Key Takeaways From Diamondrock Hospitality Analyst Ratings
Analysts' ratings for Diamondrock Hospitality (NYSE:DRH) over the last quarter vary from bullish to bearish, as provided by 4 analysts.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 1 | 2 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 1 | 1 | 0 | 0 |
Analysts have set 12-month price targets for Diamondrock Hospitality, revealing an average target of $10.62, a high estimate of $11.00, and a low estimate of $10.00. Observing a 9.82% increase, the current average has risen from the previous average price target of $9.67.
Breaking Down Analyst Ratings: A Detailed Examination
The standing of Diamondrock Hospitality among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Patrick Scholes | Truist Securities | Raises | Hold | $11.00 | $10.00 |
| Simon Yarmak | Stifel | Raises | Buy | $10.50 | $10.00 |
| Keegan Carl | Wolfe Research | Announces | Outperform | $11.00 | - |
| Dori Kesten | Wells Fargo | Raises | Equal-Weight | $10.00 | $9.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Diamondrock Hospitality. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Diamondrock Hospitality compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Diamondrock Hospitality's stock. This comparison reveals trends in analysts' expectations over time.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Diamondrock Hospitality's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
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Discovering Diamondrock Hospitality: A Closer Look
Diamondrock Hospitality Company is a real estate investment trust that owns lodging properties. Its business is to acquire, own, manage, and renovate full-service hotel properties in the United States. It operates in cities such as Chicago, Boston, New York, Denver, and others. Within DiamondRock's holdings, the majority of the hotel brands include Marriott, Starwood, and Hilton. The revenue is divided between room, food and beverage, and others. The room segment contributes the majority of the revenue. The firm's customers include leisure transient, business transient, and group customers.
Key Indicators: Diamondrock Hospitality's Financial Health
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: Diamondrock Hospitality's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 3.33%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Real Estate sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 3.22%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Diamondrock Hospitality's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 0.52%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Diamondrock Hospitality's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.26%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 0.79, Diamondrock Hospitality adopts a prudent financial strategy, indicating a balanced approach to debt management.
The Core of Analyst Ratings: What Every Investor Should Know
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.
This article was generated by Benzinga's automated content engine and reviewed by an editor.