DiamondRock Hospitality (NYSE:DRH) Sets New 52-Week High – Here’s What Happened

DiamondRock Hospitality Company (NYSE:DRH)’s share price hit a new 52-week high during trading on Tuesday. The stock traded as high as $13.82 and last traded at $13.7950, with a volume of 1,147,819 shares trading hands. The stock had previously closed at $13.46.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. Barclays raised their price objective on shares of DiamondRock Hospitality from $12.00 to $14.00 and gave the stock an “equal weight” rating in a report on Thursday, August 27th. Bank of America boosted their price objective 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. Stifel Nicolaus upped their target price 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. Zacks Research downgraded shares of DiamondRock Hospitality from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. Finally, Wells Fargo & Company increased 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 report on Thursday, July 23rd. Four equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat, DiamondRock Hospitality presently has an average rating of “Hold” and an average price target of $12.93.

DiamondRock Hospitality Price Performance

The firm has a market capitalization of $2.83 billion, a price-to-earnings ratio of 55.26, a P/E/G ratio of 4.50 and a beta of 1.01. The company has a fifty day moving average price of $12.48 and a two-hundred day moving average price of $11.78. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 0.70.

DiamondRock Hospitality (NYSE:DRH) last announced its earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.22 by $0.22. The business had revenue of $318.29 million for the quarter, compared to analyst estimates of $314.98 million. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The company’s revenue for the quarter was up 4.1% compared to the same quarter last year. During the same period last year, the firm posted $0.35 earnings per share. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. On average, equities research analysts expect that DiamondRock Hospitality Company will post 0.96 EPS for the current fiscal year.

DiamondRock Hospitality Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 14th. Investors of record on Wednesday, September 30th were paid a dividend of $0.11 per share. The ex-dividend date was Wednesday, September 30th. This represents a $0.44 dividend on an annualized basis and a yield of 3.2%. This is an increase from DiamondRock Hospitality’s previous quarterly dividend of $0.09. DiamondRock Hospitality’s dividend payout ratio (DPR) is currently 60.27%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new stake in shares of DiamondRock Hospitality during the second quarter worth approximately $475,282,000. Bank of America Corp DE purchased a new position in DiamondRock Hospitality in the 2nd quarter valued at $129,710,000. SG Americas Securities LLC grew its position in DiamondRock Hospitality by 106.1% in the 1st quarter. SG Americas Securities LLC now owns 4,172,671 shares of the real estate investment trust’s stock valued at $39,098,000 after buying an additional 2,147,881 shares during the last quarter. Dimensional Fund Advisors LP increased its stake in DiamondRock Hospitality by 1.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,972,171 shares of the real estate investment trust’s stock valued at $27,850,000 after buying an additional 37,482 shares during the period. Finally, Pzena Investment Management LLC acquired a new position in DiamondRock Hospitality in the 2nd quarter valued at $34,464,000.

About DiamondRock Hospitality

DiamondRock Hospitality Company (NYSE: DRH) is a self-advised real estate investment trust that owns a portfolio of hotels and resort properties in the United States. The company focuses on lodging real estate in leisure destinations and gateway markets, with properties serving business travelers, vacationers, and group customers.

DiamondRock’s portfolio includes hotels operated under nationally recognized brands as well as independent and boutique properties. Its business activities include acquiring, owning, leasing, and strategically managing hospitality real estate, while day-to-day hotel operations are generally carried out by third-party management companies and brand operators.

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