DiamondRock Hospitality (NYSE:DRH) Cut to “Hold” at Zacks Investment Research

Zacks Investment Research cut shares of DiamondRock Hospitality (NYSE:DRH) from a strong-buy rating to a hold rating in a research report released on Thursday, Zacks.com reports.

According to Zacks, “DiamondRock Hospitality Company is a self-advised real estate company that owns, acquires and invests in upper upscale and upscale hotel properties located primarily in North America. To a lesser extent, it may invest, on a selective basis, in premium limited-service and extended-stay hotel properties in urban locations. The Company has a strategic acquisition sourcing relationship with Marriott International. “

Other equities analysts also recently issued research reports about the company. Wells Fargo & Co raised Centurylink from a market perform rating to an outperform rating and raised their price target for the stock from $12.00 to $14.00 in a research report on Wednesday, June 26th. ValuEngine downgraded Zumiez from a hold rating to a sell rating in a research report on Tuesday, July 2nd. Four investment analysts have rated the stock with a sell rating and six have issued a hold rating to the stock. The company currently has an average rating of Hold and a consensus price target of $10.19.

NYSE DRH opened at $9.90 on Thursday. DiamondRock Hospitality has a 1-year low of $8.69 and a 1-year high of $12.39. The stock has a market cap of $1.99 billion, a P/E ratio of 9.34, a P/E/G ratio of 1.92 and a beta of 1.39. The company has a 50 day moving average price of $10.14. The company has a quick ratio of 1.54, a current ratio of 1.54 and a debt-to-equity ratio of 0.62.

DiamondRock Hospitality (NYSE:DRH) last released its quarterly earnings data on Wednesday, May 8th. The real estate investment trust reported $0.04 earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.14). The firm had revenue of $202.38 million during the quarter, compared to analysts’ expectations of $194.62 million. DiamondRock Hospitality had a net margin of 10.44% and a return on equity of 4.90%. The business’s revenue for the quarter was up 11.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.17 earnings per share. Equities research analysts anticipate that DiamondRock Hospitality will post 1.03 earnings per share for the current year.

The business also recently declared a quarterly dividend, which was paid on Friday, July 12th. Shareholders of record on Friday, June 28th were given a dividend of $0.125 per share. This represents a $0.50 annualized dividend and a yield of 5.05%. The ex-dividend date of this dividend was Thursday, June 27th. DiamondRock Hospitality’s payout ratio is 49.02%.

In other DiamondRock Hospitality news, Director Maureen L. Mcavey sold 8,000 shares of the firm’s stock in a transaction on Friday, June 28th. The stock was sold at an average price of $10.36, for a total transaction of $82,880.00. Following the completion of the transaction, the director now owns 91,688 shares of the company’s stock, valued at $949,887.68. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.90% of the company’s stock.

Several hedge funds have recently bought and sold shares of DRH. Norges Bank acquired a new stake in shares of DiamondRock Hospitality during the fourth quarter worth $23,362,000. FMR LLC boosted its holdings in shares of DiamondRock Hospitality by 5.0% during the first quarter. FMR LLC now owns 11,729,394 shares of the real estate investment trust’s stock worth $127,030,000 after purchasing an additional 560,676 shares during the last quarter. Long Pond Capital LP boosted its holdings in shares of DiamondRock Hospitality by 20.0% during the first quarter. Long Pond Capital LP now owns 2,863,443 shares of the real estate investment trust’s stock worth $31,011,000 after purchasing an additional 476,643 shares during the last quarter. D. E. Shaw & Co. Inc. acquired a new stake in shares of DiamondRock Hospitality during the fourth quarter worth $4,224,000. Finally, Millennium Management LLC acquired a new stake in shares of DiamondRock Hospitality during the fourth quarter worth $3,102,000.

About DiamondRock Hospitality

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 top gateway markets and destination resort locations. The Company owns 31 premium quality hotels with over 10,000 rooms. The Company has strategically positioned its hotels to be operated both under leading global brand families such as Hilton and Marriott as well as unique boutique hotels in the lifestyle segment.

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