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DRH just hit a 52-week low and looks |
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Released on Friday, October 7, 2011, 8:00 AM ET
Pittsburgh, PA (SpeculatingStocks) - DiamondRock Hospitality Company (NYSE:DRH) is trading at $7.30 a share (4:00 PM EDT, October 6th, 2011). This is a fairly nice looking company, with long-term properties that make it enticing for many investors.
DRH is a mid-cap stock with a market capitalization of about $1.22 billion, and a volatility beta of about 2.29, so it will move in a greater volatility and magnitude than the market as a whole—a great attribute right now as the markets are low and it is the perfect time to buy many devalued stocks, only to have them rebound when the market comes out of its rut.
DiamondRock has a quick acid test ratio of 1.13, so it would be able to pay down all of its current liabilities and still have excess cash in the amount of about $9.7 million if the company were to become liquid today—a plus for this stock. However, the company has a current cash to debt ratio of 1:4, meaning that their debts cannot be covered by their operating activities.
Technically speaking, the stock just hit a new 52-week low with a new range of $6.30 per share to $12.63 per share. The fast stochastic indicator is characterized by a steep increasing %K which has already over taken the %D indicating appreciation of the current stocks value. Also the stochastic could be revealing a bullish divergence, and if the %K and %D move over the 50-point mark, the stock could take off and break its 60-day resistance of about 8.00 a share. Momentum is the grey area on this one, with the MACD giving little to no evidence that the divergence momentum is bearish or bullish.
Overall a nice looking company with some concrete fundamentals; it pays a dividend of around 4.60% annual yield, has some volatility combined with an average daily volume of 1.98 million shares, and maybe bullish-hinting technicals. DiamondRock Hospitality Company could be a nice place to hedge some long-term funds or to place in a DRIP portfolio.
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