Hsbc Holdings PLC Purchases 94,779 Shares of DiamondRock Hospitality Company $DRH

Key Points

• HSBC Holdings increased its DiamondRock Hospitality position by 15.7%, purchasing 94,779 shares to hold 696,687 shares worth approximately $8.49 million.
• DiamondRock reported quarterly EPS of $0.44, beating analysts’ $0.22 estimate, while revenue rose 4.1% year over year to $318.29 million.
• The REIT raised its quarterly dividend from $0.09 to $0.11 per share, equivalent to a 3.6% annualized yield; analysts maintain a “Moderate Buy” consensus with a $12.53 target price.

Hsbc Holdings PLC grew its position in shares of DiamondRock Hospitality Company (NYSE:DRH - Free Report) by 15.7% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 696,687 shares of the real estate investment trust's stock after buying an additional 94,779 shares during the quarter. Hsbc Holdings PLC owned approximately 0.34% of DiamondRock Hospitality worth $8,490,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors also recently modified their holdings of the company. BlackRock Inc. bought a new position in DiamondRock Hospitality in the 2nd quarter valued at $475,282,000. State Street Corp grew its holdings in shares of DiamondRock Hospitality by 0.8% during the second quarter. State Street Corp now owns 12,587,578 shares of the real estate investment trust's stock worth $97,400,000 after purchasing an additional 93,929 shares during the last quarter. Bank of America Corp DE acquired a new stake in shares of DiamondRock Hospitality in the second quarter valued at $129,710,000. Alyeska Investment Group L.P. raised its holdings in shares of DiamondRock Hospitality by 5.5% in the third quarter. Alyeska Investment Group L.P. now owns 9,152,343 shares of the real estate investment trust's stock valued at $72,853,000 after buying an additional 475,611 shares during the last quarter. Finally, Centersquare Investment Management LLC raised its holdings in shares of DiamondRock Hospitality by 3.2% in the fourth quarter. Centersquare Investment Management LLC now owns 7,780,988 shares of the real estate investment trust's stock valued at $69,718,000 after buying an additional 244,013 shares during the last quarter.

Insider Activity

In other news, Director Kathleen Merrill sold 20,000 shares of the company's stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $11.88, for a total value of $237,600.00. Following the completion of the sale, the director directly owned 84,335 shares of the company's stock, valued at $1,001,899.80. This represents a 19.17% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Insiders own 0.90% of the company's stock.

DiamondRock Hospitality Trading Up 0.8%

Shares of NYSE DRH opened at $12.07 on Thursday. DiamondRock Hospitality Company has a fifty-two week low of $7.47 and a fifty-two week high of $13.79. The firm has a market capitalization of $2.47 billion, a P/E ratio of 48.28, a P/E/G ratio of 4.50 and a beta of 0.97. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.64 and a quick ratio of 1.64. The company's 50 day simple moving average is $12.47 and its 200 day simple moving average is $11.21.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last issued its earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 EPS for the quarter, beating the consensus estimate of $0.22 by $0.22. The company had revenue of $318.29 million during the quarter, compared to analysts' expectations of $314.98 million. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The business's revenue for the quarter was up 4.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.35 EPS. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. On average, analysts predict that DiamondRock Hospitality Company will post 0.96 EPS for the current year.

DiamondRock Hospitality Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 30th will be given a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a dividend yield of 3.6%. The ex-dividend date is Wednesday, September 30th. This is an increase from DiamondRock Hospitality's previous quarterly dividend of $0.09. DiamondRock Hospitality's dividend payout ratio is presently 60.27%.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the stock. LADENBURG THALM/SH SH upped their target price on shares of DiamondRock Hospitality from $13.00 to $14.00 and gave the stock a "buy" rating in a research report on Thursday, June 18th. Citigroup boosted their price objective on shares of DiamondRock Hospitality from $11.00 to $13.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 22nd. Stifel Nicolaus increased their price objective on DiamondRock Hospitality from $12.50 to $13.25 and gave the company a "hold" rating in a research report on Friday, July 31st. Truist Financial lifted their target price on DiamondRock Hospitality from $11.00 to $12.00 and gave the company a "buy" rating in a research note on Tuesday, May 26th. Finally, Zacks Research upgraded DiamondRock Hospitality from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 19th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $12.53.

DiamondRock Hospitality Profile

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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