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

DiamondRock Hospitality (NYSE:DRH) saw strong trading volume on Tuesday following a dividend announcement from the company. 7,488,613 shares were traded 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 paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 13.24%. The ex-dividend date of this dividend is Tuesday, December 31st. This is a boost from DiamondRock Hospitality’s previous quarterly dividend of $0.03. DiamondRock Hospitality’s dividend payout ratio is currently 42.86%.

Wall Street Analyst Weigh In

Several research firms have weighed in on DRH. StockNews.com upgraded shares of DiamondRock Hospitality from a “sell” rating to a “hold” rating in a report on Tuesday, November 12th. Wells Fargo & Company boosted their target price on shares of DiamondRock Hospitality from $10.00 to $10.50 and gave the company an “equal weight” rating in a report on Monday. Evercore ISI lowered 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 lowered shares of DiamondRock Hospitality from a “buy” rating to a “hold” rating and decreased their target price for the company from $10.75 to $10.25 in a report on Friday, November 22nd. Finally, Truist Financial decreased their target price 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. Four research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $10.38.

DiamondRock Hospitality Price Performance

The company has a debt-to-equity ratio of 0.66, a quick ratio of 1.73 and a current ratio of 1.73. The stock’s 50-day moving average is $9.08 and its 200 day moving average is $8.64. The stock has a market capitalization of $2.01 billion, a PE ratio of 34.54, a P/E/G ratio of 5.58 and a beta of 1.60.

Institutional Trading of DiamondRock Hospitality

A number of large investors have recently bought and sold shares of the business. Geode Capital Management LLC boosted its stake in DiamondRock Hospitality by 0.5% during the 3rd quarter. Geode Capital Management LLC now owns 5,350,283 shares of the real estate investment trust’s stock worth $46,716,000 after purchasing an additional 28,391 shares during the period. Barclays PLC boosted its stake in DiamondRock Hospitality by 37.6% during the 3rd quarter. Barclays PLC now owns 368,616 shares of the real estate investment trust’s stock worth $3,219,000 after purchasing an additional 100,805 shares during the period. Orion Portfolio Solutions LLC boosted its stake in DiamondRock Hospitality by 1.6% during the 3rd quarter. Orion Portfolio Solutions LLC now owns 104,965 shares of the real estate investment trust’s stock worth $916,000 after purchasing an additional 1,652 shares during the period. Jane Street Group LLC boosted its stake in DiamondRock Hospitality by 73.0% during the 3rd quarter. Jane Street Group LLC now owns 302,757 shares of the real estate investment trust’s stock worth $2,643,000 after purchasing an additional 127,717 shares during the period. Finally, Wellington Management Group LLP boosted its stake in DiamondRock Hospitality by 15.6% during the 3rd quarter. Wellington Management Group LLP now owns 4,925,093 shares of the real estate investment trust’s stock worth $42,996,000 after purchasing an additional 663,529 shares during the period.

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.