DiamondRock Hospitality (NYSE:DRH) Cut to Hold at Zacks Research

DiamondRock Hospitality (NYSE:DRH) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Monday, Zacks reports.

DRH has been the subject of a number of other reports. LADENBURG THALM/SH SH raised their target price on shares of DiamondRock Hospitality from $13.00 to $14.00 and gave the company a “buy” rating in a report on Thursday, June 18th. Morgan Stanley increased their price objective on shares of DiamondRock Hospitality from $10.00 to $11.00 and gave the company an “equal weight” rating in a research report on Tuesday, August 18th. Barclays lifted their price objective on shares of DiamondRock Hospitality from $12.00 to $14.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 27th. Citigroup boosted their target price on shares of DiamondRock Hospitality from $11.00 to $13.00 and gave the stock a “neutral” rating in a report on Wednesday, July 22nd. Finally, Bank of America upped their target price on shares of DiamondRock Hospitality from $12.50 to $13.00 and gave the company a “buy” rating in a research report on Monday, July 20th. Four investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, DiamondRock Hospitality has a consensus rating of “Hold” and a consensus target price of $12.82.

DiamondRock Hospitality Price Performance

NYSE:DRH opened at $12.47 on Monday. The company has a market capitalization of $2.55 billion, a P/E ratio of 49.88, a P/E/G ratio of 4.50 and a beta of 0.97. The business’s 50-day moving average is $12.52 and its 200 day moving average is $11.45. 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 has a 12 month low of $7.47 and a 12 month 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 (EPS) for the quarter, topping analysts’ consensus estimates of $0.22 by $0.22. The business had revenue of $318.29 million for the quarter, compared to the consensus estimate of $314.98 million. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The company’s revenue was up 4.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.35 EPS. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. On average, equities research analysts forecast that DiamondRock Hospitality will post 0.96 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of DRH. Bank of America Corp DE bought a new stake in shares of DiamondRock Hospitality during the 2nd quarter worth approximately $129,710,000. Louisiana State Employees Retirement System bought a new position in DiamondRock Hospitality in the 1st quarter valued at $846,000. Janus Henderson Group PLC grew its position in DiamondRock Hospitality by 10.1% in the 1st quarter. Janus Henderson Group PLC now owns 1,312,694 shares of the real estate investment trust’s stock valued at $12,299,000 after acquiring an additional 119,921 shares during the last quarter. Pzena Investment Management LLC purchased a new stake in DiamondRock Hospitality in the second quarter worth $34,464,000. Finally, SG Americas Securities LLC lifted its position in shares of DiamondRock Hospitality by 106.1% during the first quarter. SG Americas Securities LLC now owns 4,172,671 shares of the real estate investment trust’s stock worth $39,098,000 after purchasing an additional 2,147,881 shares during 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 resorts in the United States. The company focuses on lodging properties in locations that appeal to business and leisure travelers, including gateway cities, destination resorts and other high-demand markets.

DiamondRock’s properties operate under a combination of nationally recognized hotel brands and independent or company-developed concepts. Its portfolio includes full-service hotels, lifestyle properties and resort accommodations, with services such as guest rooms, restaurants, meeting and event facilities, recreational amenities and other hospitality offerings.

The company was formed in 2004 through a spin-off from Marriott International and is headquartered in Bethesda, Maryland.