Morgan Stanley Issues Pessimistic Forecast for DiamondRock Hospitality (NYSE:DRH) Stock Price

DiamondRock Hospitality (NYSE:DRH) had its price target decreased by analysts at Morgan Stanley from $9.00 to $8.50 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has an “equal weight” rating on the real estate investment trust’s stock. Morgan Stanley’s target price suggests a potential upside of 8.63% from the stock’s previous close.

Other analysts have also recently issued reports about the stock. Weiss Ratings restated a “hold (c)” rating on shares of DiamondRock Hospitality in a report on Wednesday, October 8th. Wells Fargo & Company upgraded shares of DiamondRock Hospitality to a “hold” rating in a report on Friday, October 3rd. One equities research analyst has rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $8.88.

DiamondRock Hospitality Stock Performance

DiamondRock Hospitality stock opened at $7.83 on Wednesday. The firm’s 50 day simple moving average is $8.11 and its 200-day simple moving average is $7.78. The company has a market cap of $1.60 billion, a P/E ratio of 30.10 and a beta of 1.38. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.30 and a quick ratio of 1.30. DiamondRock Hospitality has a fifty-two week low of $6.18 and a fifty-two week high of $10.00.

DiamondRock Hospitality (NYSE:DRH) last posted its quarterly earnings results on Thursday, August 7th. The real estate investment trust reported $0.35 EPS for the quarter, topping the consensus estimate of $0.33 by $0.02. The business had revenue of $305.70 million during the quarter, compared to analysts’ expectations of $303.70 million. DiamondRock Hospitality had a net margin of 6.04% and a return on equity of 4.23%. The firm’s quarterly revenue was down 1.2% compared to the same quarter last year. During the same period last year, the company posted $0.34 earnings per share. DiamondRock Hospitality has set its FY 2025 guidance at 0.960-1.060 EPS. As a group, equities research analysts predict that DiamondRock Hospitality will post 0.96 EPS for the current year.

Institutional Trading of DiamondRock Hospitality

Institutional investors have recently added to or reduced their stakes in the business. Allspring Global Investments Holdings LLC lifted its stake in DiamondRock Hospitality by 54.6% in the first quarter. Allspring Global Investments Holdings LLC now owns 91,486 shares of the real estate investment trust’s stock valued at $705,000 after acquiring an additional 32,298 shares during the last quarter. Cbre Investment Management Listed Real Assets LLC raised its position in shares of DiamondRock Hospitality by 66.7% in the first quarter. Cbre Investment Management Listed Real Assets LLC now owns 2,748,875 shares of the real estate investment trust’s stock valued at $21,221,000 after purchasing an additional 1,100,070 shares during the period. Oppenheimer Asset Management Inc. bought a new position in shares of DiamondRock Hospitality in the first quarter valued at approximately $103,000. Envestnet Asset Management Inc. bought a new position in shares of DiamondRock Hospitality in the first quarter valued at approximately $395,000. Finally, American Century Companies Inc. raised its position in shares of DiamondRock Hospitality by 150.1% in the first quarter. American Century Companies Inc. now owns 132,649 shares of the real estate investment trust’s stock valued at $1,024,000 after purchasing an additional 79,620 shares during the period.

About DiamondRock Hospitality

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.