DiamondRock Hospitality (NYSE:DRH) Rating Increased to Strong-Buy at Zacks Research

Zacks Research upgraded shares of DiamondRock Hospitality (NYSE:DRH) from a hold rating to a strong-buy rating in a research report sent to investors on Wednesday morning,Zacks.com reports.

DRH has been the topic of several other reports. Bank of America lifted their price target on shares of DiamondRock Hospitality from $12.50 to $13.00 and gave the stock a “buy” rating in a research note on Monday, July 20th. Citigroup upped their price objective on shares of DiamondRock Hospitality from $11.00 to $13.00 and gave the company a “neutral” rating in a research note on Wednesday, July 22nd. Truist Financial raised their price objective on DiamondRock Hospitality from $11.00 to $12.00 and gave the stock a “buy” rating in a report on Tuesday, May 26th. LADENBURG THALM/SH SH lifted their target price on DiamondRock Hospitality from $13.00 to $14.00 and gave the stock a “buy” rating in a research report on Thursday, June 18th. Finally, Morgan Stanley boosted their target price on DiamondRock Hospitality from $10.00 to $11.00 and gave the company an “equal weight” rating in a report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat, DiamondRock Hospitality has an average rating of “Moderate Buy” and a consensus target price of $12.32.

DiamondRock Hospitality Price Performance

DRH stock opened at $12.77 on Wednesday. The business has a 50 day moving average price of $12.41 and a 200 day moving average price of $10.95. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 0.70. The stock has a market cap of $2.61 billion, a price-to-earnings ratio of 51.08, a PEG ratio of 4.50 and a beta of 0.98. DiamondRock Hospitality has a fifty-two week low of $7.47 and a fifty-two week high of $13.79.

DiamondRock Hospitality (NYSE:DRH) last released its quarterly earnings data on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share 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 analysts’ expectations of $314.98 million. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The firm’s revenue for the quarter was up 4.1% on a year-over-year basis. During the same quarter last year, the company earned $0.35 earnings per share. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. Equities research analysts anticipate that DiamondRock Hospitality will post 0.96 earnings per share 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. Investors of record on Wednesday, September 30th will be paid 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 yield of 3.4%. This is an increase from DiamondRock Hospitality’s previous quarterly dividend of $0.09. DiamondRock Hospitality’s dividend payout ratio (DPR) is currently 60.27%.

Insider Transactions at DiamondRock Hospitality

In other DiamondRock Hospitality news, Director Kathleen Merrill sold 20,000 shares of the firm’s stock in a transaction 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. This trade represents a 19.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders own 0.90% of the company’s stock.

Institutional Investors Weigh In On DiamondRock Hospitality

Several hedge funds have recently made changes to their positions in the business. Allworth Financial LP increased its position in DiamondRock Hospitality by 146.0% in the 4th quarter. Allworth Financial LP now owns 2,859 shares of the real estate investment trust’s stock valued at $26,000 after acquiring an additional 1,697 shares during the period. First Horizon Corp lifted its position in 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 worth $29,000 after acquiring an additional 1,139 shares during the period. EverSource Wealth Advisors LLC lifted 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 worth $31,000 after acquiring an additional 1,498 shares during the period. Danske Bank A S acquired a new stake in DiamondRock Hospitality during the 3rd quarter worth approximately $33,000. Finally, Global Retirement Partners LLC grew its stake in shares of DiamondRock Hospitality by 12,114.7% in the 4th quarter. Global Retirement Partners LLC now owns 4,153 shares of the real estate investment trust’s stock valued at $37,000 after purchasing an additional 4,119 shares during the last quarter.

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.