Hsbc Holdings PLC Acquires 220,918 Shares of DiamondRock Hospitality Company $DRH

Key Points

• Hsbc Holdings PLC increased its stake in DiamondRock Hospitality by 121.5%, owning approximately 402,720 shares worth $3.1 million at the end of the first quarter.
• DiamondRock Hospitality reported $0.35 earnings per share for the latest quarter, beating estimates, but showed a 1.2% decline in quarterly revenue compared to the previous year.
• The company declared a dividend of $0.08 with a significant yield of 420.0%, but has a relatively high dividend payout ratio of 123.08%.

Hsbc Holdings PLC lifted its position in shares of DiamondRock Hospitality Company (NYSE:DRH - Free Report) by 121.5% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 402,720 shares of the real estate investment trust's stock after purchasing an additional 220,918 shares during the quarter. Hsbc Holdings PLC owned 0.20% of DiamondRock Hospitality worth $3,104,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Versant Capital Management Inc boosted its position in shares of DiamondRock Hospitality by 156.3% during 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 in the last quarter. GF Fund Management CO. LTD. bought a new position in shares of DiamondRock Hospitality during the fourth quarter worth $34,000. State of Wyoming bought a new position in shares of DiamondRock Hospitality during the fourth quarter worth $54,000. Caxton Associates LP bought a new position in shares of DiamondRock Hospitality during the fourth quarter worth $92,000. Finally, Harbor Capital Advisors Inc. boosted its position in shares of DiamondRock Hospitality by 26.4% during the first quarter. Harbor Capital Advisors Inc. now owns 11,941 shares of the real estate investment trust's stock worth $92,000 after purchasing an additional 2,492 shares in the last quarter.

DiamondRock Hospitality Stock Down 0.2%

Shares of NYSE:DRH traded down $0.02 during midday trading on Monday, hitting $8.57. The stock had a trading volume of 1,782,247 shares, compared to its average volume of 2,663,925. DiamondRock Hospitality Company has a 12 month low of $6.18 and a 12 month high of $10.00. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.64. The business's 50-day simple moving average is $7.98 and its 200-day simple moving average is $7.77. The company has a market cap of $1.76 billion, a P/E ratio of 32.94 and a beta of 1.39.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last released its earnings results on Thursday, August 7th. The real estate investment trust reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.02. DiamondRock Hospitality had a net margin of 6.04% and a return on equity of 4.23%. The business had revenue of $305.70 million during the quarter, compared to analysts' expectations of $303.70 million. During the same period last year, the business earned $0.34 earnings per share. The firm's 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 earnings per share for the current fiscal year.

DiamondRock Hospitality Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 14th. Investors of record on Tuesday, September 30th will be paid a $0.08 dividend. The ex-dividend date is Tuesday, September 30th. This represents a $0.32 annualized dividend and a yield of 3.7%. DiamondRock Hospitality's payout ratio is 123.08%.

Wall Street Analysts Forecast Growth

DRH has been the subject of several research reports. Truist Financial lowered 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. Wells Fargo & Company increased their price objective on shares of DiamondRock Hospitality from $8.25 to $9.00 and gave the stock an "equal weight" rating in a research report on Wednesday, August 27th. One investment analyst has rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, DiamondRock Hospitality presently has an average rating of "Hold" and a consensus price target of $8.63.

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.