DiamondRock Hospitality (NYSE:DRH) Sets New 1-Year High – What’s Next?

DiamondRock Hospitality Company (NYSE:DRH) shares hit a new 52-week high on Tuesday . The company 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 Ratings Changes

Several brokerages recently commented on DRH. Stifel Nicolaus increased their price objective on shares of DiamondRock Hospitality from $12.50 to $13.25 and gave the company a “hold” rating in a research report on Friday, July 31st. Wells Fargo & Company upped their price objective on DiamondRock Hospitality from $12.00 to $13.00 and gave the company an “equal weight” rating in a research report on Thursday, July 23rd. Citigroup lifted their price target on shares of DiamondRock Hospitality from $11.00 to $13.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 22nd. Morgan Stanley lifted their target price on DiamondRock Hospitality from $9.60 to $10.00 and gave the company an “equal weight” rating in a research report on Friday, July 17th. Finally, LADENBURG THALM/SH SH raised their target price on shares of DiamondRock Hospitality from $13.00 to $14.00 and gave the stock a “buy” rating in a research note on Thursday, June 18th. Four analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $12.22.

DiamondRock Hospitality Stock Performance

The company has a market capitalization of $2.71 billion, a P/E ratio of 53.04, a price-to-earnings-growth ratio of 4.50 and a beta of 0.98. The business has a 50 day moving average of $12.19 and a 200 day moving average of $10.71. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 0.70.

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, sell-side analysts predict that DiamondRock Hospitality Company will post 0.96 earnings per share for the current 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 given a $0.11 dividend. This is a boost from DiamondRock Hospitality’s previous quarterly dividend of $0.09. This represents a $0.44 annualized dividend and a yield of 3.3%. The ex-dividend date is Wednesday, September 30th. DiamondRock Hospitality’s dividend payout ratio (DPR) is presently 60.27%.

Insiders Place Their Bets

In other DiamondRock Hospitality news, Director Kathleen Merrill sold 20,000 shares of DiamondRock Hospitality stock in a transaction 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 completion of the transaction, the director directly owned 84,335 shares of the company’s stock, valued at $1,001,899.80. This trade represents a 19.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Michael A. Hartmeier sold 20,000 shares of the business’s stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $10.46, for a total transaction of $209,200.00. Following the completion of the sale, the director owned 95,354 shares in the company, valued at approximately $997,402.84. This trade represents a 17.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Allworth Financial LP raised its position in DiamondRock Hospitality by 146.0% during the fourth quarter. Allworth Financial LP now owns 2,859 shares of the real estate investment trust’s stock valued at $26,000 after purchasing an additional 1,697 shares during the period. First Horizon Corp lifted its stake 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 valued at $29,000 after purchasing an additional 1,139 shares during the last quarter. EverSource Wealth Advisors LLC boosted its holdings in shares of DiamondRock Hospitality by 77.3% in the 4th quarter. EverSource Wealth Advisors LLC now owns 3,436 shares of the real estate investment trust’s stock worth $31,000 after purchasing an additional 1,498 shares during the period. Danske Bank A S purchased a new position in shares of DiamondRock Hospitality in the 3rd quarter worth approximately $33,000. Finally, Global Retirement Partners LLC increased its position in shares of DiamondRock Hospitality by 12,114.7% during 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.

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.