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

DiamondRock Hospitality Company (NYSE:DRH)’s stock price hit a new 52-week high during trading on Tuesday . The company traded as high as $12.45 and last traded at $12.25, with a volume of 1832915 shares traded. The stock had previously closed at $12.31.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on DRH. Citigroup boosted their price target on shares of DiamondRock Hospitality from $9.50 to $11.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. Morgan Stanley boosted their target price on DiamondRock Hospitality from $9.50 to $9.60 and gave the company an “equal weight” rating in a research note on Tuesday, May 12th. Wells Fargo & Company raised their price target on DiamondRock Hospitality from $11.00 to $12.00 and gave the stock an “equal weight” rating in a research report on Monday, June 1st. Truist Financial lifted their price target on DiamondRock Hospitality from $11.00 to $12.00 and gave the stock a “buy” rating in a research note on Tuesday, May 26th. Finally, Barclays boosted their price objective on DiamondRock Hospitality from $10.00 to $12.00 and gave the company an “equal weight” rating in a research report on Monday, June 1st. Three investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $11.65.

DiamondRock Hospitality Price Performance

The business’s 50-day simple moving average is $10.92 and its 200-day simple moving average is $9.95. The stock has a market cap of $2.51 billion, a PE ratio of 49.00, a PEG ratio of 4.50 and a beta of 1.00. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 0.70.

DiamondRock Hospitality Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 14th. Investors of record on Tuesday, June 30th will be paid a $0.09 dividend. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $0.36 annualized dividend and a dividend yield of 2.9%. DiamondRock Hospitality’s dividend payout ratio (DPR) is presently 76.60%.

Insider Buying and Selling

In other DiamondRock Hospitality news, Director Michael A. Hartmeier sold 20,000 shares of the 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 completion of the sale, the director owned 95,354 shares in the company, valued at approximately $997,402.84. This trade represents a 17.34% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Kathleen Merrill sold 20,000 shares of the business’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $11.88, for a total value of $237,600.00. Following the transaction, the director directly owned 84,335 shares in the company, valued at $1,001,899.80. This trade represents a 19.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.90% of the company’s stock.

Institutional Investors Weigh In On DiamondRock Hospitality

Institutional investors and hedge funds have recently modified their holdings of the stock. Allworth Financial LP increased its position in shares of DiamondRock Hospitality by 146.0% during the fourth quarter. Allworth Financial LP now owns 2,859 shares of the real estate investment trust’s stock valued at $26,000 after buying an additional 1,697 shares during the period. First Horizon Corp boosted its position in DiamondRock Hospitality by 54.9% during the 4th quarter. First Horizon Corp now owns 3,214 shares of the real estate investment trust’s stock valued at $29,000 after acquiring an additional 1,139 shares in the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of DiamondRock Hospitality by 77.3% during the 4th quarter. EverSource Wealth Advisors LLC now owns 3,436 shares of the real estate investment trust’s stock worth $31,000 after acquiring an additional 1,498 shares during the period. Global Retirement Partners LLC grew its holdings in shares of DiamondRock Hospitality by 12,114.7% during the 4th quarter. Global Retirement Partners LLC now owns 4,153 shares of the real estate investment trust’s stock worth $37,000 after acquiring an additional 4,119 shares during the period. Finally, Danske Bank A S bought a new position in shares of DiamondRock Hospitality in the 3rd quarter worth approximately $33,000.

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.