Compass Point has recently raised Diamondrock Hospitality Co (DRH) stock to Buy rating, as announced on August 5, 2024, according to Finviz. Earlier, on January 10, 2024, Wolfe Research had initiated the stock to Outperform, setting a price target of $11. Wells Fargo also reduced Equal Weight rating with a price target of $9. Additionally, Wells Fargo raised Overweight rating on March 30, 2023, with a target price of $9. Morgan Stanley analysts, in their report published on December 5, 2022, also initiated their research coverage for Diamondrock Hospitality Co’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Diamondrock Hospitality Co (DRH) Stock Trading Recap
On Monday, Diamondrock Hospitality Co (DRH) stock saw a decline, ending the day at $8.73 which represents a decrease of $-0.22 or -2.46% from the prior close of $8.95. The stock opened at $8.88 and touched a low of $8.62 during the day, reaching a high of $8.88. The volume of shares traded was 2.33 million exceeding the average volume of 2.05 million.
DRH Stock Performance and Moving Averages
In recent trading, Diamondrock Hospitality Co (DRH) stock price has shown some volatility, fluctuating -3.43% over the last five trades and 0.81% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -8.49%, and it has gained 5.43% in the previous three months. Currently, DRH is trading at 0.90%, 3.65%, and -1.39% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, DRH, a Real Estate sector stock, is trading -12.61% below its 52-week high but remains 19.10% above its 52-week low. The Average True Range (ATR) (14 days) of 0.2 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Diamondrock Hospitality Co’s Profitability and Valuation Ratios
Diamondrock Hospitality Co’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 11.94% and a profit margin of 5.55%, with a gross margin of -8.49%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Diamondrock Hospitality Co’s market capitalization stands at $1.81 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 30.24, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 17.75. Additionally, the Price-to-Sales Ratio is 1.64, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.11, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 2.58% of Diamondrock Hospitality Co (DRH)’s shares, while financial institutions hold 104.45%.
