Many stocks have been testing new highs in 2020, and one of the most notable is DiamondRock Hospitality Company (DRH). Currently, DRH is trading at $7.93 and the avg recommendation for the stock is Hold. while the current analyst price target stands at $5.48.
To add more color to this target, the company’s high over the last year is $11.79 and the low is $1.96. Over the last 52 weeks, DRH is down -32.74% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, DRH reported a profit of $-19.52 million. DiamondRock Hospitality Company also saw revenues decrease to $170.0 million. In addition, DRH has free cash flow of -$38.51 million as of 03-2020 The company’s EBITDA came in at $10.99 million which compares well with its peers.
DRH booked profit margins of 15.40%, its Return on Equity (ROE) is 7.60%, and its Return on Assets is 4.10%. All told, it is clear that, DRH needs to be on your watchlist.
About DiamondRock Hospitality Company
If readers are unfamiliar, DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in top gateway markets and destination resort locations. The Company owns 31 premium quality hotels with over 10,000 rooms. The Company has strategically positioned its hotels to be operated both under leading global brand families as well as unique boutique hotels in the lifestyle segment.
Find out when DRH reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.
Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. DRH has a short ratio of 2.82 and outstanding shares of 201.21M.
DRH has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 4.74 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.69. Investors should also keep an eye on sector updates as DRH has historically followed its peers on positive news.
All told, DiamondRock Hospitality Company DRH has strung together solid data and demonstrated underlying fundamentals. At its current valuation, DRH represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
DiamondRock Hospitality Company DRH is now commanding a market cap of 1.60B and a float of 195.73M. DRH is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of DRH stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in DRH, either long or short, and we have not been compensated for this article.