DiamondRock Hospitality Company (NYSE:DRH) reaches $2.23B market cap as shares jumped 1.24% in recent session. It closed at $10.62, after slipping as low as $10.46 through the day. The shares were pushed to an intraday high Wednesday at $10.67. Trading activity significantly improved as the volume at ready counter increased to 4,039,214 shares versus 3,184,905 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,871,277 shares. The stock is now 22.21% above against its bear-market low of $8.69 on December 26, 2018. It has retreated -22.32% since it’s 52-week high of $12.99 reached in June. Now the market price is down -4.5% on the year and up 16.96% YTD.
DRH’s 50 day simple moving average (SMA 50) price is $9.78 and its 200-day simple moving average (SMA 200) price is $11.15. The company’s stock currently has a total float of 205.58M shares. Its weekly volatility is hovering around 1.49% and felt 1.83% volatility in price over a month. On the upside, the share price will test short term resistance at around $10.7. On a downside, the stock is likely to find some support, which begins at $10.5. The failure to get near-term support could push it to $10.38.
Separately, it has been reported that multiple insider activity took place at DiamondRock Hospitality Company (DRH). EVP & General Counsel Tennis William J sold 30,000 shares for $252,363 in transaction occurred on 2018/05/30. After making this transaction, the EVP & General Counsel owns a direct stake of 383,700 shares, worth $2,680,095, as per the last closing price. On 2018/05/24 Quinn Briony R., Sr. Vice President & Treasurer at DRH, dumped 10,000 shares at an average price of $12.58 per share. The selling total is valued at $883,287.
Director, Ray Gilbert T had divested 11,268 shares for $63,360 through a trade on 2018/05/09. Following this activity, the insider holds 132,286 shares worth $672,883 as of recent close. Wall Street’s most bullish DiamondRock Hospitality Company (NYSE:DRH) analysts are predicting the share price to blow past $12 per share during the next 12 months. The current median share price forecast by them is $10.25, suggesting that the stock could increase -3.48% in that time frame. The average price target of $9.96 calls for a nearly -6.21% increase in the stock price.
It had seen a negative analyst call from KeyBanc Capital Mkts, which downgraded the stock from Sector Weight to Underweight on January 25. Analysts at Goldman, shed their positive views on January 10 by lowering it fromNeutral to Sell. The stock lost favor of Raymond James analysts who expressed their lack of confidence in it using a downgrade from Outperform to Mkt Perform on January 08. Barclays analysts came out with bearish views on December 18 when the call was made. They think the stock is now Equal Weight compared to to their prior call for Overweight.
When looking at valuations, DiamondRock Hospitality Company (DRH) has a cheap P/E of 25.9x as compared to industry average of 36.35x. Moreover, it trades for 23.29 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.16x price/book and 2.63x price/sales. Compared to others, DiamondRock Hospitality Company is in a different league with regards to profitability, having net margins of 10.5%. To put some perspective around this, the industry’s average net margin is 37.48%. DRH’s ROE is 4.7%, which is also considerably worse than the industry’s ROE of 14.33%.
Shares of DiamondRock Hospitality Company (DRH) have gained 0.2% since the company’s last earnings report. Over the past 12 fiscal quarters, DiamondRock Hospitality Company (NYSE:DRH) has topped consensus earnings estimates in 0 quarters (0%), missed earnings in 12 quarters (100%), whereas at 0 occasion EPS met analyst expectations. DRH last reported earnings on November 05, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.27 per share, -95.03% change on the same period last year. That was better than consensus for $0.26. Revenue for the recent quarter stood at $220.82 million, down -1% on last year and below the $227.22 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $183.87 million to $216.3 million, which should be compared with $199.21 million generated last year. EPS is seen in a range of $0.28 to $0.34, against the $0.31 reported a year ago.