Diamondrock Hospitality Co. (NYSE: DRH)’s stock price has increased by 0.21 compared to its previous closing price of 9.41. However, the company has seen a 0.21% increase in its stock price over the last five trading sessions. Seeking Alpha reported 2024-03-01 that Hotel REITs experienced a significant drop in share value during the COVID-19 pandemic but have since recovered and outperformed the Vanguard Real Estate ETF. Consumer spending is shifting towards services like travel and leisure, which bodes well for Hotel REITs. Hotel REITs have posted the fourth-best total returns among REIT sectors in 2024, indicating their potential for future growth.
Is It Worth Investing in Diamondrock Hospitality Co. (NYSE: DRH) Right Now?
The price-to-earnings ratio for Diamondrock Hospitality Co. (NYSE: DRH) is above average at 26.15x. The 36-month beta value for DRH is also noteworthy at 1.61. There are mixed opinions on the stock, with 2 analysts rating it as a “buy,” 3 rating it as “overweight,” 8 rating it as “hold,” and 3 rating it as “sell.”
The public float for DRH is 204.66M, and at present, short sellers hold a 7.77% of that float. The average trading volume of DRH on April 04, 2024 was 1.62M shares.
DRH’s Market Performance
The stock of Diamondrock Hospitality Co. (DRH) has seen a 0.21% increase in the past week, with a -1.05% drop in the past month, and a 0.53% gain in the past quarter. The volatility ratio for the week is 1.71%, and the volatility levels for the past 30 days are at 1.98% for DRH. The simple moving average for the last 20 days is -0.91% for DRH stock, with a simple moving average of 10.22% for the last 200 days.
Analysts’ Opinion of DRH
Many brokerage firms have already submitted their reports for DRH stocks, with Wolfe Research repeating the rating for DRH by listing it as a “Outperform.” The predicted price for DRH in the upcoming period, according to Wolfe Research is $11 based on the research report published on January 10, 2024 of the current year 2024.
Wells Fargo, on the other hand, stated in their research note that they expect to see DRH reach a price target of $9, previously predicting the price at $9.50. The rating they have provided for DRH stocks is “Equal Weight” according to the report published on December 08th, 2023.
Wells Fargo gave a rating of “Overweight” to DRH, setting the target price at $9 in the report published on March 30th of the previous year.
DRH Trading at 0.71% from the 50-Day Moving Average
After a stumble in the market that brought DRH to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -5.61% of loss for the given period.
Volatility was left at 1.98%, however, over the last 30 days, the volatility rate increased by 1.71%, as shares sank -0.42% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -0.53% lower at present.
During the last 5 trading sessions, DRH rose by +0.21%, which changed the moving average for the period of 200-days by +18.02% in comparison to the 20-day moving average, which settled at $9.52. In addition, Diamondrock Hospitality Co. saw 0.43% in overturn over a single year, with a tendency to cut further gains.
Stock Fundamentals for DRH
Current profitability levels for the company are sitting at:
- -0.03 for the present operating margin
- 0.57 for the gross margin
The net margin for Diamondrock Hospitality Co. stands at 0.08. The total capital return value is set at -0.01. Equity return is now at value 5.34, with 2.68 for asset returns.
Based on Diamondrock Hospitality Co. (DRH), the company’s capital structure generated 0.46 points at debt to capital in total, while cash flow to debt ratio is standing at 0.17. The debt to equity ratio resting at 0.84. The interest coverage ratio of the stock is -0.46.
Currently, EBITDA for the company is 263.62 million with net debt to EBITDA at 4.41. When we switch over and look at the enterprise to sales, we see a ratio of 2.93. The receivables turnover for the company is 7.43for trailing twelve months and the total asset turnover is 0.33.
Conclusion
In summary, Diamondrock Hospitality Co. (DRH) has had a better performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
