DiamondRock Hospitality Company [NYSE: DRH] gained 1.49% on the last trading session, reaching $9.54 price per share at the time. The company report on July 2, 2021 that DiamondRock Hospitality Company Completes Disposition Of The 725-Room Lexington Hotel In New York City.
DiamondRock Hospitality Company (the “Company”) (NYSE: DRH) announced that it completed the disposition of the 725-room Lexington Hotel in New York City on June 30, 2021 for $185.3 million. Including the Company’s projected capital expenditures, the sale price represents a 14.2x multiple on 2019 Hotel EBITDA and a 5.4% capitalization rate on 2019 Hotel net operating income. The Company intends to redeploy the net proceeds from the sale to acquire high-growth experiential resort and urban lifestyle hotels aligned with its investment strategy.
“We are pleased to announce the closing of this transaction, which right-sizes our portfolio’s exposure to New York City,” said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company. “This disposition also provides DiamondRock with significant investment capacity for on-strategy acquisitions.”.
DiamondRock Hospitality Company represents 211.67 million in outstanding shares, while the company has a total market value of $1.93 billion with the latest information. DRH stock price has been found in the range of $9.26 to $9.54.
If compared to the average trading volume of 1.66M shares, DRH reached a trading volume of 1729581 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 $10.33 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 2.80. 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.
Raymond James have made an estimate for DiamondRock Hospitality Company shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on January 12, 2021. While these analysts kept the previous recommendation, Citigroup raised their target price from $4.50 to $9. The new note on the price target was released on December 15, 2020, representing the official price target for DiamondRock Hospitality Company stock. Previously, the target price had yet another raise from $7 to $10, while Wells Fargo kept a Overweight rating on DRH stock.
The Average True Range (ATR) for DiamondRock Hospitality Company is set at 0.33, with the Price to Sales ratio for DRH stock in the period of the last 12 months amounting to 9.54. The Price to Book ratio for the last quarter was 1.31, with the Price to Cash per share for the same quarter was set at 0.49.
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 -1.65. With this latest performance, DRH shares dropped by -7.65% in over the last four-week period, additionally plugging by 11.32% over the last 6 months – not to mention a rise of 83.11% 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 44.50, with the RSI for the last a single of trading hit 45.02, and the three-weeks RSI is set at 45.34 for DiamondRock Hospitality Company [DRH]. The present Moving Average for the last 50 days of trading for this stock 9.92, while it was recorded at 9.33 for the last single week of trading, and 8.66 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 -98.14 and a Gross Margin at -88.20. DiamondRock Hospitality Company’s Net Margin is presently recorded at -131.68.
Return on Total Capital for DRH is now -9.82, given the latest momentum, and Return on Invested Capital for the company is -13.41. Return on Equity for this stock declined to -21.77, with Return on Assets sitting at -12.00. When it comes to the capital structure of this company, DiamondRock Hospitality Company [DRH] has a Total Debt to Total Equity ratio set at 67.42. Additionally, DRH Total Debt to Total Capital is recorded at 40.27, with Total Debt to Total Assets ending up at 36.66. Long-Term Debt to Equity for the company is recorded at 66.53, with the Long-Term Debt to Total Capital now at 39.74.
Reflecting on the efficiency of the workforce at the company, DiamondRock Hospitality Company [DRH] managed to generate an average of -$13,599,138 per employee. Receivables Turnover for the company is 3.73 with a Total Asset Turnover recorded at a value of 0.09.
DiamondRock Hospitality Company [DRH]: An earnings per share (EPS) analysis
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 $2,099 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 41,412,848, which is approximately 5.904% of the company’s market cap and around 2.20% of the total institutional ownership; VANGUARD GROUP INC, holding 32,313,842 shares of the stock with an approximate value of $308.27 million in DRH stocks shares; and INVESCO LTD., currently with $138.07 million in DRH stock with ownership of nearly -18.394% 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 104 institutional holders increased their position in DiamondRock Hospitality Company [NYSE:DRH] by around 22,002,303 shares. Additionally, 101 investors decreased positions by around 21,007,006 shares, while 28 investors held positions by with 177,040,908 shares. The mentioned changes placed institutional holdings at 220,050,217 shares, according to the latest SEC report filing. DRH stock had 23 new institutional investments in for a total of 4,712,046 shares, while 30 institutional investors sold positions of 4,730,201 shares during the same period.