Zacks Research Upgrades DiamondRock Hospitality (NYSE:DRH) to Strong-Buy

Key Points

• Zacks Research upgraded DiamondRock Hospitality to “strong buy” from “hold.” Other analysts remain broadly positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $12.32.
• DRH shares opened at $12.77, up 0.4%, and have traded between $7.47 and $13.79 over the past year. The company recently reported quarterly EPS of $0.44, beating the $0.22 consensus estimate, while revenue rose 4.1% year over year to $318.29 million.
• Director Kathleen Merrill sold 20,000 shares for $237,600, reducing her position by 19.17%; corporate insiders retain a 0.90% stake. Several institutional investors, meanwhile, increased their holdings.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) was upgraded by Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Wednesday,Zacks.com reports.

Other equities analysts have also recently issued reports about the company. Bank of America boosted their target price on DiamondRock Hospitality from $12.50 to $13.00 and gave the company a "buy" rating in a research note on Monday, July 20th. LADENBURG THALM/SH SH lifted their target price on shares of DiamondRock Hospitality from $13.00 to $14.00 and gave the company a "buy" rating in a report on Thursday, June 18th. Morgan Stanley increased 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 report on Tuesday. Barclays lifted their price target on shares of DiamondRock Hospitality from $10.00 to $12.00 and gave the stock an "equal weight" rating in a research note on Monday, June 1st. Finally, Wells Fargo & Company lifted their target price on DiamondRock Hospitality from $12.00 to $13.00 and gave the company an "equal weight" rating in a research report on Thursday, July 23rd. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and seven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $12.32.

DiamondRock Hospitality Trading Up 0.4%

Shares of DRH opened at $12.77 on Wednesday. DiamondRock Hospitality has a fifty-two week low of $7.47 and a fifty-two week high of $13.79. The firm has a market cap of $2.61 billion, a price-to-earnings ratio of 51.08, a PEG ratio of 4.50 and a beta of 0.98. The firm has a 50 day moving average price of $12.41 and a 200-day moving average price of $10.95. 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 posted 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. 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 during the quarter, compared to the consensus estimate of $314.98 million. During the same period in the previous year, the firm posted $0.35 earnings per share. The firm's revenue for the quarter was up 4.1% on a year-over-year basis. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. As a group, equities research analysts forecast that DiamondRock Hospitality will post 0.96 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Kathleen Merrill sold 20,000 shares of DiamondRock Hospitality stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $11.88, for a total transaction of $237,600.00. Following the completion of the transaction, the director directly owned 84,335 shares of the company's stock, valued at $1,001,899.80. The trade was a 19.17% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.90% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Allworth Financial LP increased its holdings in shares of DiamondRock Hospitality by 146.0% during the 4th quarter. Allworth Financial LP now owns 2,859 shares of the real estate investment trust's stock worth $26,000 after buying an additional 1,697 shares during the last quarter. First Horizon Corp grew its position in DiamondRock Hospitality by 54.9% in the 4th quarter. First Horizon Corp now owns 3,214 shares of the real estate investment trust's stock valued at $29,000 after acquiring an additional 1,139 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in DiamondRock Hospitality by 77.3% during the 4th quarter. EverSource Wealth Advisors LLC now owns 3,436 shares of the real estate investment trust's stock worth $31,000 after buying an additional 1,498 shares during the period. Danske Bank A S purchased a new position in DiamondRock Hospitality in the third quarter valued at $33,000. Finally, Global Retirement Partners LLC grew its position in shares of DiamondRock Hospitality by 12,114.7% during the fourth quarter. Global Retirement Partners LLC now owns 4,153 shares of the real estate investment trust's stock worth $37,000 after buying an additional 4,119 shares in the last quarter.

About DiamondRock Hospitality

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.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source