DiamondRock Hospitality (NYSE:DRH) Sets New 1-Year High – Here’s Why

DiamondRock Hospitality Company (NYSE:DRH)’s stock price reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $12.05 and last traded at $12.02, with a volume of 1374024 shares traded. The stock had previously closed at $11.94.

Wall Street Analysts Forecast Growth

DRH has been the topic of several research reports. LADENBURG THALM/SH SH boosted their target price on DiamondRock Hospitality from $13.00 to $14.00 and gave the company a “buy” rating in a research note on Thursday. Truist Financial increased their target price on shares of DiamondRock Hospitality from $11.00 to $12.00 and gave the stock a “buy” rating in a report on Tuesday, May 26th. Wells Fargo & Company lifted their price target on shares of DiamondRock Hospitality from $11.00 to $12.00 and gave the company an “equal weight” rating in a research note on Monday, June 1st. Stifel Nicolaus set a $12.25 price objective on shares of DiamondRock Hospitality in a research note on Thursday, June 4th. Finally, Morgan Stanley lifted their target price on DiamondRock Hospitality from $9.50 to $9.60 and gave the company an “equal weight” rating in a research report on Tuesday, May 12th. Three analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, DiamondRock Hospitality presently has an average rating of “Hold” and an average target price of $11.65.

DiamondRock Hospitality Stock Up 3.7%

The firm has a market capitalization of $2.52 billion, a P/E ratio of 49.24, a PEG ratio of 4.50 and a beta of 1.00. The firm’s 50 day moving average is $10.82 and its two-hundred day moving average is $9.90. 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 Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 14th. Stockholders of record on Tuesday, June 30th will be paid a dividend of $0.09 per share. The ex-dividend date is Tuesday, June 30th. This represents a $0.36 annualized dividend and a dividend yield of 2.9%. DiamondRock Hospitality’s payout ratio is currently 76.60%.

Insider Transactions at DiamondRock Hospitality

In related news, Director Kathleen Merrill sold 20,000 shares of DiamondRock Hospitality stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $11.88, for a total transaction of $237,600.00. Following the completion of the transaction, the director owned 84,335 shares in the company, valued at approximately $1,001,899.80. This trade represents a 19.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Michael A. Hartmeier sold 20,000 shares of the business’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $10.46, for a total value of $209,200.00. Following the transaction, the director directly owned 95,354 shares in the company, valued at approximately $997,402.84. This trade represents a 17.34% decrease in their position. The SEC filing for this sale provides additional information. 0.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Hudson Bay Capital Management LP bought a new position in DiamondRock Hospitality in the 3rd quarter valued at about $9,098,000. Centersquare Investment Management LLC boosted its holdings in shares of DiamondRock Hospitality by 6.0% during the third quarter. Centersquare Investment Management LLC now owns 7,536,975 shares of the real estate investment trust’s stock worth $59,994,000 after acquiring an additional 427,467 shares during the period. UBS Group AG boosted its holdings in shares of DiamondRock Hospitality by 49.9% during the fourth quarter. UBS Group AG now owns 2,627,787 shares of the real estate investment trust’s stock worth $23,545,000 after acquiring an additional 874,536 shares during the period. SG Americas Securities LLC grew its position in shares of DiamondRock Hospitality by 881.7% in the fourth quarter. SG Americas Securities LLC now owns 2,024,790 shares of the real estate investment trust’s stock valued at $18,142,000 after purchasing an additional 1,818,527 shares during the last quarter. Finally, Lighthouse Investment Partners LLC grew its position in shares of DiamondRock Hospitality by 35.2% in the third quarter. Lighthouse Investment Partners LLC now owns 825,000 shares of the real estate investment trust’s stock valued at $6,567,000 after purchasing an additional 215,000 shares during the last quarter.

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.