Jupiter Topco LLC Takes Position in DiamondRock Hospitality Company $DRH

Key Points

• Jupiter Topco LLC acquired 1.04 million shares of DiamondRock Hospitality valued at approximately $12.7 million, representing a 0.51% stake. Several other institutional investors also increased or initiated positions.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $12.53; recent targets ranged from $11.00 to $14.00.
• DiamondRock beat quarterly earnings expectations, reporting $0.44 in EPS versus the $0.22 estimate and $318.3 million in revenue. The REIT also raised its quarterly dividend from $0.09 to $0.11 per share, implying a 3.5% annualized yield.

Jupiter Topco LLC acquired a new stake in DiamondRock Hospitality Company (NYSE:DRH - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund acquired 1,043,673 shares of the real estate investment trust's stock, valued at approximately $12,711,000. Jupiter Topco LLC owned 0.51% of DiamondRock Hospitality at the end of the most recent quarter.

Several other hedge funds have also recently bought and sold shares of the company. Allworth Financial LP grew its position in DiamondRock Hospitality by 146.0% in the 4th quarter. Allworth Financial LP now owns 2,859 shares of the real estate investment trust's stock valued at $26,000 after acquiring an additional 1,697 shares in the last quarter. EverSource Wealth Advisors LLC boosted its stake in shares of DiamondRock Hospitality by 77.3% in the fourth quarter. EverSource Wealth Advisors LLC now owns 3,436 shares of the real estate investment trust's stock valued at $31,000 after purchasing an additional 1,498 shares during the period. Danske Bank A S purchased a new position in shares of DiamondRock Hospitality in the third quarter valued at approximately $33,000. Global Retirement Partners LLC grew its holdings in shares of DiamondRock Hospitality by 12,114.7% in the fourth quarter. Global Retirement Partners LLC now owns 4,153 shares of the real estate investment trust's stock valued at $37,000 after purchasing an additional 4,119 shares in the last quarter. Finally, State of Wyoming acquired a new position in shares of DiamondRock Hospitality in the second quarter valued at approximately $58,000.

Analysts Set New Price Targets

DRH has been the subject of several research reports. Barclays boosted their price target on shares of DiamondRock Hospitality from $12.00 to $14.00 and gave the stock an "equal weight" rating in a research note on Thursday. Citigroup lifted their target price on DiamondRock Hospitality from $11.00 to $13.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. Morgan Stanley boosted their target price on DiamondRock Hospitality from $10.00 to $11.00 and gave the stock an "equal weight" rating in a research note on Tuesday, August 18th. Zacks Research upgraded DiamondRock Hospitality from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 19th. Finally, Stifel Nicolaus increased their price target on DiamondRock Hospitality from $12.50 to $13.25 and gave the company a "hold" rating in a research report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $12.53.

DiamondRock Hospitality Price Performance

DiamondRock Hospitality stock opened at $12.70 on Friday. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 0.70. The company has a fifty day simple moving average of $12.49 and a 200-day simple moving average of $11.08. The stock has a market cap of $2.60 billion, a P/E ratio of 50.80, a price-to-earnings-growth ratio of 4.50 and a beta of 0.98. DiamondRock Hospitality Company has a 12-month low of $7.47 and a 12-month high of $13.79.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share for the quarter, beating analysts' consensus estimates of $0.22 by $0.22. The company had revenue of $318.29 million for the quarter, compared to analysts' expectations of $314.98 million. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.DiamondRock Hospitality's quarterly revenue was up 4.1% on a year-over-year basis. During the same period last year, the firm earned $0.35 earnings per share. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. Equities analysts expect that DiamondRock Hospitality Company will post 0.96 EPS for the current fiscal year.

DiamondRock Hospitality Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 30th will be paid a dividend of $0.11 per share. The ex-dividend date is Wednesday, September 30th. This is a positive change from DiamondRock Hospitality's previous quarterly dividend of $0.09. This represents a $0.44 annualized dividend and a yield of 3.5%. DiamondRock Hospitality's dividend payout ratio (DPR) is presently 60.27%.

Insider Transactions at DiamondRock Hospitality

In other DiamondRock Hospitality news, Director Kathleen Merrill sold 20,000 shares of the firm's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $11.88, for a total transaction of $237,600.00. Following the sale, the director owned 84,335 shares of the company's stock, valued at approximately $1,001,899.80. This trade represents a 19.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.90% of the stock is owned by company insiders.

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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