DRH Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
DiamondRock Hospitality Co (DRH) is not a strong buy for a beginner, long-term investor at this time. While the stock has some positive technical indicators and moderate analyst support, the lack of significant growth in financial performance, muted trading sentiment, and absence of strong catalysts make it a hold for now. The investor may consider monitoring the stock for better entry points or more compelling catalysts in the future.
The technical indicators for DRH are mixed. The MACD is positive but contracting, RSI is neutral at 60.997, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the stock is trading near its pivot level of 9.608, with resistance at 10.076 and support at 9.14. The pre-market change of 1.50% suggests slight upward momentum, but the regular market change of -2.10% indicates recent weakness.
Truist's recent upgrade to Buy with a price target of $11, citing stronger expected RevPAR growth.
Bullish moving averages and slight pre-market positive momentum.
Potential tailwinds from World Cup exposure and holiday shifts in 2026.
Financial performance in Q3 2025 shows minimal revenue growth (+0.09% YoY) and significant declines in net income (-16.29% YoY) and EPS (-9.09% YoY).
Lack of significant trading trends from hedge funds or insiders.
No recent news or Congress trading data to act as a catalyst.
In Q3 2025, revenue increased marginally by 0.09% YoY to $285.38M, but net income dropped significantly by 16.29% YoY to $20.07M. EPS also declined by 9.09% YoY to 0.1. Gross margin improved slightly by 2.24% YoY to 18.72%. Overall, financial performance shows weak growth trends.
Analysts have mixed ratings on DRH. Truist upgraded the stock to Buy with a price target of $11, citing stronger RevPAR growth. However, other analysts like Morgan Stanley and Barclays maintain Equal Weight or Neutral ratings, with price targets ranging from $9 to $10.50. The consensus suggests moderate upside potential but no strong bullish sentiment.
