DiamondRock Hospitality (NYSE:DRH) Sets New 52-Week High – Should You Buy?

DiamondRock Hospitality Company (NYSE:DRH)’s stock price reached a new 52-week high on Wednesday . The stock traded as high as $12.05 and last traded at $12.02, with a volume of 1374024 shares changing hands. The stock had previously closed at $11.94.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the stock. Citigroup lifted their price objective on shares of DiamondRock Hospitality from $9.50 to $11.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. Truist Financial raised their target price on shares of DiamondRock Hospitality from $11.00 to $12.00 and gave the stock a “buy” rating in a report on Tuesday, May 26th. Stifel Nicolaus set a $12.25 price target on shares of DiamondRock Hospitality in a research note on Thursday, June 4th. Morgan Stanley upped their price target on shares of DiamondRock Hospitality from $9.50 to $9.60 and gave the company an “equal weight” rating in a report on Tuesday, May 12th. Finally, Wells Fargo & Company increased their price objective on shares of DiamondRock Hospitality from $11.00 to $12.00 and gave the stock an “equal weight” rating in a research report on Monday, June 1st. Three investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $11.43.

DiamondRock Hospitality Stock Up 0.7%

The company’s 50 day moving average is $10.71 and its 200 day moving average is $9.86. The company has a market cap of $2.46 billion, a PE ratio of 48.08, a P/E/G ratio of 4.50 and a beta of 1.00. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 0.70.

DiamondRock Hospitality Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, July 14th. Stockholders of record on Tuesday, June 30th will be paid a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a dividend yield of 3.0%. The ex-dividend date of this dividend is Tuesday, June 30th. DiamondRock Hospitality’s payout ratio is currently 76.60%.

Insider Buying and Selling

In other DiamondRock Hospitality news, Director Kathleen Merrill sold 20,000 shares of the company’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $11.88, for a total value of $237,600.00. Following the completion of the sale, the director directly owned 84,335 shares in the company, valued at approximately $1,001,899.80. This represents a 19.17% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Michael A. Hartmeier sold 20,000 shares of the 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 transaction, the director directly owned 95,354 shares in the company, valued at $997,402.84. The trade was a 17.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.90% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. First Horizon Corp lifted its position in shares of DiamondRock Hospitality by 54.9% in the 4th quarter. First Horizon Corp now owns 3,214 shares of the real estate investment trust’s stock worth $29,000 after purchasing an additional 1,139 shares during the period. ProShare Advisors LLC lifted its holdings in DiamondRock Hospitality by 3.1% during the fourth quarter. ProShare Advisors LLC now owns 40,041 shares of the real estate investment trust’s stock worth $359,000 after buying an additional 1,203 shares during the period. Mirae Asset Global Investments Co. Ltd. lifted its holdings in DiamondRock Hospitality by 32.5% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,990 shares of the real estate investment trust’s stock worth $54,000 after buying an additional 1,470 shares during the period. EverSource Wealth Advisors LLC boosted its position in DiamondRock Hospitality by 77.3% during the 4th quarter. EverSource Wealth Advisors LLC now owns 3,436 shares of the real estate investment trust’s stock valued at $31,000 after acquiring an additional 1,498 shares in the last quarter. Finally, Gallacher Capital Management LLC boosted its position in 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 valued at $258,000 after acquiring an additional 1,504 shares in the last quarter.

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.