Morgan Stanley Forecasts Strong Price Appreciation for DiamondRock Hospitality (NYSE:DRH) Stock

DiamondRock Hospitality (NYSE:DRH) had its price objective upped by equities researchers at Morgan Stanley from $10.00 to $11.00 in a report issued on Tuesday,Benzinga reports. The firm currently has an “equal weight” rating on the real estate investment trust’s stock. Morgan Stanley’s target price indicates a potential downside of 11.00% from the stock’s current price.

A number of other research analysts also recently weighed in on the stock. Stifel Nicolaus raised their price target on shares of DiamondRock Hospitality from $12.50 to $13.25 and gave the company a “hold” rating in a report on Friday, July 31st. Truist Financial upped their price objective on shares of DiamondRock Hospitality from $11.00 to $12.00 and gave the stock a “buy” rating in a report on Tuesday, May 26th. Bank of America increased their target price on shares of DiamondRock Hospitality from $12.50 to $13.00 and gave the stock a “buy” rating in a research report on Monday, July 20th. LADENBURG THALM/SH SH raised their target price on DiamondRock Hospitality from $13.00 to $14.00 and gave the company a “buy” rating in a report on Thursday, June 18th. Finally, Wells Fargo & Company boosted their price target on DiamondRock Hospitality from $12.00 to $13.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 23rd. Four investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $12.32.

DiamondRock Hospitality Stock Performance

NYSE DRH opened at $12.36 on Tuesday. DiamondRock Hospitality has a 1-year low of $7.47 and a 1-year high of $13.79. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 0.70. The company has a market capitalization of $2.53 billion, a PE ratio of 49.44, a price-to-earnings-growth ratio of 4.50 and a beta of 0.98. The firm’s fifty day simple moving average is $12.36 and its 200-day simple moving average is $10.87.

DiamondRock Hospitality (NYSE:DRH) last released its quarterly earnings data on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.22 by $0.22. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The firm had revenue of $318.29 million during the quarter, compared to analysts’ expectations of $314.98 million. During the same quarter last year, the firm earned $0.35 earnings per share. The business’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, sell-side analysts anticipate that DiamondRock Hospitality will post 0.96 earnings per share for the current fiscal year.

Insider Transactions at DiamondRock Hospitality

In other news, Director Kathleen Merrill sold 20,000 shares of the firm’s stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $11.88, for a total value of $237,600.00. Following the sale, the director directly owned 84,335 shares of the company’s stock, valued at approximately $1,001,899.80. This trade represents a 19.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.90% of the stock is owned by company insiders.

Institutional Trading of DiamondRock Hospitality

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new position in shares of DiamondRock Hospitality during the second quarter worth approximately $475,282,000. State Street Corp grew its position in DiamondRock Hospitality by 0.8% in 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 purchasing an additional 93,929 shares during the last quarter. Bank of America Corp DE bought a new position in shares of DiamondRock Hospitality during the 2nd quarter worth about $129,710,000. Alyeska Investment Group L.P. lifted its stake in shares of DiamondRock Hospitality by 5.5% in 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 buying an additional 475,611 shares during the period. Finally, Centersquare Investment Management LLC increased its stake in DiamondRock Hospitality by 3.2% during the fourth quarter. Centersquare Investment Management LLC now owns 7,780,988 shares of the real estate investment trust’s stock valued at $69,718,000 after acquiring an additional 244,013 shares during the period.

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.