DiamondRock Hospitality (NYSE:DRH) Hits New 1-Year High – What’s Next?

Shares of DiamondRock Hospitality Company (NYSE:DRH) hit a new 52-week high during trading on Wednesday . The company traded as high as $9.56 and last traded at $9.6470, with a volume of 2473819 shares trading hands. The stock had previously closed at $9.18.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on DRH shares. Morgan Stanley reduced their price objective on shares of DiamondRock Hospitality from $9.00 to $8.50 and set an “equal weight” rating on the stock in a research note on Wednesday, October 22nd. Evercore ISI lifted their price target on shares of DiamondRock Hospitality from $9.00 to $10.00 and gave the stock an “in-line” rating in a research report on Thursday, November 20th. Deutsche Bank Aktiengesellschaft raised shares of DiamondRock Hospitality from a “hold” rating to a “buy” rating and boosted their price target for the company from $10.00 to $12.00 in a report on Tuesday, January 13th. Truist Financial raised DiamondRock Hospitality from a “hold” rating to a “buy” rating and raised their price objective for the stock from $10.00 to $11.00 in a research note on Friday, January 9th. Finally, Barclays started coverage on DiamondRock Hospitality in a research note on Tuesday, January 6th. They issued an “equal weight” rating and a $10.00 target price for the company. Three investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $9.91.

DiamondRock Hospitality Stock Performance

The stock has a fifty day simple moving average of $9.10 and a 200-day simple moving average of $8.45. The stock has a market cap of $1.93 billion, a P/E ratio of 37.88, a PEG ratio of 4.50 and a beta of 1.03. 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) last posted its quarterly earnings data on Thursday, November 6th. The real estate investment trust reported $0.29 earnings per share for the quarter, topping the consensus estimate of $0.25 by $0.04. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The company had revenue of $285.38 million during the quarter, compared to analysts’ expectations of $277.45 million. During the same period in the prior year, the firm earned $0.27 earnings per share. DiamondRock Hospitality’s revenue for the quarter was up .1% compared to the same quarter last year. DiamondRock Hospitality has set its FY 2025 guidance at 1.020-1.06 EPS. On average, equities analysts expect that DiamondRock Hospitality Company will post 0.96 earnings per share for the current year.

DiamondRock Hospitality Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, January 14th. Stockholders of record on Wednesday, December 31st were given a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date of this dividend was Wednesday, December 31st. DiamondRock Hospitality’s payout ratio is currently 128.00%.

Institutional Investors Weigh In On DiamondRock Hospitality

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. State Street Corp boosted its stake in shares of DiamondRock Hospitality by 0.8% during the 2nd quarter. State Street Corp now owns 12,587,578 shares of the real estate investment trust’s stock worth $97,400,000 after buying an additional 93,929 shares during the last quarter. Bank of America Corp DE raised its holdings in DiamondRock Hospitality by 17.5% during the second quarter. Bank of America Corp DE now owns 9,231,991 shares of the real estate investment trust’s stock worth $70,717,000 after acquiring an additional 1,377,897 shares in the last quarter. Alyeska Investment Group L.P. boosted its position in DiamondRock Hospitality by 5.5% during the third quarter. Alyeska Investment Group L.P. now owns 9,152,343 shares of the real estate investment trust’s stock valued at $72,853,000 after purchasing an additional 475,611 shares during the last quarter. Pzena Investment Management LLC grew its stake in DiamondRock Hospitality by 2.1% in the second quarter. Pzena Investment Management LLC now owns 8,785,278 shares of the real estate investment trust’s stock valued at $67,295,000 after purchasing an additional 181,610 shares in the last quarter. Finally, Centersquare Investment Management LLC increased its position in shares of DiamondRock Hospitality by 6.0% during the 3rd quarter. Centersquare Investment Management LLC now owns 7,536,975 shares of the real estate investment trust’s stock worth $59,994,000 after purchasing an additional 427,467 shares during 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.