Diamondrock Hospitality Co (NYSE: DRH) has experienced a decline in its stock price by -1.49 compared to its previous closing price of 8.04. However, the company has seen a gain of 0.13% in its stock price over the last five trading days. zacks.com reported 2025-03-04 that Investors interested in REIT and Equity Trust – Other stocks are likely familiar with DiamondRock Hospitality (DRH) and Sunstone Hotel Investors (SHO). But which of these two stocks is more attractive to value investors?
Is It Worth Investing in Diamondrock Hospitality Co (NYSE: DRH) Right Now?
The price-to-earnings ratio for Diamondrock Hospitality Co (NYSE: DRH) is 43.93x, which is above its average ratio. Moreover, the 36-month beta value for DRH is 1.38. Analysts have varying opinions on the stock, with 3 analysts rating it as a “buy,” 0 as “overweight,” 8 as “hold,” and 0 as “sell.”
The public float for DRH is 201.87M and currently, short sellers hold a 8.59% of that float. On March 19, 2025, DRH’s average trading volume was 1.99M shares.
DRH’s Market Performance
DRH’s stock has seen a 0.13% increase for the week, with a -7.91% drop in the past month and a -16.44% fall in the past quarter. The volatility ratio for the week is 2.83%, and the volatility levels for the past 30 days are at 3.11% for Diamondrock Hospitality Co The simple moving average for the last 20 days is -3.17% for DRH’s stock, with a simple moving average of -7.13% for the last 200 days.
Analysts’ Opinion of DRH
Many brokerage firms have already submitted their reports for DRH stocks, with Stifel repeating the rating for DRH by listing it as a “Hold.” The predicted price for DRH in the upcoming period, according to Stifel is $10.25 based on the research report published on November 22, 2024 of the previous year 2024.
Evercore ISI, on the other hand, stated in their research note that they expect to see DRH reach a price target of $10.50. The rating they have provided for DRH stocks is “In-line” according to the report published on November 15th, 2024.
Compass Point gave a rating of “Buy” to DRH, setting the target price at $10 in the report published on August 05th of the previous year.
DRH Trading at -7.30% 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 -19.03% of loss for the given period.
Volatility was left at 3.11%, however, over the last 30 days, the volatility rate increased by 2.83%, as shares sank -9.07% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -11.21% lower at present.
During the last 5 trading sessions, DRH rose by +0.13%, which changed the moving average for the period of 200-days by -5.60% in comparison to the 20-day moving average, which settled at $8.18. In addition, Diamondrock Hospitality Co saw -12.29% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at DRH starting from Donnelly Jeffrey, who purchase 10,000 shares at the price of $7.98 back on Mar 11 ’25. After this action, Donnelly Jeffrey now owns 672,894 shares of Diamondrock Hospitality Co, valued at $79,800 using the latest closing price.
Stock Fundamentals for DRH
Current profitability levels for the company are sitting at:
- 0.01 for the present operating margin
- 0.48 for the gross margin
The net margin for Diamondrock Hospitality Co stands at 0.04. The total capital return value is set at 0.01. Equity return is now at value 2.98, with 1.50 for asset returns.
Based on Diamondrock Hospitality Co (DRH), the company’s capital structure generated 0.43 points at debt to capital in total, while cash flow to debt ratio is standing at 0.19. The debt to equity ratio resting at 0.74. The interest coverage ratio of the stock is 0.24.
Currently, EBITDA for the company is 228.9 million with net debt to EBITDA at 4.83. When we switch over and look at the enterprise to sales, we see a ratio of 2.43. The receivables turnover for the company is 7.74for trailing twelve months and the total asset turnover is 0.36.
Conclusion
To wrap up, the performance of Diamondrock Hospitality Co (DRH) has been bad in recent times. The stock has received a mixed of “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.
