DiamondRock Hospitality Company [NYSE: DRH] stock went on an upward path that rose over 3.30% on Tuesday, amounting to a one-week price increase of more than 3.30%. The company report on August 2, 2023 at 8:00 AM that DIAMONDROCK ACQUIRES CHICO HOT SPRINGS RESORT.
Authentic Western Resort Near Yellowstone National Park.
DiamondRock Hospitality Company (the “Company”) (NYSE:DRH) today announced that it has acquired the fee-simple interest in the Chico Hot Springs Resort (the “Resort”), a lifestyle resort in Paradise Valley, Montana and near Yellowstone National Park. The purchase price for the Resort and adjacent ranch (collectively, “Chico”) is $33 million. Chico was acquired from an individual owner-operator and is an independent resort, completely unencumbered by brand and management agreements.
Over the last 12 months, DRH stock dropped by -9.20%. The one-year DiamondRock Hospitality Company stock forecast points to a potential upside of 17.34. The average equity rating for DRH stock is currently 2.50, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $1.74 billion, with 211.67 million shares outstanding and 204.93 million shares in the current float. Compared to the average trading volume of 2.11M shares, DRH stock reached a trading volume of 3871470 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on 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 $9.86 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 2.50. 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 Overweight, with their previous recommendation back on March 30, 2023.
The Average True Range (ATR) for DiamondRock Hospitality Company is set at 0.25, with the Price to Sales ratio for DRH stock in the period of the last 12 months amounting to 1.65. The Price to Book ratio for the last quarter was 1.06, with the Price to Cash per share for the same quarter was set at 0.46. Price to Free Cash Flow for DRH in the course of the last twelve months was 21.75.
DRH Stock Performance Analysis:
DiamondRock Hospitality Company [DRH] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.30. With this latest performance, DRH shares dropped by -4.12% in over the last four-week period, additionally sinking by -6.54% over the last 6 months – not to mention a drop of -9.20% 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 56.22, with the RSI for the last a single of trading hit 60.88, and the three-weeks RSI is set at 53.81 for DiamondRock Hospitality Company [DRH]. The present Moving Average for the last 50 days of trading for this stock 8.00, while it was recorded at 7.81 for the last single week of trading, and 8.38 for the last 200 days.
Insight into DiamondRock Hospitality Company Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and DiamondRock Hospitality Company [DRH] shares currently have an operating margin of +17.72 and a Gross Margin at +27.93. DiamondRock Hospitality Company’s Net Margin is presently recorded at +10.92.
Return on Total Capital for DRH is now 6.35, given the latest momentum, and Return on Invested Capital for the company is 3.94. Return on Equity for this stock inclined to 7.04, with Return on Assets sitting at 3.54. When it comes to the capital structure of this company, DiamondRock Hospitality Company [DRH] has a Total Debt to Total Equity ratio set at 81.56. Additionally, DRH Total Debt to Total Capital is recorded at 44.92, with Total Debt to Total Assets ending up at 40.43. Long-Term Debt to Equity for the company is recorded at 80.96, with the Long-Term Debt to Total Capital now at 44.59.
Reflecting on the efficiency of the workforce at the company, DiamondRock Hospitality Company [DRH] managed to generate an average of $3,644,267 per employee. Receivables Turnover for the company is 6.74 with a Total Asset Turnover recorded at a value of 0.32.
DRH Stock EPS
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%.
DiamondRock Hospitality Company [DRH] Institutonal Ownership Details
The top three institutional holders of DRH stocks are: VANGUARD GROUP INC with ownership of 1.31 billion shares, which is approximately 8.2089%. BLACKROCK INC., holding 1.04 billion shares of the stock with an approximate value of $170.67 trillion in DRH stocks shares; and BERKSHIRE HATHAWAY INC, currently with $150.98 trillion in DRH stock with ownership which is approximately 5.7381%.