DiamondRock Hospitality (NYSE:DRH) Shares Cross Above 200 Day Moving Average - What's Next?

Key Points

• DiamondRock Hospitality shares crossed above their 200-day moving average, reaching $12.70 before closing at $12.64, compared with a 200-day average of $11.43.
• Analysts have raised price targets, with the stock carrying a consensus “Moderate Buy” rating and an average target of $12.82.
• The REIT exceeded quarterly earnings expectations and increased its quarterly dividend from $0.09 to $0.11 per share, representing an annualized yield of about 3.5%.

Shares of DiamondRock Hospitality Company (NYSE:DRH - Get Free Report) crossed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $11.43 and traded as high as $12.70. DiamondRock Hospitality shares last traded at $12.64, with a volume of 2,212,727 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on DRH shares. Wells Fargo & Company lifted their target price on shares of DiamondRock Hospitality from $12.00 to $13.00 and gave the company an "equal weight" rating in a research note on Thursday, July 23rd. Bank of America increased their price target on DiamondRock Hospitality from $12.50 to $13.00 and gave the stock a "buy" rating in a research note on Monday, July 20th. Morgan Stanley raised their price target on DiamondRock Hospitality from $10.00 to $11.00 and gave the company an "equal weight" rating in a report on Tuesday, August 18th. Barclays boosted their price objective 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, LADENBURG THALM/SH SH upped their price objective on DiamondRock Hospitality from $13.00 to $14.00 and gave the stock a "buy" rating in a research note on Thursday, June 18th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, DiamondRock Hospitality presently has a consensus rating of "Moderate Buy" and a consensus target price of $12.82.

DiamondRock Hospitality Trading Up 1.2%

The stock has a market cap of $2.59 billion, a P/E ratio of 50.56, a price-to-earnings-growth ratio of 4.50 and a beta of 0.97. The stock's 50-day moving average is $12.53 and its two-hundred day moving average is $11.43. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.64 and a quick ratio of 1.64.

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

DiamondRock Hospitality Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 30th will be paid a dividend of $0.11 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This is a boost from DiamondRock Hospitality's previous quarterly dividend of $0.09. This represents a $0.44 dividend on an annualized basis and a yield of 3.5%. DiamondRock Hospitality's dividend payout ratio is currently 60.27%.

Institutional Trading of DiamondRock Hospitality

A number of large investors have recently added to or reduced their stakes in the company. QRG Capital Management Inc. boosted its position in shares of DiamondRock Hospitality by 14.3% during the 2nd quarter. QRG Capital Management Inc. now owns 153,128 shares of the real estate investment trust's stock valued at $1,865,000 after acquiring an additional 19,182 shares during the last quarter. Sequoia Financial Advisors LLC raised its stake in DiamondRock Hospitality by 38.3% during the second quarter. Sequoia Financial Advisors LLC now owns 22,772 shares of the real estate investment trust's stock valued at $277,000 after purchasing an additional 6,302 shares in the last quarter. WINTON GROUP Ltd lifted its position in DiamondRock Hospitality by 2,699.7% during the second quarter. WINTON GROUP Ltd now owns 425,556 shares of the real estate investment trust's stock valued at $5,183,000 after purchasing an additional 410,356 shares during the last quarter. Engineers Gate Manager LP grew its stake in shares of DiamondRock Hospitality by 123.5% in the 2nd quarter. Engineers Gate Manager LP now owns 175,670 shares of the real estate investment trust's stock worth $2,140,000 after buying an additional 97,070 shares in the last quarter. Finally, Squarepoint Ops LLC bought a new stake in shares of DiamondRock Hospitality in the 2nd quarter worth about $846,000.

About DiamondRock Hospitality

DiamondRock Hospitality Company NYSE: DRH is a self-advised real estate investment trust that owns a portfolio of hotels and resorts in the United States. The company focuses on lodging properties in locations that appeal to business and leisure travelers, including gateway cities, destination resorts and other high-demand markets.

DiamondRock's properties operate under a combination of nationally recognized hotel brands and independent or company-developed concepts. Its portfolio includes full-service hotels, lifestyle properties and resort accommodations, with services such as guest rooms, restaurants, meeting and event facilities, recreational amenities and other hospitality offerings.

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

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