DiamondRock Hospitality Company [DRH] Is Currently -4.25 below its 200 Period Moving Avg: What Dose This Mean?

DiamondRock Hospitality Company [NYSE: DRH] stock went on a downward path that fall over -4.25% on Friday, amounting to a one-week price decrease of less than -8.99%. The company report on August 20, 2020 that DiamondRock Hospitality Company Announces Pricing Of Public Offering Of Its 8.250% Series A Cumulative Redeemable Preferred Stock.

DiamondRock Hospitality Company (the “Company”) (NYSE: DRH) today announced it has priced an underwritten public offering of 4,400,000 shares of its 8.250% Series A Cumulative Redeemable Preferred Stock (“Series A Preferred Stock”), liquidation preference $25.00 per share. Gross proceeds to the Company will be approximately $110,000,000 before deducting underwriting discounts and offering expenses. The offering is expected to close on August 31, 2020, subject to customary closing conditions. As a part of the offering, the Company granted the underwriters a 30-day option to purchase up to an additional 600,000 shares of Series A Preferred Stock solely to cover over-allotments, if any. The Company has applied to list the Series A Preferred Stock on the New York Stock Exchange under the symbol “DRH Pr A.”.

The Company intends to use the net proceeds of this offering for general corporate purposes, which may include the repayment of amounts outstanding under its senior unsecured credit facility, capital expenditures, the improvement of properties in its portfolio, working capital and other general purposes.

Over the last 12 months, DRH stock dropped by -47.46%. The one-year DiamondRock Hospitality Company stock forecast points to a potential upside of 13.44. The average equity rating for DRH stock is currently 3.20, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $1.03 billion, with 200.80 million shares outstanding and 196.00 million shares in the current float. Compared to the average trading volume of 3.44M shares, DRH stock reached a trading volume of 1973152 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on DiamondRock Hospitality Company [DRH]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for DRH shares is $5.73 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on DRH stock is a recommendation set at 3.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

SunTrust have made an estimate for DiamondRock Hospitality Company shares, keeping their opinion on the stock as Sell, with their previous recommendation back on July 24, 2020. The new note on the price target was released on June 22, 2020, representing the official price target for DiamondRock Hospitality Company stock. Previously, the target price had yet another drop from $9 to $5, while Wells Fargo kept a Equal Weight rating on DRH stock. On April 07, 2020, analysts decreased their price target for DRH shares from 10.50 to 4.

The Average True Range (ATR) for DiamondRock Hospitality Company is set at 0.28, with the Price to Sales ratio for DRH stock in the period of the last 12 months amounting to 1.55. The Price to Book ratio for the last quarter was 0.55, with the Price to Cash per share for the same quarter was set at 0.42.

DRH Stock Performance Analysis:

DiamondRock Hospitality Company [DRH] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.99. With this latest performance, DRH shares dropped by -1.20% in over the last four-week period, additionally sinking by -51.94% over the last 6 months – not to mention a drop of -47.46% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for DRH stock in for the last two-week period is set at 44.78, with the RSI for the last a single of trading hit 41.33, and the three-weeks RSI is set at 45.90 for DiamondRock Hospitality Company [DRH]. The present Moving Average for the last 50 days of trading for this stock 5.27, while it was recorded at 5.12 for the last single week of trading, and 7.35 for the last 200 days.

Insight into DiamondRock Hospitality Company Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and DiamondRock Hospitality Company [DRH] shares currently have an operating margin of +7.70 and a Gross Margin at +30.91. DiamondRock Hospitality Company’s Net Margin is presently recorded at +19.55.

Return on Total Capital for DRH is now 2.41, given the latest momentum, and Return on Invested Capital for the company is 6.24. Return on Equity for this stock inclined to 9.66, with Return on Assets sitting at 5.54. When it comes to the capital structure of this company, DiamondRock Hospitality Company [DRH] has a Total Debt to Total Equity ratio set at 62.42. Additionally, DRH Total Debt to Total Capital is recorded at 38.43, with Total Debt to Total Assets ending up at 34.85. Long-Term Debt to Equity for the company is recorded at 58.63, with the Long-Term Debt to Total Capital now at 36.10.

Reflecting on the efficiency of the workforce at the company, DiamondRock Hospitality Company [DRH] managed to generate an average of $5,914,677 per employee. Receivables Turnover for the company is 10.53 with a Total Asset Turnover recorded at a value of 0.28.

DRH Stock EPS

With the latest financial reports released by the company, DiamondRock Hospitality Company posted 0.07/share EPS, while the average EPS was predicted by analysts to be reported at 0.11/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -36.40%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for DRH. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for DiamondRock Hospitality Company go to -9.50%.

DiamondRock Hospitality Company [DRH] Insider Position Details

There are presently around $1,015 million, or 96.30% of DRH stock, in the hands of institutional investors. The top three institutional holders of DRH stocks are: BLACKROCK INC. with ownership of 37,110,983, which is approximately -1.877% of the company’s market cap and around 1.80% of the total institutional ownership; VANGUARD GROUP INC, holding 31,393,124 shares of the stock with an approximate value of $155.71 million in DRH stocks shares; and FMR LLC, currently with $58.69 million in DRH stock with ownership of nearly 3.055% of the company’s market capitalization.

Positions in DiamondRock Hospitality Company stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 113 institutional holders increased their position in DiamondRock Hospitality Company [NYSE:DRH] by around 31,812,765 shares. Additionally, 124 investors decreased positions by around 38,213,534 shares, while 20 investors held positions by with 134,611,388 shares. The mentioned changes placed institutional holdings at 204,637,687 shares, according to the latest SEC report filing. DRH stock had 36 new institutional investments in for a total of 11,619,405 shares, while 38 institutional investors sold positions of 3,140,383 shares during the same period.

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