Market Analysts see DiamondRock Hospitality Company [DRH] falling to $10. Time to buy?

DiamondRock Hospitality Company [NYSE: DRH] loss -6.44% or -0.57 points to close at $8.28 with a heavy trading volume of 2693862 shares. The company report on September 1, 2022 that DIAMONDROCK HOSPITALITY DECLARES DIVIDEND OF $0.03 PER SHARE.

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DiamondRock Hospitality Company (the “Company”) (NYSE: DRH) today announced that its Board of Directors has declared a quarterly dividend of $0. 515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock. The dividend is payable on September 30, 2022 to shareholders of record as of September 16, 2022.

As previously announced in the Company’s second quarter 2022 earnings release, the Company’s Board of Directors declared a quarterly cash dividend of $0.03 per common share. The dividend is payable on October 12, 2022 to shareholders of record as of September 30, 2022.

It opened the trading session at $8.89, the shares rose to $8.93 and dropped to $8.255, the range by which the price of stock traded the whole day. The daily chart for DRH points out that the company has recorded -15.94% loss over the past six months. However, it is still -7.81% lower than its most recent low trading price.

If we look at the average trading volume of 1.75M shares, DRH reached to a volume of 2693862 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 $10.70 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 2.60. 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.

Wells Fargo have made an estimate for DiamondRock Hospitality Company shares, keeping their opinion on the stock as Equal Weight, with their previous recommendation back on August 29, 2022. While these analysts kept the previous recommendation, Evercore ISI raised their target price to In-line. The new note on the price target was released on July 11, 2022, representing the official price target for DiamondRock Hospitality Company stock. On October 19, 2021, analysts increased their price target for DRH shares from 10 to 10.50.

The Average True Range (ATR) for DiamondRock Hospitality Company is set at 0.32, with the Price to Sales ratio for DRH stock in the period of the last 12 months amounting to 2.08. The Price to Book ratio for the last quarter was 1.12, with the Price to Cash per share for the same quarter was set at 0.34. Price to Free Cash Flow for DRH in the course of the last twelve months was 21.64.

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 -9.21. With this latest performance, DRH shares dropped by -10.78% in over the last four-week period, additionally sinking by -15.94% over the last 6 months – not to mention a drop of -8.51% 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 35.86, with the RSI for the last a single of trading hit 30.64, and the three-weeks RSI is set at 39.38 for DiamondRock Hospitality Company [DRH]. The present Moving Average for the last 50 days of trading for this stock 9.07, while it was recorded at 8.81 for the last single week of trading, and 9.45 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 -3.95 and a Gross Margin at +10.82. DiamondRock Hospitality Company’s Net Margin is presently recorded at -34.31.

Return on Equity for this stock declined to -12.06, with Return on Assets sitting at -6.37.

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 $1,815 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 40,132,606, which is approximately -0.448% of the company’s market cap and around 0.40% of the total institutional ownership; VANGUARD GROUP INC, holding 35,807,961 shares of the stock with an approximate value of $296.49 million in DRH stocks shares; and STATE STREET CORP, currently with $112.63 million in DRH stock with ownership of nearly 0.477% 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 132 institutional holders increased their position in DiamondRock Hospitality Company [NYSE:DRH] by around 14,251,050 shares. Additionally, 101 investors decreased positions by around 11,987,907 shares, while 29 investors held positions by with 193,023,894 shares. The mentioned changes placed institutional holdings at 219,262,851 shares, according to the latest SEC report filing. DRH stock had 44 new institutional investments in for a total of 3,975,153 shares, while 23 institutional investors sold positions of 3,263,178 shares during the same period.


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