Diamondrock Hospitality Co. (NYSE: DRH) has experienced a rise in its stock price by 0.55 compared to its previous closing price of 9.05. However, the company has seen a gain of 1.68% in its stock price over the last five trading days. Seeking Alpha reported 2024-04-21 that U.S. equity markets posted their worst week in a year while benchmark interest rates surged to five-month highs as investors monitored an intensification of geopolitical tensions and hawkish Fed commentary. Inflamed by resurgent energy prices and insatiable Federal government spending, Fed Chair Powell and other officials acknowledged a stalling-out of inflation progress in recent months and delayed cut expectations. Declining on all five trading sessions, the S&P 500 declined another 3.1% this week – its worst week since March 2023 – while high-flying technology stocks were hit particularly hard.
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 25.24x, Company’s 36-month beta value is 1.61.Analysts have differing opinions on the stock, with 2 analysts rating it as a “buy,” 3 as “overweight,” 8 as “hold,” and 3 as “sell.”
The public float for DRH is 204.66M, and currently, short sellers hold a 7.45% ratio of that floaft. The average trading volume of DRH on April 30, 2024 was 1.68M shares.
DRH’s Market Performance
The stock of Diamondrock Hospitality Co. (DRH) has seen a 1.68% increase in the past week, with a -5.31% drop in the past month, and a -2.99% fall in the past quarter. The volatility ratio for the week is 1.94%, and the volatility levels for the past 30 days are at 2.15% for DRH. The simple moving average for the past 20 days is -1.37% for DRH’s stock, with a 5.03% simple moving average for the past 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 -2.72% 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 -8.91% of loss for the given period.
Volatility was left at 2.15%, however, over the last 30 days, the volatility rate increased by 1.94%, as shares sank -4.61% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -2.15% lower at present.
During the last 5 trading sessions, DRH rose by +1.68%, which changed the moving average for the period of 200-days by +11.38% in comparison to the 20-day moving average, which settled at $9.20. In addition, Diamondrock Hospitality Co. saw -3.09% in overturn over a single year, with a tendency to cut further losses.
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 2.86. The receivables turnover for the company is 7.43for trailing twelve months and the total asset turnover is 0.33.
Conclusion
In a nutshell, Diamondrock Hospitality Co. (DRH) has experienced a mixed performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
