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

DiamondRock Hospitality Company (NYSE:DRH) reached a new 52-week high during mid-day trading on Tuesday. The company 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 brokerages recently commented on DRH. Zacks Research downgraded shares of DiamondRock Hospitality from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. Wells Fargo & Company upped their target price on DiamondRock Hospitality from $12.00 to $13.00 and gave the stock an “equal weight” rating in a report on Thursday, July 23rd. Citigroup increased their target price on DiamondRock Hospitality from $11.00 to $13.00 and gave the company a “neutral” rating in a research report on Wednesday, July 22nd. Morgan Stanley lifted their price target on DiamondRock Hospitality from $11.00 to $12.00 and gave the company an “equal weight” rating in a report on Monday, October 12th. Finally, Stifel Nicolaus boosted their price target on DiamondRock Hospitality from $12.50 to $13.25 and gave the stock a “hold” rating in a research report on Friday, July 31st. Four 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, the company presently has an average rating of “Hold” and a consensus price target of $12.93.

DiamondRock Hospitality Price Performance

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 stock has a market cap of $2.83 billion, a price-to-earnings ratio of 55.26, a PEG ratio of 4.50 and a beta of 1.01. The stock has a 50-day moving average price of $12.48 and a two-hundred day moving average price of $11.78.

DiamondRock Hospitality (NYSE:DRH) last announced its earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share for the quarter, topping the consensus estimate 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 for the quarter, compared to the consensus estimate of $314.98 million. During the same period in the previous year, the business earned $0.35 EPS. The firm’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, equities research analysts forecast that DiamondRock Hospitality Company will post 0.96 EPS for the current year.

DiamondRock Hospitality Increases Dividend

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

Hedge Funds Weigh In On DiamondRock Hospitality

Hedge funds have recently modified their holdings of the stock. Gallacher Capital Management LLC boosted its position in shares of DiamondRock Hospitality by 5.8% during the 1st quarter. Gallacher Capital Management LLC now owns 27,509 shares of the real estate investment trust’s stock worth $258,000 after acquiring an additional 1,504 shares in the last quarter. Ancora Advisors LLC increased its holdings in shares of DiamondRock Hospitality by 0.3% in the 2nd quarter. Ancora Advisors LLC now owns 496,340 shares of the real estate investment trust’s stock valued at $6,045,000 after acquiring an additional 1,630 shares during the last quarter. Sequoia Financial Advisors LLC increased its holdings in shares of DiamondRock Hospitality by 15.8% in the 1st quarter. Sequoia Financial Advisors LLC now owns 16,470 shares of the real estate investment trust’s stock valued at $154,000 after acquiring an additional 2,243 shares during the last quarter. Nilsine Partners LLC raised its position in shares of DiamondRock Hospitality by 3.2% during the 2nd quarter. Nilsine Partners LLC now owns 84,082 shares of the real estate investment trust’s stock worth $1,024,000 after acquiring an additional 2,625 shares in the last quarter. Finally, GAMMA Investing LLC raised its position in shares of DiamondRock Hospitality by 23.9% during the 3rd quarter. GAMMA Investing LLC now owns 16,699 shares of the real estate investment trust’s stock worth $206,000 after acquiring an additional 3,218 shares in the last quarter.

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.