DiamondRock Hospitality (NYSE:DRH) Stock Rating Upgraded by Bank of America

Bank of America upgraded shares of DiamondRock Hospitality (NYSE:DRH) from an underperform rating to a buy rating in a report released on Wednesday, MarketBeat Ratings reports. They currently have $9.50 price objective on the real estate investment trust’s stock.

Several other equities research analysts also recently commented on the company. Morgan Stanley cut their price objective on DiamondRock Hospitality from $9.00 to $7.00 and set an “equal weight” rating for the company in a report on Tuesday, April 22nd. Stifel Nicolaus lowered their price objective on shares of DiamondRock Hospitality from $9.75 to $8.00 and set a “hold” rating on the stock in a research note on Wednesday, April 16th. Evercore ISI cut their target price on shares of DiamondRock Hospitality from $10.00 to $9.00 and set an “in-line” rating for the company in a research note on Monday, April 28th. Finally, Wells Fargo & Company reduced their price target on DiamondRock Hospitality from $10.50 to $9.50 and set an “equal weight” rating for the company in a report on Tuesday, February 18th. Six analysts have rated the stock with a hold rating and two have given a buy rating to the company. According to MarketBeat.com, DiamondRock Hospitality presently has an average rating of “Hold” and a consensus price target of $9.04.

DiamondRock Hospitality Stock Up 3.0 %

Shares of DRH stock opened at $7.63 on Wednesday. The firm’s fifty day moving average price is $7.54 and its two-hundred day moving average price is $8.50. The company has a current ratio of 1.73, a quick ratio of 1.73 and a debt-to-equity ratio of 0.66. DiamondRock Hospitality has a 1 year low of $6.19 and a 1 year high of $10.00. The firm has a market capitalization of $1.59 billion, a P/E ratio of 27.23, a PEG ratio of 2.06 and a beta of 1.38.

DiamondRock Hospitality (NYSE:DRH) last released its earnings results on Thursday, May 1st. The real estate investment trust reported $0.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.17 by $0.02. DiamondRock Hospitality had a return on equity of 4.25% and a net margin of 6.30%. The business had revenue of $254.85 million for the quarter, compared to the consensus estimate of $256.47 million. During the same quarter in the previous year, the business earned $0.17 earnings per share. DiamondRock Hospitality’s quarterly revenue was up .5% on a year-over-year basis. On average, equities analysts predict that DiamondRock Hospitality will post 0.96 EPS for the current fiscal year.

DiamondRock Hospitality Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, April 11th. Stockholders of record on Friday, March 28th were paid a dividend of $0.08 per share. The ex-dividend date was Friday, March 28th. This represents a $0.32 dividend on an annualized basis and a dividend yield of 4.20%. This is a positive change from DiamondRock Hospitality’s previous quarterly dividend of $0.03. DiamondRock Hospitality’s dividend payout ratio (DPR) is 188.24%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DRH. Barclays PLC boosted its position in shares of DiamondRock Hospitality by 37.6% in the third quarter. Barclays PLC now owns 368,616 shares of the real estate investment trust’s stock valued at $3,219,000 after acquiring an additional 100,805 shares during the period. KBC Group NV raised its stake in DiamondRock Hospitality by 55.9% in the 4th quarter. KBC Group NV now owns 10,436 shares of the real estate investment trust’s stock worth $94,000 after purchasing an additional 3,744 shares in the last quarter. Vert Asset Management LLC boosted its holdings in DiamondRock Hospitality by 2.1% in the 4th quarter. Vert Asset Management LLC now owns 82,570 shares of the real estate investment trust’s stock valued at $746,000 after purchasing an additional 1,729 shares during the period. abrdn plc grew its position in shares of DiamondRock Hospitality by 53.5% during the 4th quarter. abrdn plc now owns 69,071 shares of the real estate investment trust’s stock worth $633,000 after purchasing an additional 24,070 shares in the last quarter. Finally, Choreo LLC increased its holdings in shares of DiamondRock Hospitality by 55.1% during the fourth quarter. Choreo LLC now owns 15,553 shares of the real estate investment trust’s stock worth $142,000 after purchasing an additional 5,523 shares during the period.

DiamondRock Hospitality Company Profile

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels with over 9,700 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment.