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

DiamondRock Hospitality (NYSE:DRH) had its price target raised by Morgan Stanley from $9.50 to $9.60 in a research note issued to investors on Tuesday,Benzinga reports. The brokerage presently has an “equal weight” rating on the real estate investment trust’s stock. Morgan Stanley’s price objective suggests a potential downside of 8.31% from the company’s previous close.

Several other brokerages have also recently weighed in on DRH. Stifel Nicolaus upped their price target on DiamondRock Hospitality from $11.00 to $11.25 and gave the stock a “hold” rating in a research note on Monday. LADENBURG THALM/SH SH assumed coverage on DiamondRock Hospitality in a research note on Thursday, March 26th. They issued a “buy” rating and a $12.00 price target on the stock. Deutsche Bank Aktiengesellschaft raised DiamondRock Hospitality from a “hold” rating to a “buy” rating and upped their price target for the stock from $10.00 to $12.00 in a research note on Tuesday, January 13th. Wells Fargo & Company upped their price target on DiamondRock Hospitality from $10.00 to $11.00 and gave the stock an “equal weight” rating in a research note on Wednesday, April 22nd. Finally, Citigroup upped their price target on DiamondRock Hospitality from $9.50 to $11.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. Three research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $10.87.

DiamondRock Hospitality Price Performance

DRH opened at $10.47 on Tuesday. 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 has a 52-week low of $7.31 and a 52-week high of $10.90. The stock has a market capitalization of $2.14 billion, a PE ratio of 41.88, a price-to-earnings-growth ratio of 4.50 and a beta of 0.99. The stock’s 50 day moving average price is $9.90 and its 200-day moving average price is $9.41.

DiamondRock Hospitality (NYSE:DRH) last issued its quarterly earnings results on Thursday, February 26th. The real estate investment trust reported $0.27 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.03. The company had revenue of $274.53 million for the quarter, compared to analysts’ expectations of $273.18 million. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The firm’s revenue for the quarter was down 1.6% on a year-over-year basis. During the same period in the prior year, the firm earned $0.24 earnings per share. DiamondRock Hospitality has set its FY 2026 guidance at 1.090-1.160 EPS. On average, equities research analysts predict that DiamondRock Hospitality will post 0.96 EPS for the current year.

Insider Buying and Selling at DiamondRock Hospitality

In other DiamondRock Hospitality news, CAO Steve Spierto sold 4,000 shares of the business’s stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $9.93, for a total value of $39,720.00. Following the sale, the chief accounting officer directly owned 77,977 shares of the company’s stock, valued at approximately $774,311.61. The trade was a 4.88% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Michael A. Hartmeier sold 20,000 shares of the business’s stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $10.46, for a total value of $209,200.00. Following the completion of the sale, the director directly owned 95,354 shares in the company, valued at $997,402.84. This trade represents a 17.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.90% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Hudson Bay Capital Management LP bought a new position in shares of DiamondRock Hospitality during the third quarter valued at $9,098,000. Wolverine Asset Management LLC bought a new position in shares of DiamondRock Hospitality during the third quarter valued at $3,216,000. Centersquare Investment Management LLC lifted its holdings in shares of DiamondRock Hospitality by 6.0% during the third quarter. Centersquare Investment Management LLC now owns 7,536,975 shares of the real estate investment trust’s stock valued at $59,994,000 after purchasing an additional 427,467 shares in the last quarter. Y Intercept Hong Kong Ltd bought a new position in DiamondRock Hospitality in the third quarter valued at about $2,823,000. Finally, SG Americas Securities LLC lifted its holdings in DiamondRock Hospitality by 881.7% in the fourth quarter. SG Americas Securities LLC now owns 2,024,790 shares of the real estate investment trust’s stock valued at $18,142,000 after acquiring an additional 1,818,527 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.