Sunday, September 20, 2020

DiamondRock Hospitality Company [DRH] fell -48.01% so far this year. What now?

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DiamondRock Hospitality Company [NYSE: DRH] gained 8.68% or 0.46 points to close at $5.76 with a heavy trading volume of 2155668 shares. The company report on September 14, 2020 that DiamondRock Hospitality Declares Dividend On 8.250% Series A Cumulative Redeemable Preferred Stock.

DiamondRock Hospitality Company (the “Company”) (NYSE: DRH) today announced that its Board of Directors has declared a dividend of $0.1776 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock. The dividend is payable on September 30, 2020 to shareholders of record as of September 20, 2020. This first dividend on the Series A Cumulative Redeemable Preferred Stock will be a pro rata dividend from, and including, the original issue date to, and including, September 30, 2020.

About the Company.

It opened the trading session at $5.39, the shares rose to $5.88 and dropped to $5.37, the range by which the price of stock traded the whole day. The daily chart for DRH points out that the company has recorded 49.22% gains over the past six months. However, it is still -193.88% lower than its most recent low trading price.

If we look at the average trading volume of 2.80M shares, DRH reached to a volume of 2155668 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about 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 0.30, with the Price to Sales ratio for DRH stock in the period of the last 12 months amounting to 1.72. The Price to Book ratio for the last quarter was 0.64, with the Price to Cash per share for the same quarter was set at 0.44.

Trading performance analysis for DRH stock

DiamondRock Hospitality Company [DRH] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -0.52. With this latest performance, DRH shares gained by 7.06% in over the last four-week period, additionally plugging by 49.22% over the last 6 months – not to mention a drop of -42.40% 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 58.41, with the RSI for the last a single of trading hit 62.21, and the three-weeks RSI is set at 56.17 for DiamondRock Hospitality Company [DRH]. The present Moving Average for the last 50 days of trading for this stock 5.20, while it was recorded at 5.45 for the last single week of trading, and 7.00 for the last 200 days.

DiamondRock Hospitality Company [DRH]: A deeper dive into fundamental analysis

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.

DiamondRock Hospitality Company [DRH]: An earnings per share (EPS) analysis

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%.

An analysis of insider ownership at DiamondRock Hospitality Company [DRH]

There are presently around $1,179 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 0.40% of the total institutional ownership; VANGUARD GROUP INC, holding 31,393,124 shares of the stock with an approximate value of $180.82 million in DRH stocks shares; and FMR LLC, currently with $68.16 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, 122 investors decreased positions by around 38,164,398 shares, while 21 investors held positions by with 134,706,892 shares. The mentioned changes placed institutional holdings at 204,684,055 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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