Mitsubishi UFJ Asset Management Co. Ltd. Invests $2.15 Million in DiamondRock Hospitality Company $DRH

Key Points

• Mitsubishi UFJ Asset Management acquired 176,765 DiamondRock Hospitality shares worth approximately $2.15 million, representing about 0.09% of the REIT. Several other institutional investors also increased their positions.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $12.32. Shares recently opened at $12.82, near the analysts’ target range.
• DiamondRock exceeded quarterly earnings expectations, reporting $0.44 EPS versus the $0.22 consensus and $318.29 million in revenue. The company also raised its quarterly dividend from $0.09 to $0.11 per share, implying a 3.4% annualized yield.

Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in DiamondRock Hospitality Company (NYSE:DRH - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund acquired 176,765 shares of the real estate investment trust's stock, valued at approximately $2,153,000. Mitsubishi UFJ Asset Management Co. Ltd. owned about 0.09% of DiamondRock Hospitality as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also recently made changes to their positions in DRH. Louisiana State Employees Retirement System purchased a new position in shares of DiamondRock Hospitality in the first quarter valued at about $846,000. UBS Group AG boosted its holdings in shares of DiamondRock Hospitality by 49.9% during the fourth quarter. UBS Group AG now owns 2,627,787 shares of the real estate investment trust's stock worth $23,545,000 after purchasing an additional 874,536 shares during the period. Bank of America Corp DE boosted its holdings in shares of DiamondRock Hospitality by 7.2% during the first quarter. Bank of America Corp DE now owns 8,987,338 shares of the real estate investment trust's stock worth $84,211,000 after purchasing an additional 606,962 shares during the period. SG Americas Securities LLC grew its stake in shares of DiamondRock Hospitality by 106.1% in the first quarter. SG Americas Securities LLC now owns 4,172,671 shares of the real estate investment trust's stock worth $39,098,000 after purchasing an additional 2,147,881 shares during the last quarter. Finally, Principal Financial Group Inc. grew its stake in shares of DiamondRock Hospitality by 37.2% in the first quarter. Principal Financial Group Inc. now owns 1,334,731 shares of the real estate investment trust's stock worth $12,506,000 after purchasing an additional 361,674 shares during the last quarter.

Wall Street Analysts Forecast Growth

DRH has been the subject of a number of recent analyst reports. Barclays upped their price target on DiamondRock Hospitality from $10.00 to $12.00 and gave the company an "equal weight" rating in a research report on Monday, June 1st. LADENBURG THALM/SH SH boosted their target price on DiamondRock Hospitality from $13.00 to $14.00 and gave the company a "buy" rating in a research note on Thursday, June 18th. Stifel Nicolaus upped their target price on DiamondRock Hospitality from $12.50 to $13.25 and gave the company a "hold" rating in a report on Friday, July 31st. Truist Financial raised their price target on DiamondRock Hospitality from $11.00 to $12.00 and gave the stock a "buy" rating in a research note on Tuesday, May 26th. Finally, Citigroup lifted their price target on shares of DiamondRock Hospitality from $11.00 to $13.00 and gave the company a "neutral" rating in a report on Wednesday, July 22nd. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, DiamondRock Hospitality presently has a consensus rating of "Moderate Buy" and a consensus target price of $12.32.

DiamondRock Hospitality Stock Performance

Shares of DRH stock opened at $12.82 on Friday. The company's fifty day moving average price is $12.43 and its 200-day moving average price is $10.96. The stock has a market cap of $2.62 billion, a PE ratio of 51.28, a price-to-earnings-growth ratio of 4.50 and a beta of 0.98. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 0.70. 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 issued its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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%. DiamondRock Hospitality's revenue was up 4.1% on a year-over-year basis. During the same period last year, the company posted $0.35 EPS. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. On average, equities analysts expect that DiamondRock Hospitality Company will post 0.96 EPS for the current fiscal year.

DiamondRock Hospitality Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders 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 dividend on an annualized basis and a yield of 3.4%. DiamondRock Hospitality's dividend payout ratio (DPR) is presently 60.27%.

Insider Buying and Selling

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

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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