DiamondRock Hospitality Company (NYSE:DRH) Given Consensus Recommendation of “Moderate Buy” by Brokerages

DiamondRock Hospitality Company (NYSE:DRH) has earned a consensus rating of “Moderate Buy” from the twelve brokerages that are presently covering the company, Marketbeat Ratings reports. Seven investment analysts have rated the stock with a hold recommendation, four have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price target among analysts that have issued ratings on the stock in the last year is $12.8250.

Several brokerages have commented on DRH. Wells Fargo & Company raised their price objective on DiamondRock Hospitality from $12.00 to $13.00 and gave the company an “equal weight” rating in a report on Thursday, July 23rd. Bank of America upped their target price on DiamondRock Hospitality from $12.50 to $13.00 and gave the stock a “buy” rating in a research note on Monday, July 20th. Morgan Stanley upped their price objective on shares of DiamondRock Hospitality from $10.00 to $11.00 and gave the stock an “equal weight” rating in a research report on Tuesday, August 18th. Truist Financial boosted their price target on DiamondRock Hospitality from $12.00 to $15.00 and gave the stock a “buy” rating in a research report on Thursday. Finally, LADENBURG THALM/SH SH raised their target price on shares of DiamondRock Hospitality from $13.00 to $14.00 and gave the stock a “buy” rating in a research note on Thursday, June 18th.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of DRH. Sequoia Financial Advisors LLC increased its position in shares of DiamondRock Hospitality by 38.3% during the second quarter. Sequoia Financial Advisors LLC now owns 22,772 shares of the real estate investment trust’s stock valued at $277,000 after acquiring an additional 6,302 shares during the last quarter. WINTON GROUP Ltd raised its stake in shares of DiamondRock Hospitality by 2,699.7% in the 2nd quarter. WINTON GROUP Ltd now owns 425,556 shares of the real estate investment trust’s stock valued at $5,183,000 after acquiring an additional 410,356 shares during the period. Engineers Gate Manager LP lifted its holdings in shares of DiamondRock Hospitality by 123.5% in the 2nd quarter. Engineers Gate Manager LP now owns 175,670 shares of the real estate investment trust’s stock worth $2,140,000 after acquiring an additional 97,070 shares during the last quarter. Squarepoint Ops LLC acquired a new position in shares of DiamondRock Hospitality in the 2nd quarter worth approximately $846,000. Finally, Nykredit A S acquired a new position in shares of DiamondRock Hospitality in the 2nd quarter worth approximately $81,000.

DiamondRock Hospitality Trading Up 0.9%

DRH stock opened at $12.18 on Friday. The company’s 50-day simple moving average is $12.47 and its 200-day simple moving average is $11.23. 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 has a 52-week low of $7.47 and a 52-week high of $13.79. The firm has a market cap of $2.49 billion, a P/E ratio of 48.72, a PEG ratio of 4.50 and a beta of 0.97.

DiamondRock Hospitality (NYSE:DRH) last announced its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share for the quarter, beating the consensus estimate of $0.22 by $0.22. The firm had revenue of $318.29 million during the quarter, compared to analyst estimates of $314.98 million. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.DiamondRock Hospitality’s revenue for the quarter 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. As a group, equities analysts forecast that DiamondRock Hospitality will post 0.96 EPS for the current fiscal year.

DiamondRock Hospitality Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 30th will be issued a dividend of $0.11 per share. The ex-dividend date is Wednesday, September 30th. This represents a $0.44 dividend on an annualized basis and a dividend yield of 3.6%. This is a boost from DiamondRock Hospitality’s previous quarterly dividend of $0.09. DiamondRock Hospitality’s dividend payout ratio (DPR) is currently 60.27%.

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.