Compass Point Upgrades DiamondRock Hospitality (NYSE:DRH) to “Buy”

Compass Point upgraded shares of DiamondRock Hospitality (NYSE:DRH) from a neutral rating to a buy rating in a report published on Monday morning, MarketBeat Ratings reports. Compass Point currently has $10.00 price target on the real estate investment trust’s stock.

Separately, StockNews.com lowered DiamondRock Hospitality from a hold rating to a sell rating in a report on Friday, August 2nd. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and three have given a buy rating to the company. Based on data from MarketBeat.com, DiamondRock Hospitality currently has a consensus rating of Hold and an average price target of $10.25.

DiamondRock Hospitality Price Performance

NYSE:DRH opened at $8.08 on Monday. The business’s 50-day moving average price is $8.31 and its 200 day moving average price is $8.85. The firm has a market cap of $1.70 billion, a P/E ratio of 22.44, a PEG ratio of 4.75 and a beta of 1.60. DiamondRock Hospitality has a 52-week low of $7.33 and a 52-week high of $9.99. The company has a quick ratio of 2.04, a current ratio of 2.04 and a debt-to-equity ratio of 0.71.

DiamondRock Hospitality (NYSE:DRH) last released its earnings results on Thursday, August 1st. The real estate investment trust reported $0.10 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.22). The firm had revenue of $309.28 million for the quarter, compared to analyst estimates of $301.77 million. DiamondRock Hospitality had a return on equity of 4.31% and a net margin of 6.43%. DiamondRock Hospitality’s revenue was up 6.2% on a year-over-year basis. During the same period in the previous year, the firm earned $0.32 earnings per share. As a group, sell-side analysts predict that DiamondRock Hospitality will post 0.98 earnings per share for the current fiscal year.

DiamondRock Hospitality Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, July 12th. Investors of record on Friday, June 28th were given a $0.03 dividend. The ex-dividend date was Friday, June 28th. This represents a $0.12 dividend on an annualized basis and a dividend yield of 1.49%. DiamondRock Hospitality’s dividend payout ratio (DPR) is 33.33%.

Hedge Funds Weigh In On DiamondRock Hospitality

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Centersquare Investment Management LLC boosted its position in DiamondRock Hospitality by 40.3% during the 1st quarter. Centersquare Investment Management LLC now owns 6,303,698 shares of the real estate investment trust’s stock worth $56,103,000 after acquiring an additional 1,810,788 shares during the period. Norges Bank acquired a new stake in DiamondRock Hospitality during the 4th quarter worth about $13,301,000. Paralel Advisors LLC acquired a new stake in DiamondRock Hospitality during the 4th quarter worth about $2,352,000. Russell Investments Group Ltd. boosted its position in DiamondRock Hospitality by 88.8% during the 4th quarter. Russell Investments Group Ltd. now owns 469,463 shares of the real estate investment trust’s stock worth $4,408,000 after acquiring an additional 220,847 shares during the period. Finally, Charles Schwab Investment Management Inc. boosted its position in DiamondRock Hospitality by 4.4% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 4,516,452 shares of the real estate investment trust’s stock worth $42,409,000 after acquiring an additional 190,136 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.