Wellington Management Group LLP Sells 66,868 Shares of DiamondRock Hospitality Company $DRH

Key Points

• Wellington Management Group LLP has reduced its stake in DiamondRock Hospitality Company (NYSE:DRH) by 1.4%, holding 4,858,837 shares valued at approximately $37.5 million after selling 66,868 shares.
• DiamondRock Hospitality's latest quarterly earnings showed $0.35 EPS, beating the consensus estimate of $0.33, though revenue was down 1.2% year-over-year.
• The company recently declared a dividend of $0.08 per share with a high payout ratio of 123.08%, indicating potential strain on dividend sustainability.

Wellington Management Group LLP decreased its stake in shares of DiamondRock Hospitality Company (NYSE:DRH - Free Report) by 1.4% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 4,858,837 shares of the real estate investment trust's stock after selling 66,868 shares during the period. Wellington Management Group LLP owned 2.36% of DiamondRock Hospitality worth $37,510,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also added to or reduced their stakes in DRH. Versant Capital Management Inc lifted its position in DiamondRock Hospitality by 156.3% during the 1st quarter. Versant Capital Management Inc now owns 3,699 shares of the real estate investment trust's stock worth $29,000 after buying an additional 2,256 shares in the last quarter. GF Fund Management CO. LTD. bought a new stake in DiamondRock Hospitality during the 4th quarter worth about $34,000. State of Wyoming bought a new stake in DiamondRock Hospitality during the 4th quarter worth about $54,000. Caxton Associates LP bought a new stake in DiamondRock Hospitality during the 4th quarter worth about $92,000. Finally, Harbor Capital Advisors Inc. raised its holdings in DiamondRock Hospitality by 26.4% during the 1st 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 during the last quarter.

DiamondRock Hospitality Trading Down 0.2%

Shares of DRH stock traded down $0.02 on Friday, reaching $8.57. The company had a trading volume of 1,782,247 shares, compared to its average volume of 2,707,325. The company has a current ratio of 1.30, a quick ratio of 1.30 and a debt-to-equity ratio of 0.64. The stock has a market cap of $1.76 billion, a PE ratio of 32.94 and a beta of 1.41. The company has a 50-day moving average of $7.97 and a 200-day moving average of $7.77. DiamondRock Hospitality Company has a 12 month low of $6.18 and a 12 month high of $10.00.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The real estate investment trust reported $0.35 EPS for the quarter, beating analysts' consensus estimates of $0.33 by $0.02. DiamondRock Hospitality had a return on equity of 4.23% and a net margin of 6.04%.The company had revenue of $305.70 million during the quarter, compared to analysts' expectations of $303.70 million. During the same period in the prior year, the business posted $0.34 EPS. DiamondRock Hospitality'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, equities analysts forecast that DiamondRock Hospitality Company will post 0.96 earnings per share for the current year.

DiamondRock Hospitality Announces Dividend

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

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. Truist Financial dropped their price objective on DiamondRock Hospitality from $10.00 to $9.00 and set a "hold" rating for the company in a report on Friday, May 30th. Wells Fargo & Company boosted their price objective on DiamondRock Hospitality from $8.25 to $9.00 and gave the stock an "equal weight" rating in a report on Wednesday. Finally, Stifel Nicolaus boosted their price objective on DiamondRock Hospitality from $8.00 to $8.25 and gave the stock a "hold" rating in a report on Friday, May 2nd. One equities research analyst has rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, DiamondRock Hospitality presently has an average rating of "Hold" and a consensus price target of $8.63.

About DiamondRock Hospitality

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.