Analysts Set DiamondRock Hospitality Company (NYSE:DRH) Price Target at $12.22

Shares of DiamondRock Hospitality Company (NYSE:DRH) have been given an average recommendation of “Moderate Buy” by the twelve analysts that are covering the firm, MarketBeat Ratings reports. Seven equities research analysts have rated the stock with a hold rating, four have issued a buy rating and one has issued a strong buy rating on the company. The average 12 month price target among brokerages that have covered the stock in the last year is $12.3250.

A number of research analysts have weighed in on DRH shares. Zacks Research raised shares of DiamondRock Hospitality from a “hold” rating to a “strong-buy” rating in a report on Wednesday. Wells Fargo & Company raised their target price 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. Stifel Nicolaus lifted their price target on DiamondRock Hospitality from $12.50 to $13.25 and gave the company a “hold” rating in a research note on Friday, July 31st. Citigroup upped their price target on 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 increased their price target on DiamondRock Hospitality from $12.50 to $13.00 and gave the stock a “buy” rating in a research report on Monday, July 20th.

DiamondRock Hospitality Stock Performance

Shares of DRH stock opened at $12.82 on Monday. The firm has a market cap of $2.62 billion, a price-to-earnings ratio of 51.28, a PEG ratio of 4.50 and a beta of 0.98. DiamondRock Hospitality has a 52-week low of $7.47 and a 52-week high of $13.79. 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’s 50 day moving average is $12.43 and its 200 day moving average is $10.96.

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

DiamondRock Hospitality Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Stockholders of record on Wednesday, September 30th will be paid a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a dividend yield of 3.4%. The ex-dividend date of this dividend is Wednesday, September 30th. This is a positive change from DiamondRock Hospitality’s previous quarterly dividend of $0.09. DiamondRock Hospitality’s dividend payout ratio is currently 60.27%.

Insider Activity

In other DiamondRock Hospitality news, Director Kathleen Merrill sold 20,000 shares of the company’s stock in a transaction on Friday, June 12th. The shares were sold at an average price of $11.88, for a total transaction of $237,600.00. Following the completion of the transaction, the director directly owned 84,335 shares in the company, valued at approximately $1,001,899.80. This represents a 19.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 0.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On DiamondRock Hospitality

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Louisiana State Employees Retirement System acquired a new position in DiamondRock Hospitality in the first quarter valued at approximately $846,000. UBS Group AG lifted its stake in shares of DiamondRock Hospitality by 49.9% in the 4th quarter. UBS Group AG now owns 2,627,787 shares of the real estate investment trust’s stock valued at $23,545,000 after purchasing an additional 874,536 shares during the last quarter. Bank of America Corp DE lifted its stake in shares of DiamondRock Hospitality by 7.2% in the 1st 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 last quarter. SG Americas Securities LLC grew its holdings in shares of DiamondRock Hospitality by 106.1% during the 1st 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 period. Finally, Principal Financial Group Inc. increased its position in shares of DiamondRock Hospitality by 37.2% during the 1st 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 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.