DiamondRock Hospitality (NYSE:DRH) Sets New 52-Week High - Still a Buy?

Key Points

• DiamondRock Hospitality shares hit a new 52-week high, trading around $14.62 after closing at $14.25, up approximately 2.1%.
• Analyst sentiment remains mixed: four analysts rate the stock a Buy and seven rate it a Hold, producing a consensus Hold rating and an average price target of $13.03—below the current share price.
• The REIT exceeded quarterly expectations, reporting $0.44 in earnings per share versus the $0.22 consensus estimate and $318.29 million in revenue, up 4.1% year over year.

DiamondRock Hospitality Company (NYSE:DRH - Get Free Report)'s share price reached a new 52-week high during trading on Monday. The company traded as high as $14.60 and last traded at $14.6210, with a volume of 100,229 shares traded. The stock had previously closed at $14.25.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. Bank of America upped their target price on shares of DiamondRock Hospitality from $12.50 to $13.00 and gave the company a "buy" rating in a report on Monday, July 20th. Zacks Research lowered DiamondRock Hospitality from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 28th. Barclays increased their price objective on shares of DiamondRock Hospitality from $12.00 to $14.00 and gave the stock an "equal weight" rating in a report on Thursday, August 27th. Wells Fargo & Company raised their target price on shares of DiamondRock Hospitality from $13.00 to $14.00 and gave the stock an "equal weight" rating in a research report on Monday, October 26th. Finally, Citigroup boosted their target price 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. Four equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to data from MarketBeat.com, DiamondRock Hospitality has a consensus rating of "Hold" and an average target price of $13.03.

DiamondRock Hospitality Trading Up 2.1%

The business's 50-day moving average is $12.78 and its two-hundred day moving average is $11.30. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 0.70. The stock has a market capitalization of $2.98 billion, a PE ratio of 58.14, a PEG ratio of 4.50 and a beta of 1.01.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The real estate investment trust reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.22 by $0.22. The company had revenue of $318.29 million for the quarter, compared to analysts' expectations of $314.98 million. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%. The firm's quarterly revenue was up 4.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.35 earnings per share. On average, analysts predict that DiamondRock Hospitality Company will post 0.96 earnings per share for the current year.

Institutional Trading of DiamondRock Hospitality

Hedge funds have recently made changes to their positions in the company. State of Wyoming grew its stake in DiamondRock Hospitality by 7.8% during the 3rd quarter. State of Wyoming now owns 61,405 shares of the real estate investment trust's stock valued at $759,000 after purchasing an additional 4,458 shares in the last quarter. Choreo LLC raised its stake in shares of DiamondRock Hospitality by 4.5% in the 3rd quarter. Choreo LLC now owns 31,073 shares of the real estate investment trust's stock valued at $384,000 after purchasing an additional 1,330 shares in the last quarter. Roman Butler Fullerton & Co. acquired a new position in DiamondRock Hospitality in the third quarter worth about $251,000. Fifth Third Wealth Advisors LLC grew its stake in DiamondRock Hospitality by 16.1% in the third quarter. Fifth Third Wealth Advisors LLC now owns 12,974 shares of the real estate investment trust's stock worth $160,000 after purchasing an additional 1,795 shares in the last quarter. Finally, Sterling Capital Management LLC lifted its holdings in DiamondRock Hospitality by 11.5% during the 3rd quarter. Sterling Capital Management LLC now owns 37,334 shares of the real estate investment trust's stock worth $461,000 after buying an additional 3,846 shares during the last quarter.

About DiamondRock Hospitality

DiamondRock Hospitality Company NYSE: DRH is a self-advised real estate investment trust that owns a portfolio of hotels and resort properties in the United States. The company focuses on lodging real estate in leisure destinations and gateway markets, with properties serving business travelers, vacationers, and group customers.

DiamondRock's portfolio includes hotels operated under nationally recognized brands as well as independent and boutique properties. Its business activities include acquiring, owning, leasing, and strategically managing hospitality real estate, while day-to-day hotel operations are generally carried out by third-party management companies and brand operators.

The company was formed in 2004 through a spin-off from Marriott International and is headquartered in Bethesda, Maryland.

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