DiamondRock Hospitality (NYSE:DRH) Share Price Breaks Above 200-Day Moving Average - Time to Sell?

Key Points

• DiamondRock Hospitality shares broke above their 200-day moving average, reaching $13.55 and last trading at $13.46, compared with a 200-day average of $11.78.
• Analysts remain broadly cautious: four rate the stock a Buy and seven a Hold, with a consensus target price of $12.93—below its recent trading level.
• The company exceeded quarterly earnings and revenue expectations and raised its quarterly dividend to $0.11 per share, implying a 3.3% annualized yield.

DiamondRock Hospitality Company (NYSE:DRH - Get Free Report) passed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $11.78 and traded as high as $13.55. DiamondRock Hospitality shares last traded at $13.46, with a volume of 2,913,768 shares.

Wall Street Analyst Weigh In

A number of research firms have weighed in on DRH. Morgan Stanley lifted their target price on DiamondRock Hospitality from $11.00 to $12.00 and gave the company an "equal weight" rating in a report on Monday, October 12th. Barclays upped their price target 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. Citigroup increased their price target on shares of DiamondRock Hospitality from $11.00 to $13.00 and gave the stock a "neutral" rating in a report on Wednesday, July 22nd. Wells Fargo & Company raised their price objective on shares of DiamondRock Hospitality from $12.00 to $13.00 and gave the company an "equal weight" rating in a research report on Thursday, July 23rd. Finally, Truist Financial raised their price objective on shares of DiamondRock Hospitality from $12.00 to $15.00 and gave the company a "buy" rating in a research report on Thursday, September 10th. 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 MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $12.93.

DiamondRock Hospitality Price Performance

The business's 50-day moving average price is $12.48 and its 200 day moving average price is $11.78. The stock has a market capitalization of $2.75 billion, a PE ratio of 53.84, a price-to-earnings-growth ratio of 4.50 and a beta of 1.01. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.64 and a current ratio of 1.64.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.22. The firm had revenue of $318.29 million for the quarter, compared to analysts' expectations of $314.98 million. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The business's quarterly revenue was up 4.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.35 earnings per share. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. Research analysts forecast that DiamondRock Hospitality Company will post 0.96 earnings per share for the current year.

DiamondRock Hospitality Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 30th were given a dividend of $0.11 per share. This is a boost from DiamondRock Hospitality's previous quarterly dividend of $0.09. The ex-dividend date was Wednesday, September 30th. This represents a $0.44 dividend on an annualized basis and a dividend yield of 3.3%. DiamondRock Hospitality's dividend payout ratio is 60.27%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of DRH. BlackRock Inc. purchased a new position in shares of DiamondRock Hospitality during the 2nd quarter valued at about $475,282,000. Bank of America Corp DE bought a new stake in DiamondRock Hospitality in the 2nd quarter worth approximately $129,710,000. SG Americas Securities LLC boosted its stake in DiamondRock Hospitality by 106.1% in the first quarter. SG Americas Securities LLC now owns 4,172,671 shares of the real estate investment trust's stock worth $39,098,000 after buying an additional 2,147,881 shares in the last quarter. Pzena Investment Management LLC purchased a new stake in DiamondRock Hospitality in the second quarter worth approximately $34,464,000. Finally, Dimensional Fund Advisors LP boosted its stake in DiamondRock Hospitality by 1.3% in the first quarter. Dimensional Fund Advisors LP now owns 2,972,171 shares of the real estate investment trust's stock worth $27,850,000 after buying an additional 37,482 shares in the last quarter.

DiamondRock Hospitality Company Profile

DiamondRock Hospitality Company NYSE: DRH is a self-advised real estate investment trust that owns a portfolio of upscale and luxury hotels and resorts in the United States. The company focuses on acquiring, owning and strategically managing lodging properties in major gateway markets, destination resorts and other high-demand locations.

DiamondRock's portfolio includes full-service hotels operating under nationally recognized brands such as Marriott, Hilton and Hyatt, as well as independent and boutique properties.

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