The Stock Of The Week: DiamondRock Hospitality Company (DRH)


As of Friday close, DiamondRock Hospitality Company’s (NYSE:DRH) stock was down -$0.32, moving down -3.96 percent to $7.76. The average number of shares traded per day over the past five days has been 3,582,160 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.48 fall in that time frame. In the last twenty days, the average volume was 2,458,660, while in the previous 50 days, it was 1,903,260.

Since last month, DRH stock retreated -18.06%. Shares of the company fell to $7.72 on 03/17/23, the lowest level in the past month. A 52-week high of $11.10 was reached on 02/02/23 after having rallying from a 52-week low of $7.15. Since the beginning of this year, DRH’s stock price has dropped by -5.25% or -$0.43, and marked a new high 14 times. However, the stock has declined by -30.11% since its 52-week high.

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DRH stock investors should be aware that DiamondRock Hospitality Company (DRH) stock had its last reported insider trading activity 44 days ago on Feb 02. Brugger Mark W, the President and CEO of the company, disposed of 24,310 shares for $10.00 on Feb 02. It resulted in a $243,100 divestment by the insider.

Valuation Metrics

Right now, DiamondRock Hospitality Company (DRH) has a P/E ratio of about 16.65. The stock’s beta is 1.67. Besides these, the trailing price-to-sales (P/S) ratio of 1.64, the price-to-book (PB) ratio of 1.03, and the price-to-cash flow ratio of 12.46 may also be considered.

The latest dividend of $0.03 per share was paid out, which is -50.0% less than last year’s $0.06. On Thursday March 2 2023, a $0.03 dividend decrease was announced.

Financial Health

According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 0.75, and the total debt-to-equity ratio was 0.75. On the profitability front, the trailing twelve-month gross margin is 31.70% percent. In the year ended September 29, operating margins totaled 15.20%. Based on annual data, DRH earned $161.76 million in gross profit and brought in $1.0 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 5.40%. Return on equity (ROE) for the past 12 months was 6.30%.

In DiamondRock Hospitality Company’s quarter-end financial report for September 29, it reported total debt of $1.19 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. DRH’s revenue rose 25.54% to $268.21 million during the quarter, while net income inched up to $255.06 million. While analysts expected DiamondRock Hospitality Company to report $0.14 quarterly earnings, the actual figure was $0.12 per share, beating the consensus estimate by -14.30%. During the quarter, the company generated $64.11 million in EBITDA. The value of shareholders’ equity is $209.55 million.

Technical Picture

This quick technical analysis looks at DiamondRock Hospitality Company’s (DRH) price momentum. With a historical volatility rate of 29.13%, the RSI 9-day stood at 16.08% on 17 March.

With respect to its five-day moving average, the current DiamondRock Hospitality Company price is down by -5.83% percent or -$0.48. At present, DRH shares trade -13.59% below its 20-day simple moving average and -13.87% percent below its 100-day simple moving average. However, the stock is currently trading approximately -3.60% below its SMA50 and -24.59% below its SMA200.

Stochastic coefficient K was 13.88% and Stochastic coefficient D was 17.80%, while ATR was 0.30. Given the Stochastic reading of 3.59% for the 14-day period, the RSI (14) reading has been calculated as 23.60%. As of today, the MACD Oscillator reading stands at -0.28, while the 14-day reading stands at -0.44.


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