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

Shares of DiamondRock Hospitality (NYSE:DRH) saw unusually-strong trading volume on Tuesday following a dividend announcement from the company. Approximately 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. Stockholders of record on Tuesday, December 31st will be paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 13.14%. This is an increase from DiamondRock Hospitality’s previous quarterly dividend of $0.03. DiamondRock Hospitality’s payout ratio is currently 42.86%.

Analysts Set New Price Targets

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

DiamondRock Hospitality Stock Performance

The business’s 50-day simple moving average is $9.04 and its two-hundred day simple moving average is $8.62. The firm has a market cap of $2.02 billion, a price-to-earnings ratio of 34.39, a P/E/G ratio of 5.58 and a beta of 1.60. 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 Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Quarry LP grew its stake in DiamondRock Hospitality by 2,093.9% during the 2nd quarter. Quarry LP now owns 3,949 shares of the real estate investment trust’s stock valued at $33,000 after acquiring an additional 3,769 shares in the last quarter. Headlands Technologies LLC acquired a new position in shares of DiamondRock Hospitality in the 2nd quarter worth approximately $42,000. Mirae Asset Global Investments Co. Ltd. lifted its holdings in shares of DiamondRock Hospitality by 35.1% in the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 8,153 shares of the real estate investment trust’s stock worth $73,000 after acquiring an additional 2,116 shares during the last quarter. Harbor Capital Advisors Inc. acquired a new stake in DiamondRock Hospitality during the 3rd quarter worth approximately $74,000. Finally, Choreo LLC acquired a new stake in DiamondRock Hospitality during the 2nd quarter worth approximately $89,000.

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.