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

DiamondRock Hospitality (NYSE:DRH) was upgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a report released on Wednesday,Zacks.com reports.

DRH has been the topic of a number of other reports. Citigroup lifted their target price on DiamondRock Hospitality from $11.00 to $13.00 and gave the stock a “neutral” rating in a report on Wednesday, July 22nd. Truist Financial raised their price objective on shares of DiamondRock Hospitality from $11.00 to $12.00 and gave the company a “buy” rating in a research report on Tuesday, May 26th. Stifel Nicolaus lifted their price objective on shares of DiamondRock Hospitality from $12.50 to $13.25 and gave the stock a “hold” rating in a research note on Friday, July 31st. Barclays boosted their target price on shares of DiamondRock Hospitality from $10.00 to $12.00 and gave the stock an “equal weight” rating in a report on Monday, June 1st. Finally, Bank of America increased their target price on shares of DiamondRock Hospitality from $12.50 to $13.00 and gave the company a “buy” rating in a research note on Monday, July 20th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $12.32.

DiamondRock Hospitality Stock Performance

Shares of NYSE DRH opened at $12.77 on Wednesday. DiamondRock Hospitality has a 1 year low of $7.47 and a 1 year high of $13.79. The firm has a market cap of $2.61 billion, a P/E ratio of 51.08, a PEG ratio of 4.50 and a beta of 0.98. The stock has a fifty day moving average price of $12.41 and a two-hundred 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) last posted its quarterly earnings data on Thursday, July 30th. The real estate investment trust reported $0.44 EPS for the quarter, topping analysts’ consensus estimates of $0.22 by $0.22. The company had revenue of $318.29 million for the quarter, compared to the consensus estimate of $314.98 million. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The company’s quarterly revenue was up 4.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.35 EPS. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. Research analysts forecast that DiamondRock Hospitality will post 0.96 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Kathleen Merrill sold 20,000 shares of the business’s 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 transaction, the director directly owned 84,335 shares of the company’s stock, valued at approximately $1,001,899.80. The trade was a 19.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.90% of the company’s stock.

Hedge Funds Weigh In On DiamondRock Hospitality

Institutional investors and hedge funds have recently modified their holdings of the stock. Allworth Financial LP increased its stake in shares of DiamondRock Hospitality by 146.0% in the fourth quarter. Allworth Financial LP now owns 2,859 shares of the real estate investment trust’s stock worth $26,000 after acquiring an additional 1,697 shares during the last quarter. First Horizon Corp lifted its holdings in shares of DiamondRock Hospitality by 54.9% during the 4th quarter. First Horizon Corp now owns 3,214 shares of the real estate investment trust’s stock valued at $29,000 after buying an additional 1,139 shares during the last quarter. EverSource Wealth Advisors LLC increased its holdings in DiamondRock Hospitality by 77.3% in the fourth 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 last quarter. Global Retirement Partners LLC bought a new stake in DiamondRock Hospitality in the second quarter worth approximately $50,000. Finally, Danske Bank A S bought a new stake in DiamondRock Hospitality in the third quarter worth $33,000.

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.