Should You Buy Diamondrock Hospitality Co (DRH) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
9.190
1 Day change
1.66%
52 Week Range
9.820
Analysis Updated At
2026/01/28
Buy now for a beginner long-term investor. DRH is trading near key support (~9.09 with next support ~8.90) after a recent dip, while longer-term trend structure remains constructive (SMA_5 > SMA_20 > SMA_200). Analyst sentiment has improved meaningfully since early January (including a Truist upgrade to Buy with $11 PT), and the company has identifiable 2026 demand tailwinds (RevPAR expectations; major-event exposure noted by analysts). The main drawback is that the latest reported quarter (2025/Q3) showed flat revenue and weaker earnings, but at the current ~9.04 price the risk/reward is favorable for a long-term entry rather than waiting.
**Intellectia Proprietary Trading Signals**
- [AI Stock Picker](module://ai_stock_pick): No signal on given stock today.
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Technical Analysis
Price/Trend: DRH is pulling back short-term (regular session -2.27%) and is trading below the pivot (9.392), but it is sitting very close to S1 support (9.085). A clean hold above ~9.09 increases the odds of a rebound toward 9.39 (pivot) and then 9.70 (R1).
Momentum: MACD histogram is negative (-0.0276) and expanding to the downside, indicating bearish short-term momentum still in play.
RSI: RSI_6 at ~32 is near the oversold area (weakness is getting stretched), which often aligns with better entries near support.
Moving averages: Bullish stack (SMA_5 > SMA_20 > SMA_200) supports a constructive intermediate/longer-term trend despite the near-term dip.
Key levels: Support ~9.085 then ~8.895; resistance ~9.392 then ~9.70.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Sentiment from positioning: Open interest put/call of 0.28 is call-heavy (bullish skew), suggesting market positioning is not defensive.
Liquidity/strength of signal: Options volume is 0 today (put/call volume ratio 0.0), so the sentiment read is based on open interest rather than active trading.
Volatility: IV percentile ~10.8 and IV rank ~5.46 imply relatively low implied volatility vs its own history—often consistent with calmer expectations and can align with steady long-term holding, though it also means options markets aren’t pricing a big near-term move.
Technical Summary
Sell
5
Buy
6
Positive Catalysts
1) Improving Street outlook into 2026: Truist upgraded to Buy (PT $11) on expectations for stronger 2026 RevPAR growth than the Street anticipates.
3) Event/timing tailwinds cited by analysts: positioning to benefit from World Cup exposure and holiday shift tailwinds (as noted by Stifel).
4) Upcoming earnings catalyst: QDEC 2025 earnings on 2026-02-26 (after hours) could re-rate shares if RevPAR/forward guidance is better than feared.
5) REIT distributions: recently announced 2025 distribution schedule supports an income-oriented long-term profile.
Neutral/Negative Catalysts
4) Sector perception: Barclays framed hotel REITs as often a short-term trading sector for many investors, which can cap valuation expansion if sentiment turns.
Financial Performance
Latest reported quarter: 2025/Q3.
Revenue: $285.384M, up ~0.09% YoY (essentially flat growth).
Net income: $20.071M, down ~16.29% YoY (meaningful decline).
EPS: $0.10, down ~9.09% YoY.
Gross margin: 18.72%, up ~2.24% YoY (margin improvement, but not enough to prevent earnings decline).
Takeaway: Top-line is stable, margins slightly improved, but bottom-line growth weakened—so the bull case relies more on 2026 demand/RevPAR acceleration than on current-quarter earnings momentum.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent trend: Analysts have been gradually raising price targets since late 2025, and early January 2026 brought the most notable shift with Truist upgrading DRH to Buy.
Key recent actions:
- 2026-01-09 Truist: Upgrade to Buy from Hold; PT raised to $11 (most bullish recent call; expects stronger 2026 RevPAR).
- 2026-01-16 Morgan Stanley: PT to $9 from $8.50; Equal Weight (cautious/neutral; muted fundamentals).
- 2026-01-09 Citi: PT to $9.50 from $8; Neutral.
- 2026-01-06 Barclays: Initiated Equal Weight; PT $10.
- 2025-11 to 2025-12 Stifel/Evercore: multiple PT raises, generally Hold/In Line.
Wall Street pros: Improving RevPAR outlook into 2026, potential sentiment/multiple expansion, and event-driven tailwinds.
Wall Street cons: Many ratings remain Neutral/Equal Weight, reflecting skepticism about sustained outperformance and continued macro/rate sensitivity.
Influential/political trading check: No recent congress trading data available; hedge fund and insider activity described as Neutral with no significant recent trends.
Wall Street analysts forecast DRH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DRH is 9.97 USD with a low forecast of 8.5 USD and a high forecast of 11 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
Wall Street analysts forecast DRH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DRH is 9.97 USD with a low forecast of 8.5 USD and a high forecast of 11 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Buy
6 Hold
0 Sell
Moderate Buy
Current: 9.040
Low
8.5
Averages
9.97
High
11
Current: 9.040
Low
8.5
Averages
9.97
High
11
Morgan Stanley
Stephen Grambling
Equal Weight
maintain
$9
AI Analysis
2026-01-16
Reason
Morgan Stanley
Stephen Grambling
Price Target
$9
AI Analysis
2026-01-16
maintain
Equal Weight
Reason
Morgan Stanley analyst Stephen Grambling raised the firm's price target on DiamondRock to $9 from $8.50 and keeps an Equal Weight rating on the shares. Gaming, lodging and leisure fundamentals were "muted" in 2025, with select areas of acceleration skewed to companies serving older, wealthier consumers, the analyst tells investors in a 2026 look ahead note on the group. For 2026, the firm expects "more of the same fundamentally," with the added wrinkle of rates boosting goods over services, the analyst added.
Truist
Hold
to
Buy
upgrade
$10 -> $11
2026-01-09
Reason
Truist
Price Target
$10 -> $11
2026-01-09
upgrade
Hold
to
Buy
Reason
Truist upgraded DiamondRock to Buy from Hold with a price target of $11, up from $10. The upgrade is driven by expectations for stronger 2026 RevPAR growth than the Street anticipates, which should support both earnings upside and valuation multiple expansion, the analyst tells investors in a research note. For the first time in years, there might be some upside for the Hotel REIT subsector, and Truist sees modestly better RevPAR growth driving both earnings upside in what are more RevPAR-sensitive business models and "somewhat" better sentiment.
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