DiamondRock Hospitality (NYSE:DRH) Sees Large Volume Increase Following Dividend Announcement

DiamondRock Hospitality (NYSE:DRH) saw an uptick in trading volume on Tuesday after the company announced a dividend. 7,488,613 shares changed hands during mid-day trading, an increase of 289% from the previous session’s volume of 1,923,925 shares.The stock last traded at $9.75 and had previously closed at $9.63.

The newly announced dividend which will be paid on Tuesday, January 14th. Investors of record on Tuesday, December 31st will be given a dividend of $0.32 per share. This is an increase from DiamondRock Hospitality’s previous quarterly dividend of $0.03. This represents a $1.28 annualized dividend and a dividend yield of 13.16%. The ex-dividend date of this dividend is Tuesday, December 31st. DiamondRock Hospitality’s dividend payout ratio is currently 42.86%.

Wall Street Analysts Forecast Growth

Several brokerages have commented on DRH. Evercore ISI downgraded DiamondRock Hospitality from an “outperform” rating to an “inline” rating and set a $10.50 target price for the company. in a research note on Friday, November 15th. Truist Financial lowered their price objective on shares of DiamondRock Hospitality from $11.00 to $10.00 and set a “hold” rating for the company in a research report on Wednesday, September 4th. StockNews.com raised shares of DiamondRock Hospitality from a “sell” rating to a “hold” rating in a research note on Tuesday, November 12th. Stifel Nicolaus cut shares of DiamondRock Hospitality from a “buy” rating to a “hold” rating and decreased their target price for the stock from $10.75 to $10.25 in a research note on Friday, November 22nd. Finally, Wells Fargo & Company increased their price target on DiamondRock Hospitality from $10.00 to $10.50 and gave the company an “equal weight” rating in a research note on Monday. Four research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $10.38.

DiamondRock Hospitality Price Performance

The stock has a market cap of $2.02 billion, a P/E ratio of 34.75, a P/E/G ratio of 5.58 and a beta of 1.60. The company’s 50 day moving average price is $9.06 and its 200-day moving average price is $8.63. The company has a quick ratio of 1.73, a current ratio of 1.73 and a debt-to-equity ratio of 0.66.

Institutional Investors Weigh In On DiamondRock Hospitality

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Geode Capital Management LLC boosted its holdings in DiamondRock Hospitality by 0.5% in the third quarter. Geode Capital Management LLC now owns 5,350,283 shares of the real estate investment trust’s stock valued at $46,716,000 after acquiring an additional 28,391 shares during the last quarter. Barclays PLC boosted its stake in shares of DiamondRock Hospitality by 37.6% in the 3rd quarter. Barclays PLC now owns 368,616 shares of the real estate investment trust’s stock valued at $3,219,000 after purchasing an additional 100,805 shares during the last quarter. Orion Portfolio Solutions LLC increased its position in shares of DiamondRock Hospitality by 1.6% during the third quarter. Orion Portfolio Solutions LLC now owns 104,965 shares of the real estate investment trust’s stock worth $916,000 after buying an additional 1,652 shares during the period. Jane Street Group LLC raised its stake in DiamondRock Hospitality by 73.0% during the third quarter. Jane Street Group LLC now owns 302,757 shares of the real estate investment trust’s stock worth $2,643,000 after buying an additional 127,717 shares during the last quarter. Finally, Wellington Management Group LLP lifted its holdings in DiamondRock Hospitality by 15.6% in the third quarter. Wellington Management Group LLP now owns 4,925,093 shares of the real estate investment trust’s stock valued at $42,996,000 after buying an additional 663,529 shares during the period.

DiamondRock Hospitality Company Profile

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels with over 9,700 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment.