DiamondRock Hospitality (NYSE:DRH) Stock Price Expected to Rise, Truist Financial Analyst Says

DiamondRock Hospitality (NYSE:DRH) had its price objective increased by investment analysts at Truist Financial from $12.00 to $15.00 in a research note issued on Thursday, Benzinga reports. The firm presently has a “buy” rating on the real estate investment trust’s stock. Truist Financial’s price target suggests a potential upside of 24.22% from the stock’s previous close.

Other research analysts have also recently issued research reports about the stock. Morgan Stanley boosted their price target 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. LADENBURG THALM/SH SH raised their target price on DiamondRock Hospitality from $13.00 to $14.00 and gave the company a “buy” rating in a report on Thursday, June 18th. Wells Fargo & Company upped their price objective on DiamondRock Hospitality from $12.00 to $13.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 23rd. Stifel Nicolaus lifted their price target on shares of DiamondRock Hospitality from $12.50 to $13.25 and gave the stock a “hold” rating in a research note on Friday, July 31st. Finally, Bank of America raised their target price on DiamondRock Hospitality from $12.50 to $13.00 and gave the stock a “buy” rating in a research report on Monday, July 20th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $12.82.

DiamondRock Hospitality Price Performance

DRH stock traded up $0.01 during trading on Thursday, hitting $12.07. The stock had a trading volume of 598,131 shares, compared to its average volume of 2,358,627. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.64 and a quick ratio of 1.64. DiamondRock Hospitality has a twelve month low of $7.47 and a twelve month high of $13.79. The stock has a market capitalization of $2.47 billion, a P/E ratio of 48.33, a PEG ratio of 4.50 and a beta of 0.97. The company’s 50-day moving average price is $12.47 and its two-hundred day moving average price is $11.21.

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

Insider Buying and Selling

In related news, Director Kathleen Merrill sold 20,000 shares of the firm’s stock in a transaction dated 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 sale, the director owned 84,335 shares in the company, valued at $1,001,899.80. This trade represents a 19.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On DiamondRock Hospitality

A number of institutional investors and hedge funds have recently made changes to their positions in DRH. Louisiana State Employees Retirement System bought a new stake in shares of DiamondRock Hospitality in the 1st quarter valued at approximately $846,000. Bank of America Corp DE increased its stake in shares of DiamondRock Hospitality by 7.2% in the first quarter. Bank of America Corp DE now owns 8,987,338 shares of the real estate investment trust’s stock valued at $84,211,000 after purchasing an additional 606,962 shares during the period. SG Americas Securities LLC raised its stake 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 valued at $39,098,000 after purchasing an additional 2,147,881 shares in the last quarter. Pzena Investment Management LLC acquired a new stake in shares of DiamondRock Hospitality in the 2nd quarter worth approximately $34,464,000. Finally, Principal Financial Group Inc. lifted its position in DiamondRock Hospitality by 37.2% in the first quarter. Principal Financial Group Inc. now owns 1,334,731 shares of the real estate investment trust’s stock worth $12,506,000 after purchasing an additional 361,674 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.