Zacks Investment Research Lowers Diamondrock Hospitality Company (DRH) to Sell

Zacks Investment Research lowered shares of Diamondrock Hospitality Company (NYSE:DRH) from a hold rating to a sell rating in a research note released on Tuesday.

According to Zacks, “DiamondRock Hospitality Company is a self-advised real estate company that owns, acquires and invests in upper upscale and upscale hotel properties located primarily in North America. To a lesser extent, it may invest, on a selective basis, in premium limited-service and extended-stay hotel properties in urban locations. The Company has a strategic acquisition sourcing relationship with Marriott International. “

A number of other brokerages have also recently issued reports on DRH. ING Group upgraded Diamondrock Hospitality to an outperform rating and set a $13.00 target price for the company in a report on Monday, July 17th. They noted that the move was a valuation call. BidaskClub cut Diamondrock Hospitality from a hold rating to a sell rating in a report on Friday, July 28th. Canaccord Genuity reiterated a buy rating and set a $13.00 target price on shares of Diamondrock Hospitality in a report on Monday, August 7th. Raymond James Financial, Inc. upgraded Diamondrock Hospitality from a market perform rating to an outperform rating and set a $13.00 target price for the company in a report on Friday, July 14th. Finally, UBS AG upgraded Diamondrock Hospitality from a market perform rating to an outperform rating in a report on Friday, July 14th. Three analysts have rated the stock with a sell rating, five have issued a hold rating and seven have issued a buy rating to the company. The stock currently has an average rating of Hold and a consensus price target of $12.00.

Diamondrock Hospitality (DRH) traded up $0.07 during trading hours on Tuesday, hitting $10.95. The company had a trading volume of 1,052,021 shares, compared to its average volume of 2,212,453. The firm has a market cap of $2.20 billion, a price-to-earnings ratio of 11.00, a price-to-earnings-growth ratio of 2.23 and a beta of 1.33. The company has a current ratio of 2.45, a quick ratio of 2.45 and a debt-to-equity ratio of 0.51.

Diamondrock Hospitality (NYSE:DRH) last issued its earnings results on Monday, August 7th. The real estate investment trust reported $0.32 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.31 by $0.01. Diamondrock Hospitality had a return on equity of 5.41% and a net margin of 11.47%. The business had revenue of $243.30 million during the quarter, compared to analysts’ expectations of $240.73 million. During the same quarter in the previous year, the business earned $0.31 EPS. The company’s revenue for the quarter was up 1.2% on a year-over-year basis. sell-side analysts expect that Diamondrock Hospitality will post 0.99 EPS for the current fiscal year.

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The business also recently declared a quarterly dividend, which was paid on Thursday, October 12th. Shareholders of record on Friday, September 29th were issued a $0.125 dividend. This represents a $0.50 dividend on an annualized basis and a yield of 4.57%. The ex-dividend date of this dividend was Thursday, September 28th. Diamondrock Hospitality’s dividend payout ratio is presently 102.04%.

In other Diamondrock Hospitality news, Director Maureen L. Mcavey sold 6,000 shares of the company’s stock in a transaction that occurred on Monday, August 14th. The stock was sold at an average price of $11.20, for a total value of $67,200.00. Following the completion of the transaction, the director now owns 81,030 shares in the company, valued at approximately $907,536. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 1.10% of the stock is owned by corporate insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DRH. BlackRock Inc. boosted its holdings in Diamondrock Hospitality by 4,611.0% in the 1st quarter. BlackRock Inc. now owns 31,087,897 shares of the real estate investment trust’s stock worth $346,632,000 after acquiring an additional 30,427,991 shares during the period. Bank of New York Mellon Corp boosted its stake in shares of Diamondrock Hospitality by 63.2% during the 2nd quarter. Bank of New York Mellon Corp now owns 5,313,030 shares of the real estate investment trust’s stock valued at $58,177,000 after buying an additional 2,058,356 shares during the last quarter. Vanguard Group Inc. boosted its stake in shares of Diamondrock Hospitality by 5.1% during the 2nd quarter. Vanguard Group Inc. now owns 34,866,908 shares of the real estate investment trust’s stock valued at $381,793,000 after buying an additional 1,694,293 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in shares of Diamondrock Hospitality by 93.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,655,396 shares of the real estate investment trust’s stock valued at $18,457,000 after buying an additional 799,059 shares during the last quarter. Finally, Prudential Financial Inc. boosted its stake in shares of Diamondrock Hospitality by 13.1% during the 2nd quarter. Prudential Financial Inc. now owns 5,809,786 shares of the real estate investment trust’s stock valued at $63,617,000 after buying an additional 671,355 shares during the last quarter.

Diamondrock Hospitality Company Profile

DiamondRock Hospitality Company is a real estate investment trust (REIT). As of December 31, 2016, the Company owned a portfolio of 26 hotels and resorts that contains 9,472 guest rooms located in 17 different markets in North America and the United States Virgin Islands. Its business is to acquire, own, asset manage and renovate hotel properties in the United States.

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