DiamondRock Hospitality (NYSE:DRH) Hits New 12-Month Low – Should You Sell?

Shares of DiamondRock Hospitality (NYSE:DRH) hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $7.69 and last traded at $7.70, with a volume of 2556709 shares traded. The stock had previously closed at $7.95.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on DRH. Evercore ISI cut shares of DiamondRock Hospitality from an “outperform” rating to an “inline” rating and set a $10.50 target price on the stock. in a report on Friday, November 15th. Stifel Nicolaus cut shares of DiamondRock Hospitality from a “buy” rating to a “hold” rating and dropped their target price for the stock from $10.75 to $10.25 in a report on Friday, November 22nd. Finally, Wells Fargo & Company decreased their price target on shares of DiamondRock Hospitality from $10.50 to $9.50 and set an “equal weight” rating on the stock in a research report on Tuesday, February 18th. Four investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. According to data from MarketBeat.com, DiamondRock Hospitality has a consensus rating of “Hold” and a consensus price target of $10.05.

DiamondRock Hospitality Stock Up 2.4 %

The stock has a market capitalization of $1.64 billion, a P/E ratio of 28.23, a P/E/G ratio of 2.06 and a beta of 1.63. The company’s 50-day moving average price is $8.57 and its 200 day moving average price is $8.85. The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.73 and a current ratio of 1.73.

DiamondRock Hospitality Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, April 11th. Stockholders of record on Friday, March 28th will be given a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a dividend yield of 4.05%. This is an increase from DiamondRock Hospitality’s previous quarterly dividend of $0.03. The ex-dividend date is Friday, March 28th. DiamondRock Hospitality’s dividend payout ratio (DPR) is presently 188.24%.

Institutional Trading of DiamondRock Hospitality

Several institutional investors and hedge funds have recently modified their holdings of the company. GF Fund Management CO. LTD. bought a new stake in shares of DiamondRock Hospitality during the 4th quarter valued at $34,000. GTS Securities LLC bought a new stake in shares of DiamondRock Hospitality during the 4th quarter valued at $105,000. PharVision Advisers LLC bought a new stake in shares of DiamondRock Hospitality during the 4th quarter valued at $98,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in DiamondRock Hospitality by 3.5% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,279,283 shares of the real estate investment trust’s stock valued at $11,552,000 after acquiring an additional 43,555 shares during the last quarter. Finally, Voloridge Investment Management LLC bought a new stake in DiamondRock Hospitality in the 4th quarter valued at $604,000.

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 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.