Truist Financial Forecasts Strong Price Appreciation for DiamondRock Hospitality (NYSE:DRH) Stock

Key Points

• Truist Financial raised its price target on DiamondRock Hospitality to $12.00 from $11.00 and kept a buy rating, implying nearly 10% upside from the current share price.
• Analyst views remain mixed overall: the stock has 3 Buy ratings and 7 Hold ratings, with a consensus target price of $10.98.
• DiamondRock recently beat quarterly earnings estimates, reporting $0.27 EPS versus the expected $0.24, while revenue came in slightly above forecasts at $274.53 million.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) had its price objective lifted by investment analysts at Truist Financial from $11.00 to $12.00 in a report issued on Tuesday,Benzinga reports. The brokerage currently has a "buy" rating on the real estate investment trust's stock. Truist Financial's price objective points to a potential upside of 9.89% from the company's current price.

A number of other research firms have also commented on DRH. Morgan Stanley lifted their price objective on shares of DiamondRock Hospitality from $9.50 to $9.60 and gave the company an "equal weight" rating in a research note on Tuesday, May 12th. Wells Fargo & Company lifted their price objective on shares of DiamondRock Hospitality from $10.00 to $11.00 and gave the company an "equal weight" rating in a research note on Wednesday, April 22nd. Citigroup lifted their target price on shares of DiamondRock Hospitality from $9.50 to $11.00 and gave the company a "neutral" rating in a report on Wednesday, May 6th. Stifel Nicolaus lifted their target price on shares of DiamondRock Hospitality from $11.00 to $11.25 and gave the company a "hold" rating in a report on Monday, May 11th. Finally, LADENBURG THALM/SH SH started coverage on shares of DiamondRock Hospitality in a report on Thursday, March 26th. They issued a "buy" rating and a $12.00 target price on the stock. Three research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $10.98.

DiamondRock Hospitality Stock Performance

NYSE DRH traded up $0.21 during trading on Tuesday, reaching $10.92. The company's stock had a trading volume of 439,455 shares, compared to its average volume of 2,319,649. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.64 and a current ratio of 1.64. The firm has a market cap of $2.23 billion, a price-to-earnings ratio of 43.68, a P/E/G ratio of 4.50 and a beta of 0.99. DiamondRock Hospitality has a twelve month low of $7.39 and a twelve month high of $10.95. The business's fifty day moving average price is $10.05 and its 200-day moving average price is $9.57.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The real estate investment trust reported $0.27 EPS for the quarter, beating analysts' consensus estimates of $0.24 by $0.03. The company had revenue of $274.53 million for the quarter, compared to analyst estimates of $273.18 million. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. DiamondRock Hospitality's quarterly revenue was down 1.6% on a year-over-year basis. During the same period in the previous year, the business posted $0.24 earnings per share. DiamondRock Hospitality has set its FY 2026 guidance at 1.090-1.160 EPS. As a group, analysts anticipate that DiamondRock Hospitality will post 0.96 EPS for the current fiscal year.

Insider Activity

In other news, Director Michael A. Hartmeier sold 20,000 shares of DiamondRock Hospitality stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $10.46, for a total value of $209,200.00. Following the sale, the director owned 95,354 shares of the company's stock, valued at $997,402.84. The trade was a 17.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Steve Spierto sold 4,000 shares of DiamondRock Hospitality stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $9.93, for a total transaction of $39,720.00. Following the completion of the sale, the chief accounting officer directly owned 77,977 shares in the company, valued at approximately $774,311.61. The trade was a 4.88% decrease in their position. The SEC filing for this sale provides additional information. 0.90% of the stock is owned by insiders.

Institutional Trading of DiamondRock Hospitality

Institutional investors have recently added to or reduced their stakes in the stock. Hudson Bay Capital Management LP purchased a new stake in DiamondRock Hospitality during the third quarter worth about $9,098,000. Centersquare Investment Management LLC boosted its holdings in DiamondRock Hospitality by 6.0% during the third quarter. Centersquare Investment Management LLC now owns 7,536,975 shares of the real estate investment trust's stock worth $59,994,000 after buying an additional 427,467 shares in the last quarter. UBS Group AG boosted its holdings in DiamondRock Hospitality by 49.9% during the fourth quarter. UBS Group AG now owns 2,627,787 shares of the real estate investment trust's stock worth $23,545,000 after buying an additional 874,536 shares in the last quarter. SG Americas Securities LLC boosted its holdings in DiamondRock Hospitality by 881.7% during the fourth quarter. SG Americas Securities LLC now owns 2,024,790 shares of the real estate investment trust's stock worth $18,142,000 after buying an additional 1,818,527 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd purchased a new stake in DiamondRock Hospitality during the third quarter worth about $2,823,000.

DiamondRock Hospitality Company Profile

DiamondRock Hospitality Company is a real estate investment trust (REIT) that acquires, owns and manages a diversified portfolio of upscale, full-service hotels in urban gateway markets across the United States. Established in 2004 and headquartered in Bethesda, Maryland, the company focuses on investing in high-quality lodging properties that cater to both business and leisure travelers. Its assets are positioned in key metropolitan areas, enabling DiamondRock to benefit from strong demand drivers such as corporate travel, group conventions and resort leisure stays.

The company's portfolio includes full-service hotels offering a broad range of amenities, including guest rooms, on-site food and beverage outlets, meeting and event space, fitness centers and spa services.

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