DiamondRock Hospitality (NYSE:DRH) Sets New 52-Week High - Time to Buy?

Key Points

• DiamondRock Hospitality hit a new 52-week high, trading as high as $14.72, up from its prior close of $14.36.
• Analysts’ overall rating is Hold (four Buy and seven Hold ratings), with an average price target of $13.03—below the stock’s recent trading price.
• The hotel REIT beat quarterly estimates with EPS of $0.16 and revenue of $297.6 million; revenue rose 4.3% year over year, though EPS fell from $0.29 a year earlier.

Shares of DiamondRock Hospitality Company (NYSE:DRH - Get Free Report) reached a new 52-week high during trading on Tuesday. The stock traded as high as $14.72 and last traded at $14.70, with a volume of 2,213,933 shares trading hands. The stock had previously closed at $14.36.

Analyst Ratings Changes

DRH has been the subject of several recent research reports. Bank of America raised their target price on shares of DiamondRock Hospitality from $12.50 to $13.00 and gave the stock a "buy" rating in a report on Monday, July 20th. Truist Financial boosted their target price on shares of DiamondRock Hospitality from $12.00 to $15.00 and gave the stock a "buy" rating in a research note on Thursday, September 10th. Zacks Research downgraded shares of DiamondRock Hospitality from a "strong-buy" rating to a "hold" rating in a report on Monday, September 28th. Barclays lifted their target price on DiamondRock Hospitality from $12.00 to $14.00 and gave the company an "equal weight" rating in a research report on Thursday, August 27th. Finally, Stifel Nicolaus lifted their price objective on shares of DiamondRock Hospitality from $12.50 to $13.25 and gave the company a "hold" rating in a report on Friday, July 31st. Four equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $13.03.

DiamondRock Hospitality Price Performance

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 company has a fifty day moving average price of $12.97 and a two-hundred day moving average price of $11.45. The firm has a market capitalization of $3.01 billion, a PE ratio of 58.80, a P/E/G ratio of 4.50 and a beta of 1.04.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last announced its earnings results on Tuesday, November 3rd. The real estate investment trust reported $0.16 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.15 by $0.01. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The business had revenue of $297.60 million for the quarter, compared to analyst estimates of $292.08 million. During the same period last year, the firm posted $0.29 earnings per share. The company's revenue for the quarter was up 4.3% compared to the same quarter last year. Sell-side analysts forecast that DiamondRock Hospitality Company will post 0.96 earnings per share for the current year.

Institutional Trading of DiamondRock Hospitality

Hedge funds have recently modified their holdings of the business. BlackRock Inc. purchased a new stake in shares of DiamondRock Hospitality during the 2nd quarter worth approximately $475,282,000. Bank of America Corp DE purchased a new stake in shares of DiamondRock Hospitality during the 2nd quarter worth about $129,710,000. Pzena Investment Management LLC purchased a new stake in DiamondRock Hospitality during the second quarter worth approximately $34,464,000. Dimensional Fund Advisors LP increased its holdings in DiamondRock Hospitality by 1.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,972,171 shares of the real estate investment trust's stock valued at $27,850,000 after purchasing an additional 37,482 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its stake in shares of DiamondRock Hospitality by 4.0% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,412,052 shares of the real estate investment trust's stock valued at $22,601,000 after buying an additional 91,672 shares in the last quarter.

About DiamondRock Hospitality

DiamondRock Hospitality Company is a self-advised real estate investment trust focused on owning upscale hotels and resorts in the United States. The company's properties serve both business and leisure travelers and are managed by third-party hotel operators. Its portfolio includes hotels in major urban and gateway markets as well as leisure destinations. Properties operate under a range of well-known hotel brands, including Marriott, Hilton and Hyatt, alongside independent brands. DiamondRock was founded in 2004 and became a publicly traded company in 2005.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.