DiamondRock Hospitality Company [NYSE: DRH] gained 3.49% or 0.31 points to close at $9.19 with a heavy trading volume of 3473893 shares. The company report on July 16, 2021 that DiamondRock Hospitality Company Unveils Property-Wide Transformation Of The Lodge At Sonoma Resort, An Autograph Collection Hotel.
DiamondRock Hospitality Company (the “Company”) (NYSE: DRH) announced that it has completed the repositioning of The Lodge at Sonoma and the resort joined Marriott International, Inc.’s Autograph Collection on July 1, 2021.
“The extensive repositioning and subsequent association with the Autograph Collection makes The Lodge at Sonoma one of the premier resorts in Northern California,” said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company. “DiamondRock was the first lodging REIT to invest in California’s wine country when it acquired The Lodge at Sonoma in 2004 and the resort has been an outstanding investment for the Company. We project our $10 million transformation will generate a return on investment of over 25% and our undepreciated investment basis of approximately $380,000 per key is a fraction of market value and replacement cost. Importantly, the investment also represents another milestone in DiamondRock’s strategy to curate a collection of exceptional urban lifestyle and experiential resort hotels. Later this year, we will complete the repositioning of our resort at Vail Mountain in Colorado and our urban lifestyle hotel in the Cherry Creek submarket of Denver as Luxury Collection hotels. In addition, the conversion of the Barbary Beach House Key West to a Margaritaville Resort is underway and we are reviewing several additional repositioning opportunities to enhance expected future growth.”.
It opened the trading session at $9.01, the shares rose to $9.50 and dropped to $8.99, the range by which the price of stock traded the whole day. The daily chart for DRH points out that the company has recorded 1.66% gains over the past six months. However, it is still -107.45% lower than its most recent low trading price.
If we look at the average trading volume of 1.66M shares, DRH reached to a volume of 3473893 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 0.40, with the Price to Sales ratio for DRH stock in the period of the last 12 months amounting to 9.84. The Price to Book ratio for the last quarter was 1.27, with the Price to Cash per share for the same quarter was set at 0.46.
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 -2.23. With this latest performance, DRH shares dropped by -9.90% in over the last four-week period, additionally plugging by 1.66% over the last 6 months – not to mention a rise of 79.49% 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 44.86, with the RSI for the last a single of trading hit 46.57, and the three-weeks RSI is set at 44.81 for DiamondRock Hospitality Company [DRH]. The present Moving Average for the last 50 days of trading for this stock 9.78, while it was recorded at 9.00 for the last single week of trading, and 8.80 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 $2,022 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 $296.96 million in DRH stocks shares; and INVESCO LTD., currently with $133.0 million in DRH stock with ownership of nearly -18.394% of the company’s market capitalization.
105 institutional holders increased their position in DiamondRock Hospitality Company [NYSE:DRH] by around 22,010,810 shares. Additionally, 97 investors decreased positions by around 19,579,064 shares, while 27 investors held positions by with 178,461,707 shares. The mentioned changes placed institutional holdings at 220,051,581 shares, according to the latest SEC report filing. DRH stock had 22 new institutional investments in for a total of 4,711,946 shares, while 27 institutional investors sold positions of 3,362,430 shares during the same period.