DiamondRock Hospitality (NYSE:DRH) Stock Price Breaks Above 200 Day Moving Average Following Analyst Downgrade

DiamondRock Hospitality Company (NYSE:DRH)’s stock price crossed above its 200-day moving average during trading on Monday after Truist Financial raised their price target on the stock from $12.00 to $15.00. The stock has a 200-day moving average of $11.43 and traded as high as $12.70. Truist Financial currently has a buy rating on the stock. DiamondRock Hospitality shares last traded at $12.64, with a volume of 2,212,727 shares traded.

DRH has been the subject of a number of other research reports. Zacks Research upgraded DiamondRock Hospitality from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, August 19th. Wells Fargo & Company increased their price objective on DiamondRock Hospitality from $12.00 to $13.00 and gave the stock an “equal weight” rating in a research note on Thursday, July 23rd. LADENBURG THALM/SH SH raised their target price on DiamondRock Hospitality from $13.00 to $14.00 and gave the company a “buy” rating in a report on Thursday, June 18th. Barclays upped their price target on DiamondRock Hospitality from $12.00 to $14.00 and gave the stock an “equal weight” rating in a report on Thursday, August 27th. Finally, Bank of America increased their price target on DiamondRock Hospitality from $12.50 to $13.00 and gave the company a “buy” rating in a research report on Monday, July 20th. Four research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $12.82.

Hedge Funds Weigh In On DiamondRock Hospitality

Several hedge funds have recently modified their holdings of DRH. EverSource Wealth Advisors LLC grew its holdings in shares of DiamondRock Hospitality by 77.3% in the fourth quarter. EverSource Wealth Advisors LLC now owns 3,436 shares of the real estate investment trust’s stock valued at $31,000 after acquiring an additional 1,498 shares in the last quarter. Gallacher Capital Management LLC lifted its holdings in DiamondRock Hospitality by 5.8% during the first quarter. Gallacher Capital Management LLC now owns 27,509 shares of the real estate investment trust’s stock worth $258,000 after acquiring an additional 1,504 shares during the period. Ancora Advisors LLC boosted its position in DiamondRock Hospitality by 0.3% in the second quarter. Ancora Advisors LLC now owns 496,340 shares of the real estate investment trust’s stock worth $6,045,000 after purchasing an additional 1,630 shares during the last quarter. Sequoia Financial Advisors LLC boosted its position in DiamondRock Hospitality by 15.8% in the first quarter. Sequoia Financial Advisors LLC now owns 16,470 shares of the real estate investment trust’s stock worth $154,000 after purchasing an additional 2,243 shares during the last quarter. Finally, Nilsine Partners LLC grew its stake in DiamondRock Hospitality by 3.2% in the 2nd quarter. Nilsine Partners LLC now owns 84,082 shares of the real estate investment trust’s stock valued at $1,024,000 after purchasing an additional 2,625 shares during the period.

DiamondRock Hospitality Price Performance

The stock has a market cap of $2.54 billion, a P/E ratio of 49.58, a P/E/G ratio of 4.50 and a beta of 0.97. The business has a 50 day simple moving average of $12.52 and a 200-day simple moving average of $11.45. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.64 and a current ratio of 1.64.

DiamondRock Hospitality (NYSE:DRH) last released its earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 EPS for the quarter, topping analysts’ consensus estimates of $0.22 by $0.22. The company had revenue of $318.29 million for the quarter, compared to analysts’ expectations of $314.98 million. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The business’s revenue for the quarter was up 4.1% compared to the same quarter last year. During the same period in the previous year, the business posted $0.35 EPS. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. On average, sell-side analysts forecast that DiamondRock Hospitality Company will post 0.96 EPS for the current year.

DiamondRock Hospitality Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 30th will be paid a $0.11 dividend. The ex-dividend date is Wednesday, September 30th. This is a boost from DiamondRock Hospitality’s previous quarterly dividend of $0.09. This represents a $0.44 annualized dividend and a dividend yield of 3.5%. DiamondRock Hospitality’s dividend payout ratio is presently 60.27%.

DiamondRock Hospitality Company Profile

DiamondRock Hospitality Company (NYSE: DRH) is a self-advised real estate investment trust that owns a portfolio of hotels and resorts in the United States. The company focuses on lodging properties in locations that appeal to business and leisure travelers, including gateway cities, destination resorts and other high-demand markets.

DiamondRock’s properties operate under a combination of nationally recognized hotel brands and independent or company-developed concepts. Its portfolio includes full-service hotels, lifestyle properties and resort accommodations, with services such as guest rooms, restaurants, meeting and event facilities, recreational amenities and other hospitality offerings.

The company was formed in 2004 through a spin-off from Marriott International and is headquartered in Bethesda, Maryland.