Morgan Stanley Cuts DiamondRock Hospitality (NYSE:DRH) Price Target to $8.50

DiamondRock Hospitality (NYSE:DRH) had its price target reduced by Morgan Stanley from $9.00 to $8.50 in a research note released on Wednesday,Benzinga reports. They currently have an equal weight rating on the real estate investment trust’s stock.

Several other brokerages have also recently issued reports on DRH. Wells Fargo & Company raised DiamondRock Hospitality to a “hold” rating in a report on Friday, October 3rd. Weiss Ratings reissued a “hold (c)” rating on shares of DiamondRock Hospitality in a report on Wednesday, October 8th. One equities research analyst has rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $8.88.

DiamondRock Hospitality Stock Performance

Shares of DRH stock opened at $7.81 on Wednesday. The stock has a market cap of $1.60 billion, a PE ratio of 30.02 and a beta of 1.38. The business has a 50-day simple moving average of $8.11 and a 200-day simple moving average of $7.79. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 0.64. DiamondRock Hospitality has a 52-week low of $6.18 and a 52-week high of $10.00.

DiamondRock Hospitality (NYSE:DRH) last issued its quarterly earnings data on Thursday, August 7th. The real estate investment trust reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.33 by $0.02. The business had revenue of $305.70 million during the quarter, compared to analysts’ expectations of $303.70 million. DiamondRock Hospitality had a return on equity of 4.23% and a net margin of 6.04%.The company’s revenue for the quarter was down 1.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.34 EPS. DiamondRock Hospitality has set its FY 2025 guidance at 0.960-1.060 EPS. On average, equities analysts expect that DiamondRock Hospitality will post 0.96 EPS for the current year.

DiamondRock Hospitality Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, October 14th. Investors of record on Tuesday, September 30th were issued a $0.08 dividend. The ex-dividend date of this dividend was Tuesday, September 30th. This represents a $0.32 dividend on an annualized basis and a yield of 4.1%. DiamondRock Hospitality’s dividend payout ratio is presently 123.08%.

Institutional Investors Weigh In On DiamondRock Hospitality

Several large investors have recently bought and sold shares of the company. State Street Corp increased its stake in DiamondRock Hospitality by 0.8% during the 2nd quarter. State Street Corp now owns 12,587,578 shares of the real estate investment trust’s stock worth $97,400,000 after buying an additional 93,929 shares in the last quarter. Bank of America Corp DE increased its stake in DiamondRock Hospitality by 17.5% during the 2nd quarter. Bank of America Corp DE now owns 9,231,991 shares of the real estate investment trust’s stock worth $70,717,000 after buying an additional 1,377,897 shares in the last quarter. Alyeska Investment Group L.P. increased its stake in DiamondRock Hospitality by 2.8% during the 1st quarter. Alyeska Investment Group L.P. now owns 8,812,253 shares of the real estate investment trust’s stock worth $68,031,000 after buying an additional 236,176 shares in the last quarter. Pzena Investment Management LLC increased its stake in DiamondRock Hospitality by 2.1% during the 2nd quarter. Pzena Investment Management LLC now owns 8,785,278 shares of the real estate investment trust’s stock worth $67,295,000 after buying an additional 181,610 shares in the last quarter. Finally, Centersquare Investment Management LLC increased its stake in DiamondRock Hospitality by 12.9% during the 1st quarter. Centersquare Investment Management LLC now owns 5,967,761 shares of the real estate investment trust’s stock worth $46,071,000 after buying an additional 683,839 shares in the last quarter.

DiamondRock Hospitality Company Profile

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels with over 9,700 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment.