Morgan Stanley Lowers DiamondRock Hospitality (NYSE:DRH) Price Target to $8.50

Key Points

• Morgan Stanley has reduced its price target for DiamondRock Hospitality from $9.00 to $8.50, maintaining an "equal weight" rating on the stock.
• DiamondRock Hospitality's stock price was at $7.87 during mid-day trading, with a potential upside of 8.07% based on the new target price.
• The company reported a quarterly revenue of $305.70 million, exceeding analyst estimates, despite a small year-over-year decrease of 1.2%.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) had its price objective cut by equities researchers at Morgan Stanley from $9.00 to $8.50 in a report issued on Wednesday,Benzinga reports. The brokerage currently has an "equal weight" rating on the real estate investment trust's stock. Morgan Stanley's target price would indicate a potential upside of 8.07% from the company's previous close.

DRH has been the topic of several other reports. Weiss Ratings reiterated a "hold (c)" rating on shares of DiamondRock Hospitality in a research report on Wednesday, October 8th. Wells Fargo & Company upgraded DiamondRock Hospitality to a "hold" rating in a research report on Friday, October 3rd. One equities research analyst has rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $8.88.

DiamondRock Hospitality Stock Up 0.7%

DiamondRock Hospitality stock traded up $0.06 during mid-day trading on Wednesday, reaching $7.87. The stock had a trading volume of 1,393,123 shares, compared to its average volume of 2,666,619. The company has a market capitalization of $1.61 billion, a price-to-earnings ratio of 30.25 and a beta of 1.38. The company has a 50-day moving average price of $8.12 and a two-hundred day moving average price of $7.77. DiamondRock Hospitality has a one year low of $6.18 and a one year high of $10.00. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.30 and a quick ratio of 1.30.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last posted its earnings results on Thursday, August 7th. The real estate investment trust reported $0.35 EPS for the quarter, topping 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 business had revenue of $305.70 million during the quarter, compared to analyst estimates of $303.70 million. During the same quarter last year, the company earned $0.34 EPS. The company's quarterly revenue was down 1.2% compared to the same quarter last year. DiamondRock Hospitality has set its FY 2025 guidance at 0.960-1.060 EPS. On average, analysts expect that DiamondRock Hospitality will post 0.96 EPS for the current fiscal year.

Institutional Trading of DiamondRock Hospitality

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Oppenheimer Asset Management Inc. purchased a new stake in shares of DiamondRock Hospitality during the 1st quarter valued at $103,000. Diversified Trust Co raised its stake in DiamondRock Hospitality by 8.3% in the 1st quarter. Diversified Trust Co now owns 36,033 shares of the real estate investment trust's stock worth $278,000 after acquiring an additional 2,748 shares during the last quarter. Illinois Municipal Retirement Fund raised its stake in DiamondRock Hospitality by 1.8% in the 1st quarter. Illinois Municipal Retirement Fund now owns 107,860 shares of the real estate investment trust's stock worth $833,000 after acquiring an additional 1,873 shares during the last quarter. Allspring Global Investments Holdings LLC grew its position in DiamondRock Hospitality by 54.6% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 91,486 shares of the real estate investment trust's stock worth $705,000 after purchasing an additional 32,298 shares during the period. Finally, Teacher Retirement System of Texas grew its position in DiamondRock Hospitality by 4.9% during the 1st quarter. Teacher Retirement System of Texas now owns 53,632 shares of the real estate investment trust's stock worth $414,000 after purchasing an additional 2,525 shares during the period.

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.

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