DiamondRock Hospitality (NYSE:DRH) Sets New 52-Week High – Still a Buy?

DiamondRock Hospitality Company (NYSE:DRH) reached a new 52-week high during trading on Thursday . The company traded as high as $11.87 and last traded at $11.64, with a volume of 2938024 shares trading hands. The stock had previously closed at $11.70.

Analyst Upgrades and Downgrades

A number of research firms recently commented on DRH. LADENBURG THALM/SH SH began coverage on shares of DiamondRock Hospitality in a research note on Thursday, March 26th. They set a “buy” rating and a $12.00 price objective on the stock. Citigroup raised their price objective on shares of DiamondRock Hospitality from $9.50 to $11.00 and gave the company a “neutral” rating in a research note on Wednesday, May 6th. Truist Financial raised their price objective on shares of DiamondRock Hospitality from $11.00 to $12.00 and gave the company a “buy” rating in a research note on Tuesday, May 26th. Morgan Stanley raised their price objective on shares of DiamondRock Hospitality from $9.50 to $9.60 and gave the company an “equal weight” rating in a research note on Tuesday, May 12th. Finally, Wells Fargo & Company raised their price objective 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. Three research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, DiamondRock Hospitality currently has an average rating of “Hold” and an average price target of $11.43.

DiamondRock Hospitality Stock Performance

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 stock has a market cap of $2.38 billion, a price-to-earnings ratio of 46.56, a price-to-earnings-growth ratio of 4.50 and a beta of 1.00. The company’s 50-day simple moving average is $10.51 and its 200-day simple moving average is $9.78.

DiamondRock Hospitality Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 14th. Shareholders of record on Tuesday, June 30th will be given a $0.09 dividend. The ex-dividend date is Tuesday, June 30th. This represents a $0.36 annualized dividend and a yield of 3.1%. DiamondRock Hospitality’s payout ratio is 76.60%.

Insider Transactions at DiamondRock Hospitality

In other DiamondRock Hospitality news, Director Michael A. Hartmeier sold 20,000 shares of DiamondRock Hospitality stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $10.46, for a total value of $209,200.00. Following the transaction, the director owned 95,354 shares in the company, valued at approximately $997,402.84. The trade was a 17.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Company insiders own 0.90% of the company’s stock.

Hedge Funds Weigh In On DiamondRock Hospitality

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Allworth Financial LP boosted its stake in DiamondRock Hospitality by 146.0% in the 4th quarter. Allworth Financial LP now owns 2,859 shares of the real estate investment trust’s stock worth $26,000 after purchasing an additional 1,697 shares during the period. First Horizon Corp boosted its stake in DiamondRock Hospitality by 54.9% in the 4th quarter. First Horizon Corp now owns 3,214 shares of the real estate investment trust’s stock worth $29,000 after purchasing an additional 1,139 shares during the period. EverSource Wealth Advisors LLC boosted its stake in DiamondRock Hospitality by 77.3% in the 4th quarter. EverSource Wealth Advisors LLC now owns 3,436 shares of the real estate investment trust’s stock worth $31,000 after purchasing an additional 1,498 shares during the period. Danske Bank A S acquired a new position in DiamondRock Hospitality in the 3rd quarter worth approximately $33,000. Finally, Global Retirement Partners LLC boosted its stake in DiamondRock Hospitality by 12,114.7% in the 4th quarter. Global Retirement Partners LLC now owns 4,153 shares of the real estate investment trust’s stock worth $37,000 after purchasing an additional 4,119 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.