DiamondRock Hospitality (NYSE:DRH) Hits New 52-Week Low – Should You Sell?

DiamondRock Hospitality (NYSE:DRH) shares hit a new 52-week low during mid-day trading on Friday . The company traded as low as $7.65 and last traded at $7.77, with a volume of 648354 shares changing hands. The stock had previously closed at $7.98.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on DRH shares. Stifel Nicolaus lowered shares of DiamondRock Hospitality from a “buy” rating to a “hold” rating and dropped their price objective for the company from $10.75 to $10.25 in a report on Friday, November 22nd. Wells Fargo & Company dropped their price objective on shares of DiamondRock Hospitality from $10.50 to $9.50 and set an “equal weight” rating for the company in a report on Tuesday, February 18th. Four equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $10.05.

DiamondRock Hospitality Price Performance

The stock’s 50-day simple moving average is $8.50 and its 200 day simple moving average is $8.83. The company has a quick ratio of 1.73, a current ratio of 1.73 and a debt-to-equity ratio of 0.66. The company has a market cap of $1.63 billion, a price-to-earnings ratio of 27.84, a PEG ratio of 2.06 and a beta of 1.63.

DiamondRock Hospitality Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, April 11th. Shareholders of record on Friday, March 28th will be given a $0.08 dividend. The ex-dividend date is Friday, March 28th. This represents a $0.32 dividend on an annualized basis and a yield of 4.08%. This is a boost from DiamondRock Hospitality’s previous quarterly dividend of $0.03. DiamondRock Hospitality’s dividend payout ratio is presently 188.24%.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Rush Island Management LP acquired a new stake in shares of DiamondRock Hospitality during the third quarter worth about $51,726,000. Bank of America Corp DE lifted its position in shares of DiamondRock Hospitality by 78.8% during the fourth quarter. Bank of America Corp DE now owns 6,953,022 shares of the real estate investment trust’s stock worth $62,786,000 after purchasing an additional 3,064,117 shares in the last quarter. Cbre Investment Management Listed Real Assets LLC acquired a new stake in shares of DiamondRock Hospitality during the fourth quarter worth about $14,889,000. Alyeska Investment Group L.P. lifted its position in shares of DiamondRock Hospitality by 16.3% during the fourth quarter. Alyeska Investment Group L.P. now owns 8,576,077 shares of the real estate investment trust’s stock worth $77,442,000 after purchasing an additional 1,201,955 shares in the last quarter. Finally, Lasalle Investment Management Securities LLC acquired a new stake in shares of DiamondRock Hospitality during the fourth quarter worth about $9,982,000.

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.