00 to $11.00 and gave the stock an "equal weight" rating in a report on Wednesday, April 22nd. Finally, Morgan Stanley raised their price objective on DiamondRock Hospitality from $9.00 to $9.50 and gave the stock an "equal weight" rating in a report on Friday, April 10th. Three analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $10.81.

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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