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

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

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the stock. Stifel Nicolaus cut 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 research note on Friday, November 22nd. Wells Fargo & Company cut their price target 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 research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $10.05.

DiamondRock Hospitality Stock Performance

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

DiamondRock Hospitality Increases Dividend

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

Institutional Investors Weigh In On DiamondRock Hospitality

A number of large investors have recently modified their holdings of DRH. Rush Island Management LP purchased a new stake in shares of DiamondRock Hospitality during the third quarter worth $51,726,000. Bank of America Corp DE grew its holdings 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 buying an additional 3,064,117 shares in the last quarter. Cbre Investment Management Listed Real Assets LLC purchased a new stake in shares of DiamondRock Hospitality during the fourth quarter worth $14,889,000. Alyeska Investment Group L.P. grew its holdings 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 buying an additional 1,201,955 shares in the last quarter. Finally, Lasalle Investment Management Securities LLC purchased a new stake in shares of DiamondRock Hospitality during the fourth quarter worth $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.