DiamondRock Hospitality Company $DRH Shares Sold by Vanguard Group Inc.

Key Points

• Vanguard Group Inc. has reduced its stake in DiamondRock Hospitality Company by 2.3%, now holding 32 million shares valued at approximately $248 million.
• Several hedge funds have altered their positions, with Centersquare Investment Management increasing its holdings by 12.9%, indicating mixed investor sentiment.
• Analysts' ratings are varied, with Bank of America upgrading the stock to a "buy" and setting a target price of $9.50, while others maintain a "hold" rating with an average target price of $8.50.

Vanguard Group Inc. cut its position in shares of DiamondRock Hospitality Company (NYSE:DRH - Free Report) by 2.3% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 32,173,954 shares of the real estate investment trust's stock after selling 746,451 shares during the period. Vanguard Group Inc. owned approximately 15.41% of DiamondRock Hospitality worth $248,383,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Bank of America Corp DE grew its stake in shares of DiamondRock Hospitality by 78.8% during the fourth quarter. Bank of America Corp DE now owns 6,953,022 shares of the real estate investment trust's stock valued at $62,786,000 after buying an additional 3,064,117 shares during the last quarter. Alyeska Investment Group L.P. boosted its holdings in 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 valued at $77,442,000 after acquiring an additional 1,201,955 shares during the period. GRS Advisors LLC bought a new position in DiamondRock Hospitality in the 4th quarter valued at $9,919,000. Sophron Capital Management L.P. purchased a new stake in DiamondRock Hospitality in the fourth quarter worth $9,811,000. Finally, H 2 Credit Manager LP boosted its stake in shares of DiamondRock Hospitality by 36.5% during the fourth 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 purchasing an additional 1,000,000 shares during the period.

DiamondRock Hospitality Stock Performance

Shares of DRH stock traded up $0.0150 during trading hours on Thursday, hitting $8.0450. The company's stock had a trading volume of 1,873,605 shares, compared to its average volume of 2,658,955. The stock has a market cap of $1.65 billion, a PE ratio of 30.94 and a beta of 1.41. DiamondRock Hospitality Company has a 12-month low of $6.18 and a 12-month high of $10.00. The company has a 50 day moving average of $7.85 and a 200 day moving average of $7.79. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.64.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last posted its earnings results on Thursday, August 7th. The real estate investment trust reported $0.35 earnings per share (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 period in the previous year, the firm posted $0.34 earnings per share. The firm'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. On average, sell-side analysts forecast that DiamondRock Hospitality Company will post 0.96 EPS for the current fiscal year.

DiamondRock Hospitality Cuts Dividend

The business also recently disclosed a dividend, which was paid on Friday, July 11th. Shareholders of record on Tuesday, July 1st were given a $0.08 dividend. This represents a yield of 420.0%. The ex-dividend date was Monday, June 30th. DiamondRock Hospitality's dividend payout ratio is currently 123.08%.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on the stock. Wells Fargo & Company upgraded shares of DiamondRock Hospitality from a "strong sell" rating to a "hold" rating and lifted their price objective for the company from $7.75 to $8.25 in a report on Tuesday, July 1st. 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 on the stock in a research report on Wednesday, April 30th. Truist Financial decreased their price objective on shares of DiamondRock Hospitality from $10.00 to $9.00 and set a "hold" rating for the company in a research report on Friday, May 30th. Finally, Stifel Nicolaus boosted their target price on shares of DiamondRock Hospitality from $8.00 to $8.25 and gave the stock a "hold" rating in a research report on Friday, May 2nd. One analyst has rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $8.50.

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.