DiamondRock Hospitality (DRH) Rating Lowered to Market Perform at Wells Fargo & Co

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Wells Fargo & Co downgraded shares of DiamondRock Hospitality (NYSE:DRH) from an outperform rating to a market perform rating in a research report report published on Wednesday, MarketBeat Ratings reports. The brokerage currently has $11.00 price target on the real estate investment trust’s stock.

A number of other analysts have also recently weighed in on DRH. Zacks Investment Research raised shares of DiamondRock Hospitality from a hold rating to a buy rating and set a $14.00 target price on the stock in a report on Tuesday, July 10th. Citigroup increased their target price on shares of DiamondRock Hospitality from $11.00 to $12.00 and gave the stock a neutral rating in a report on Wednesday, August 8th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and four have assigned a buy rating to the company’s stock. The company currently has a consensus rating of Hold and an average target price of $11.91.

Shares of NYSE:DRH traded down $0.02 on Wednesday, reaching $10.43. 226,975 shares of the company’s stock were exchanged, compared to its average volume of 2,627,758. The stock has a market capitalization of $2.18 billion, a price-to-earnings ratio of 10.45, a price-to-earnings-growth ratio of 3.11 and a beta of 1.38. DiamondRock Hospitality has a fifty-two week low of $9.87 and a fifty-two week high of $12.99. The company has a debt-to-equity ratio of 0.49, a quick ratio of 2.43 and a current ratio of 2.43.

DiamondRock Hospitality (NYSE:DRH) last issued its earnings results on Thursday, August 2nd. The real estate investment trust reported $0.14 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.32 by ($0.18). The business had revenue of $236.70 million for the quarter, compared to analyst estimates of $241.52 million. DiamondRock Hospitality had a return on equity of 4.26% and a net margin of 9.26%. The firm’s revenue for the quarter was up 2.1% on a year-over-year basis. During the same period last year, the company posted $0.32 earnings per share. Sell-side analysts expect that DiamondRock Hospitality will post 1.01 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Friday, October 12th. Stockholders of record on Friday, September 28th were given a dividend of $0.125 per share. The ex-dividend date was Thursday, September 27th. This represents a $0.50 annualized dividend and a dividend yield of 4.79%. DiamondRock Hospitality’s dividend payout ratio is currently 50.00%.

Several institutional investors have recently added to or reduced their stakes in the company. Sumitomo Mitsui Trust Holdings Inc. grew its position in shares of DiamondRock Hospitality by 2.7% during the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 201,011 shares of the real estate investment trust’s stock worth $2,468,000 after acquiring an additional 5,247 shares during the last quarter. Sei Investments Co. grew its position in shares of DiamondRock Hospitality by 3.3% during the second quarter. Sei Investments Co. now owns 167,429 shares of the real estate investment trust’s stock worth $2,056,000 after acquiring an additional 5,291 shares during the last quarter. Foundry Partners LLC grew its position in shares of DiamondRock Hospitality by 19.3% during the second quarter. Foundry Partners LLC now owns 36,685 shares of the real estate investment trust’s stock worth $450,000 after acquiring an additional 5,925 shares during the last quarter. Rhumbline Advisers grew its position in shares of DiamondRock Hospitality by 1.3% during the second quarter. Rhumbline Advisers now owns 543,500 shares of the real estate investment trust’s stock worth $6,674,000 after acquiring an additional 6,786 shares during the last quarter. Finally, Dupont Capital Management Corp grew its position in shares of DiamondRock Hospitality by 12.6% during the second quarter. Dupont Capital Management Corp now owns 64,940 shares of the real estate investment trust’s stock worth $797,000 after acquiring an additional 7,249 shares during the last quarter.

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 top gateway markets and destination resort locations. The Company owns 30 premium quality hotels with over 9,900 rooms. The Company has strategically positioned its hotels to be operated both under leading global brand families such as Hilton and Marriott as well as unique boutique hotels in the lifestyle segment.

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Analyst Recommendations for DiamondRock Hospitality (NYSE:DRH)

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