Cbre Investment Management Listed Real Assets LLC Buys 1,100,070 Shares of DiamondRock Hospitality Company $DRH

Key Points

• Cbre Investment Management Listed Real Assets LLC increased its stake in DiamondRock Hospitality by 66.7%, now owning 2.7 million shares valued at approximately $21.2 million.
• DiamondRock Hospitality reported better-than-expected earnings per share (EPS) of $0.35 for the last quarter, surpassing estimates of $0.33, although its revenue declined by 1.2% year-over-year.
• The company’s board recently announced a dividend of $0.08 per share, despite a high payout ratio of 123.08% and a dividend yield of 420.0%.

Cbre Investment Management Listed Real Assets LLC lifted its position in shares of DiamondRock Hospitality Company (NYSE:DRH - Free Report) by 66.7% in the first quarter, according to its most recent disclosure with the SEC. The institutional investor owned 2,748,875 shares of the real estate investment trust's stock after buying an additional 1,100,070 shares during the quarter. Cbre Investment Management Listed Real Assets LLC owned about 1.33% of DiamondRock Hospitality worth $21,221,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently modified their holdings of the company. Martingale Asset Management L P lifted its holdings in shares of DiamondRock Hospitality by 151.1% during the first quarter. Martingale Asset Management L P now owns 216,810 shares of the real estate investment trust's stock worth $1,674,000 after buying an additional 130,451 shares in the last quarter. Hsbc Holdings PLC raised its stake in DiamondRock Hospitality by 121.5% in the first quarter. Hsbc Holdings PLC now owns 402,720 shares of the real estate investment trust's stock valued at $3,104,000 after purchasing an additional 220,918 shares in the last quarter. Northern Trust Corp raised its stake in DiamondRock Hospitality by 0.8% in the first quarter. Northern Trust Corp now owns 3,278,297 shares of the real estate investment trust's stock valued at $25,308,000 after purchasing an additional 27,319 shares in the last quarter. American Century Companies Inc. raised its stake in DiamondRock Hospitality by 150.1% in the first quarter. American Century Companies Inc. now owns 132,649 shares of the real estate investment trust's stock valued at $1,024,000 after purchasing an additional 79,620 shares in the last quarter. Finally, Aberdeen Group plc raised its stake in DiamondRock Hospitality by 9.2% in the first quarter. Aberdeen Group plc now owns 75,441 shares of the real estate investment trust's stock valued at $582,000 after purchasing an additional 6,370 shares in the last quarter.

Analysts Set New Price Targets

A number of research firms recently commented on DRH. Stifel Nicolaus boosted their price target on DiamondRock Hospitality from $8.00 to $8.25 and gave the company a "hold" rating in a research note on Friday, May 2nd. Truist Financial dropped their price target on DiamondRock Hospitality from $10.00 to $9.00 and set a "hold" rating for the company in a research note on Friday, May 30th. Bank of America raised DiamondRock Hospitality from an "underperform" rating to a "buy" rating and set a $9.50 target price for the company in a research note on Wednesday, April 30th. Finally, Wells Fargo & Company boosted their target price on DiamondRock Hospitality from $8.25 to $9.00 and gave the stock an "equal weight" rating in a research note on Wednesday. One investment analyst has rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, DiamondRock Hospitality has a consensus rating of "Hold" and an average target price of $8.63.

DiamondRock Hospitality Trading Down 0.8%

Shares of NYSE:DRH traded down $0.07 during midday trading on Thursday, hitting $8.53. 670,454 shares of the stock were exchanged, compared to its average volume of 2,643,767. The stock has a market capitalization of $1.75 billion, a price-to-earnings ratio of 32.79 and a beta of 1.41. 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 business's 50-day moving average price is $7.93 and its 200 day moving average price is $7.78. DiamondRock Hospitality Company has a 12 month low of $6.18 and a 12 month high of $10.00.

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

DiamondRock Hospitality Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 14th. Investors of record on Tuesday, September 30th will be issued a $0.08 dividend. The ex-dividend date is Tuesday, September 30th. This represents a $0.32 annualized dividend and a yield of 3.8%. DiamondRock Hospitality's dividend payout ratio is presently 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.