Pzena Investment Management LLC Cuts Stock Holdings in DiamondRock Hospitality Company $DRH

Key Points

• Pzena Investment Management cut its stake in DiamondRock Hospitality by 38.1% in the fourth quarter, selling 3.27 million shares and leaving it with 5.32 million shares worth about $47.6 million.
• DiamondRock Hospitality reported better-than-expected quarterly results, posting EPS of $0.27 versus estimates of $0.24 and revenue of $274.53 million, while also guiding FY 2026 EPS at 1.09–1.16.
• The company declared a quarterly dividend of $0.09 per share, payable July 14, for an annualized yield of about 3.3%; meanwhile, analysts currently rate the stock a consensus Hold with an average price target of $10.87.

Pzena Investment Management LLC lowered its stake in shares of DiamondRock Hospitality Company (NYSE:DRH - Free Report) by 38.1% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 5,316,555 shares of the real estate investment trust's stock after selling 3,267,480 shares during the period. Pzena Investment Management LLC owned approximately 2.61% of DiamondRock Hospitality worth $47,636,000 at the end of the most recent reporting period.

Other large investors also recently bought and sold shares of the company. Allworth Financial LP increased its position in shares of DiamondRock Hospitality by 146.0% in the fourth quarter. Allworth Financial LP now owns 2,859 shares of the real estate investment trust's stock worth $26,000 after acquiring an additional 1,697 shares in the last quarter. First Horizon Corp increased its position in shares of DiamondRock Hospitality by 54.9% in the fourth quarter. First Horizon Corp now owns 3,214 shares of the real estate investment trust's stock worth $29,000 after acquiring an additional 1,139 shares in the last quarter. Global Retirement Partners LLC increased its position 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 worth $37,000 after acquiring an additional 4,119 shares in the last quarter. Danske Bank A S acquired a new stake in shares of DiamondRock Hospitality in the third quarter worth $33,000. Finally, Mirae Asset Global Investments Co. Ltd. increased its position in shares of DiamondRock Hospitality by 32.5% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,990 shares of the real estate investment trust's stock worth $54,000 after acquiring an additional 1,470 shares in the last quarter.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on DRH shares. Citigroup increased their price objective on shares of DiamondRock Hospitality from $9.50 to $11.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 6th. Stifel Nicolaus increased their price objective on shares of DiamondRock Hospitality from $11.00 to $11.25 and gave the stock a "hold" rating in a research report on Monday, May 11th. Wells Fargo & Company increased their price objective on shares of DiamondRock Hospitality from $10.00 to $11.00 and gave the stock an "equal weight" rating in a research report on Wednesday, April 22nd. Morgan Stanley raised their price target on shares of DiamondRock Hospitality from $9.50 to $9.60 and gave the company an "equal weight" rating in a report on Tuesday, May 12th. Finally, LADENBURG THALM/SH SH started coverage on shares of DiamondRock Hospitality in a report on Thursday, March 26th. They set a "buy" rating and a $12.00 price target for the company. Three research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $10.87.

DiamondRock Hospitality Price Performance

DRH opened at $10.78 on Friday. The company has a fifty day simple moving average of $10.01 and a 200 day simple moving average of $9.53. The firm has a market cap of $2.20 billion, a price-to-earnings ratio of 43.12, a PEG ratio of 4.50 and a beta of 0.99. DiamondRock Hospitality Company has a twelve month low of $7.31 and a twelve month high of $10.90. 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 (NYSE:DRH - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The real estate investment trust reported $0.27 earnings per share for the quarter, beating analysts' consensus estimates of $0.24 by $0.03. The business had revenue of $274.53 million during the quarter, compared to analyst estimates of $273.18 million. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The business's revenue was down 1.6% on a year-over-year basis. During the same period last year, the business earned $0.24 EPS. DiamondRock Hospitality has set its FY 2026 guidance at 1.090-1.160 EPS. Equities research analysts expect that DiamondRock Hospitality Company will post 0.96 EPS for the current fiscal year.

DiamondRock Hospitality Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 14th. Shareholders of record on Tuesday, June 30th will be issued a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend is Tuesday, June 30th. DiamondRock Hospitality's dividend payout ratio (DPR) is currently 76.60%.

Insider Buying and Selling at DiamondRock Hospitality

In other DiamondRock Hospitality news, Director Michael A. Hartmeier sold 20,000 shares of the firm's stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $10.46, for a total transaction of $209,200.00. Following the completion of the transaction, the director directly owned 95,354 shares of the company's stock, valued at $997,402.84. This trade represents a 17.34% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Steve Spierto sold 4,000 shares of the firm's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $9.93, for a total transaction of $39,720.00. Following the transaction, the chief accounting officer directly owned 77,977 shares of the company's stock, valued at approximately $774,311.61. This represents a 4.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.90% of the stock is owned by company insiders.

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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