DiamondRock Hospitality Company [DRH] Stock trading around $9.15 per share: What’s Next?

DiamondRock Hospitality Company [NYSE: DRH] traded at a high on 10/25/22, posting a 2.35 gain after which it closed the day’ session at $9.15. The company report on October 20, 2022 that DIAMONDROCK HOSPITALITY ANNOUNCES UPDATE ON RECENT OPERATIONS.

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DiamondRock Hospitality Company (the “Company”) (NYSE: DRH) today provided an update on September 2022 operations, showing continued strong RevPAR growth both for the month and the third quarter.  September RevPAR grew 43.5% and 9.8% compared to 2021 and 2019, respectively.  Comparable total revenues for September were $93.4 million, an increase of 12.5% compared to 2019.  For the third quarter, RevPAR grew 8.7% and total revenues increased 11.7% compared to 2019.

“DiamondRock is pleased to announce another record-setting quarter as the industry bounces back from the pandemic and consumers continue to spend on travel and experiences,” said Mark W. Brugger, President and Chief Executive Officer of the Company.  “Our unique portfolio’s ability to deliver outstanding operating results, along with the enhanced balance sheet strength from the Company’s recently completed $1.2 billion bank facility, position DiamondRock to continue to be a leader in the lodging sector.”.

The results of the trading session contributed to over 5784065 shares changing hands. Over the past one week, the price volatility of DiamondRock Hospitality Company stands at 3.14% while the volatility over the past one month is 3.77%.

The market cap for DRH stock reached $1.86 billion, with 212.83 million shares outstanding and 205.98 million shares in the current float. Compared to the average trading volume of 2.02M shares, DRH reached a trading volume of 5784065 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say 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 $10.78 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 2.70. 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.

Evercore ISI have made an estimate for DiamondRock Hospitality Company shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on October 18, 2022. While these analysts kept the previous recommendation, Wells Fargo dropped their target price from $11 to $10. The new note on the price target was released on August 29, 2022, representing the official price target for DiamondRock Hospitality Company stock. Previously, the target price had yet another raise to $10, while Evercore ISI analysts kept a In-line rating on DRH stock.

The Average True Range (ATR) for DiamondRock Hospitality Company is set at 0.35, with the Price to Sales ratio for DRH stock in the period of the last 12 months amounting to 2.20. The Price to Book ratio for the last quarter was 1.24, with the Price to Cash per share for the same quarter was set at 0.35. Price to Free Cash Flow for DRH in the course of the last twelve months was 22.84.

How has DRH stock performed recently?

DiamondRock Hospitality Company [DRH] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.57. With this latest performance, DRH shares gained by 25.17% in over the last four-week period, additionally sinking by -13.02% over the last 6 months – not to mention a drop of -3.68% 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 66.54, with the RSI for the last a single of trading hit 75.58, and the three-weeks RSI is set at 60.47 for DiamondRock Hospitality Company [DRH]. The present Moving Average for the last 50 days of trading for this stock 8.60, while it was recorded at 8.91 for the last single week of trading, and 9.30 for the last 200 days.

DiamondRock Hospitality Company [DRH]: Deeper insight into the fundamentals

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.

Earnings analysis for DiamondRock Hospitality Company [DRH]

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%.

Insider trade positions for DiamondRock Hospitality Company [DRH]

There are presently around $2,007 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 $327.64 million in DRH stocks shares; and STATE STREET CORP, currently with $124.47 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 November and at the time of the November reporting period, where 130 institutional holders increased their position in DiamondRock Hospitality Company [NYSE:DRH] by around 14,274,978 shares. Additionally, 100 investors decreased positions by around 11,971,437 shares, while 31 investors held positions by with 193,142,508 shares. The mentioned changes placed institutional holdings at 219,388,923 shares, according to the latest SEC report filing. DRH stock had 41 new institutional investments in for a total of 3,966,431 shares, while 20 institutional investors sold positions of 3,251,449 shares during the same period.


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