DiamondRock Hospitality (NYSE:DRH) Sees Large Volume Increase – Still a Buy?

DiamondRock Hospitality Company (NYSE:DRH) saw an uptick in trading volume on Friday . 3,765,156 shares were traded during mid-day trading, an increase of 32% from the previous session’s volume of 2,843,073 shares.The stock last traded at $9.8850 and had previously closed at $9.81.

Analyst Ratings Changes

A number of brokerages recently issued reports on DRH. Evercore upped their price target on shares of DiamondRock Hospitality from $9.00 to $10.00 and gave the stock an “in-line” rating in a research note on Thursday, November 20th. Barclays initiated coverage on shares of DiamondRock Hospitality in a research note on Tuesday, January 6th. They issued an “equal weight” rating and a $10.00 target price on the stock. Truist Financial raised shares of DiamondRock Hospitality from a “hold” rating to a “buy” rating and raised their price target for the company from $10.00 to $11.00 in a research report on Friday, January 9th. Deutsche Bank Aktiengesellschaft raised DiamondRock Hospitality from a “hold” rating to a “buy” rating and upped their price objective for the company from $10.00 to $12.00 in a research report on Tuesday, January 13th. Finally, Wells Fargo & Company boosted their price target on DiamondRock Hospitality from $9.00 to $10.00 and gave the stock an “equal weight” rating in a research note on Monday, December 1st. Three investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $9.91.

DiamondRock Hospitality Trading Up 1.3%

The stock has a market capitalization of $2.02 billion, a PE ratio of 39.70, a P/E/G ratio of 4.50 and a beta of 1.03. 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 50 day moving average price of $9.27 and a 200-day moving average price of $8.58.

DiamondRock Hospitality Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, January 14th. Stockholders of record on Wednesday, December 31st were paid a $0.08 dividend. This represents a $0.32 annualized dividend and a dividend yield of 3.2%. The ex-dividend date was Wednesday, December 31st. DiamondRock Hospitality’s dividend payout ratio is 128.00%.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Public Sector Pension Investment Board grew its position in shares of DiamondRock Hospitality by 36.7% during the 4th quarter. Public Sector Pension Investment Board now owns 1,291,829 shares of the real estate investment trust’s stock valued at $11,575,000 after acquiring an additional 347,129 shares during the period. First Trust Advisors LP lifted its position in DiamondRock Hospitality by 44.8% during the fourth quarter. First Trust Advisors LP now owns 429,684 shares of the real estate investment trust’s stock valued at $3,850,000 after purchasing an additional 132,966 shares in the last quarter. State Street Corp grew its holdings in DiamondRock Hospitality by 1.2% during the fourth quarter. State Street Corp now owns 12,385,741 shares of the real estate investment trust’s stock valued at $112,424,000 after purchasing an additional 152,088 shares during the period. Van ECK Associates Corp increased its position in DiamondRock Hospitality by 9.8% in the fourth quarter. Van ECK Associates Corp now owns 55,111 shares of the real estate investment trust’s stock worth $494,000 after buying an additional 4,933 shares in the last quarter. Finally, Ieq Capital LLC increased its position in DiamondRock Hospitality by 21.7% in the fourth quarter. Ieq Capital LLC now owns 308,508 shares of the real estate investment trust’s stock worth $2,764,000 after buying an additional 55,105 shares in 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.