DiamondRock Hospitality (NYSE:DRH) Sets New 1-Year High – Here’s Why

DiamondRock Hospitality Company (NYSE:DRH) reached a new 52-week high on Tuesday . The stock traded as high as $13.79 and last traded at $13.38, with a volume of 6021119 shares. The stock had previously closed at $13.24.

Analyst Upgrades and Downgrades

DRH has been the topic of several recent analyst reports. Bank of America boosted their target price on DiamondRock Hospitality from $12.50 to $13.00 and gave the stock a “buy” rating in a report on Monday, July 20th. Citigroup lifted their price objective on DiamondRock Hospitality from $11.00 to $13.00 and gave the company a “neutral” rating in a research report on Wednesday, July 22nd. Barclays increased their target price on DiamondRock Hospitality from $10.00 to $12.00 and gave the stock an “equal weight” rating in a report on Monday, June 1st. Wells Fargo & Company lifted their price target on DiamondRock Hospitality from $12.00 to $13.00 and gave the company an “equal weight” rating in a report on Thursday, July 23rd. Finally, LADENBURG THALM/SH SH upped their price target on shares of DiamondRock Hospitality from $13.00 to $14.00 and gave the stock a “buy” rating in a research report on Thursday, June 18th. Four analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $12.22.

DiamondRock Hospitality Trading Up 1.1%

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 company has a market cap of $2.74 billion, a P/E ratio of 53.52, a P/E/G ratio of 4.50 and a beta of 0.98. The business has a 50-day moving average price of $12.10 and a two-hundred day moving average price of $10.65.

DiamondRock Hospitality (NYSE:DRH) last posted its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.22 by $0.22. The business had revenue of $318.29 million for the quarter, compared to analysts’ expectations of $314.98 million. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The firm’s quarterly revenue was up 4.1% compared to the same quarter last year. During the same quarter last year, the business earned $0.35 earnings per share. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. On average, analysts predict that DiamondRock Hospitality Company will post 0.96 EPS for the current year.

DiamondRock Hospitality Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 30th will be given a dividend of $0.11 per share. The ex-dividend date is Wednesday, September 30th. This represents a $0.44 annualized dividend and a dividend yield of 3.3%. This is a positive change from DiamondRock Hospitality’s previous quarterly dividend of $0.09. DiamondRock Hospitality’s dividend payout ratio is presently 60.27%.

Insider Buying and Selling

In other DiamondRock Hospitality news, Director Kathleen Merrill sold 20,000 shares of the firm’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $11.88, for a total value 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Michael A. Hartmeier sold 20,000 shares of the company’s stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $10.46, for a total transaction of $209,200.00. Following the sale, the director owned 95,354 shares of the company’s stock, valued at $997,402.84. The trade was a 17.34% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On DiamondRock Hospitality

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. UBS Group AG lifted its stake in DiamondRock Hospitality by 49.9% in the fourth quarter. UBS Group AG now owns 2,627,787 shares of the real estate investment trust’s stock valued at $23,545,000 after buying an additional 874,536 shares during the period. Louisiana State Employees Retirement System acquired a new position in shares of DiamondRock Hospitality during the 1st quarter worth about $846,000. SG Americas Securities LLC increased its stake in shares of DiamondRock Hospitality by 106.1% in the 1st quarter. SG Americas Securities LLC now owns 4,172,671 shares of the real estate investment trust’s stock valued at $39,098,000 after acquiring an additional 2,147,881 shares during the last quarter. Principal Financial Group Inc. increased its stake in shares of DiamondRock Hospitality by 37.2% in the 1st quarter. Principal Financial Group Inc. now owns 1,334,731 shares of the real estate investment trust’s stock valued at $12,506,000 after acquiring an additional 361,674 shares during the last quarter. Finally, Strs Ohio raised its position in shares of DiamondRock Hospitality by 300.0% in the 1st quarter. Strs Ohio now owns 145,600 shares of the real estate investment trust’s stock valued at $1,361,000 after acquiring an additional 109,200 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.