Pzena Investment Management LLC Sells 2,481,976 Shares of DiamondRock Hospitality Company $DRH

Key Points

• Pzena Investment Management cut its DiamondRock Hospitality stake by 46.7% in the first quarter, selling 2,481,976 shares and ending with 2,834,579 shares worth about $26.6 million.
• Analysts remain cautious on DRH overall: the stock’s consensus rating is Hold, with an average price target of $11.65, even as several firms recently raised their targets.
• DiamondRock Hospitality recently announced a quarterly dividend of $0.09 per share, equivalent to a 3.0% annualized yield, while insiders also reported selling shares in recent transactions.

Pzena Investment Management LLC reduced its position in shares of DiamondRock Hospitality Company (NYSE:DRH - Free Report) by 46.7% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,834,579 shares of the real estate investment trust's stock after selling 2,481,976 shares during the period. Pzena Investment Management LLC owned approximately 1.39% of DiamondRock Hospitality worth $26,560,000 at the end of the most recent reporting period.

A number of other large investors have also recently modified their holdings of the business. AQR Capital Management LLC increased its stake in shares of DiamondRock Hospitality by 223.2% in the 1st quarter. AQR Capital Management LLC now owns 65,376 shares of the real estate investment trust's stock valued at $505,000 after purchasing an additional 45,146 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of DiamondRock Hospitality by 5.1% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 123,672 shares of the real estate investment trust's stock worth $955,000 after buying an additional 5,971 shares during the last quarter. United Services Automobile Association acquired a new stake in DiamondRock Hospitality in the first quarter valued at about $91,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in DiamondRock Hospitality by 3.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,327,841 shares of the real estate investment trust's stock valued at $10,251,000 after buying an additional 48,558 shares in the last quarter. Finally, Creative Planning bought a new position in DiamondRock Hospitality in the second quarter valued at about $99,000.

Wall Street Analyst Weigh In

Several research analysts have commented on DRH shares. Morgan Stanley boosted their target price on DiamondRock Hospitality from $9.50 to $9.60 and gave the stock an "equal weight" rating in a research note on Tuesday, May 12th. Barclays lifted their price target on shares of DiamondRock Hospitality from $10.00 to $12.00 and gave the company an "equal weight" rating in a report on Monday, June 1st. Wells Fargo & Company upped their price objective on shares of DiamondRock Hospitality from $11.00 to $12.00 and gave the stock an "equal weight" rating in a research report on Monday, June 1st. Citigroup increased their price objective on shares of DiamondRock Hospitality from $9.50 to $11.00 and gave the company a "neutral" rating in a research note on Wednesday, May 6th. Finally, LADENBURG THALM/SH SH raised their target price on shares of DiamondRock Hospitality from $13.00 to $14.00 and gave the company a "buy" rating in a research report on Thursday, June 18th. Three analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $11.65.

Insider Buying and Selling

In other 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 owned 95,354 shares of the company's stock, valued at approximately $997,402.84. This trade represents a 17.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Kathleen Merrill sold 20,000 shares of DiamondRock Hospitality stock in a transaction on Friday, June 12th. The stock was sold at an average price of $11.88, for a total transaction of $237,600.00. Following the transaction, the director owned 84,335 shares in the company, valued at approximately $1,001,899.80. This trade represents a 19.17% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.90% of the company's stock.

DiamondRock Hospitality Price Performance

DiamondRock Hospitality stock opened at $12.08 on Friday. The stock has a 50-day moving average price of $11.22 and a two-hundred day moving average price of $10.14. DiamondRock Hospitality Company has a 12 month low of $7.45 and a 12 month high of $12.54. The company has a market capitalization of $2.47 billion, a PE ratio of 48.32, a P/E/G ratio of 4.50 and a beta of 1.00. 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 Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 14th. Investors of record on Tuesday, June 30th will be given a dividend of $0.09 per share. The ex-dividend date is Tuesday, June 30th. This represents a $0.36 annualized dividend and a yield of 3.0%. DiamondRock Hospitality's dividend payout ratio (DPR) is currently 76.60%.

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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