DiamondRock Hospitality (NYSE:DRH) Sees Large Volume Increase – What’s Next?

Shares of DiamondRock Hospitality Company (NYSE:DRH) saw strong trading volume on Tuesday . 3,790,381 shares traded hands during trading, an increase of 43% from the previous session’s volume of 2,643,076 shares.The stock last traded at $9.3150 and had previously closed at $9.45.

Wall Street Analysts Forecast Growth

DRH has been the subject of several recent analyst reports. Evercore ISI raised their price objective on shares of DiamondRock Hospitality from $9.00 to $10.00 and gave the stock an “in-line” rating in a report on Thursday, November 20th. Barclays initiated coverage on DiamondRock Hospitality in a report on Tuesday, January 6th. They set an “equal weight” rating and a $10.00 price target for the company. Wells Fargo & Company boosted their price objective on DiamondRock Hospitality from $9.00 to $10.00 and gave the stock an “equal weight” rating in a research note on Monday, December 1st. Morgan Stanley cut their price target on DiamondRock Hospitality from $9.00 to $8.50 and set an “equal weight” rating for the company in a report on Wednesday, October 22nd. Finally, Truist Financial raised shares of DiamondRock Hospitality from a “hold” rating to a “buy” rating and increased their price objective for the stock from $10.00 to $11.00 in a report on Friday, January 9th. Three investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $9.91.

DiamondRock Hospitality Stock Performance

The firm has a fifty day moving average of $9.12 and a 200-day moving average of $8.46. 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 firm has a market cap of $1.88 billion, a P/E ratio of 36.78, a PEG ratio of 4.50 and a beta of 1.03.

DiamondRock Hospitality (NYSE:DRH) last released its earnings results on Thursday, November 6th. The real estate investment trust reported $0.29 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.25 by $0.04. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The company had revenue of $285.38 million for the quarter, compared to the consensus estimate of $277.45 million. During the same period in the prior year, the company posted $0.27 EPS. The company’s revenue was up .1% compared to the same quarter last year. DiamondRock Hospitality has set its FY 2025 guidance at 1.020-1.06 EPS. Research analysts predict that DiamondRock Hospitality Company will post 0.96 earnings per share for the current fiscal year.

DiamondRock Hospitality Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, January 14th. Investors of record on Wednesday, December 31st were paid a dividend of $0.08 per share. The ex-dividend date of this dividend was Wednesday, December 31st. This represents a $0.32 dividend on an annualized basis and a dividend yield of 3.5%. DiamondRock Hospitality’s payout ratio is 128.00%.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. JPMorgan Chase & Co. increased its stake in DiamondRock Hospitality by 106.3% in the second quarter. JPMorgan Chase & Co. now owns 5,412,002 shares of the real estate investment trust’s stock valued at $41,456,000 after purchasing an additional 2,788,022 shares in the last quarter. Pzena Investment Management LLC grew its holdings in shares of DiamondRock Hospitality by 2.1% in the 2nd quarter. Pzena Investment Management LLC now owns 8,785,278 shares of the real estate investment trust’s stock valued at $67,295,000 after buying an additional 181,610 shares during the period. Elo Mutual Pension Insurance Co bought a new stake in shares of DiamondRock Hospitality in the 2nd quarter valued at $213,000. Lasalle Investment Management Securities LLC raised its stake in DiamondRock Hospitality by 17.5% during the 2nd quarter. Lasalle Investment Management Securities LLC now owns 1,299,074 shares of the real estate investment trust’s stock worth $9,951,000 after buying an additional 193,699 shares during the period. Finally, Ethic Inc. bought a new position in DiamondRock Hospitality during the second quarter worth about $96,000.

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.