Why Diamond Resorts (DRII) Stock Is Down Today

NEW YORK (TheStreet) -- Shares of Diamond Resorts Int'l (DRII) are falling 1.82% to $29.63 on heavy trading volume Monday afternoon after the company said it will delay the release of its 2016 second quarter results after an independent accountant questioned accounting practices.

The accounting firm BDO USA "has expressed the view that the company may not have correctly applied the relative sales value inventory valuation model in the preparation of its consolidated financial statements for 2014 and subsequent periods," Diamond Resorts said in a statement.

The Las Vegas-based vacation destinations company was scheduled to report its results today, MarketWatch noted. The company expects to release the results "as soon as practicable."

In late June, Diamond Resorts agreed to be bought by Apollo Global Management (APO) in a $2.2 billion deal.

"Based on our discussions with the company, we are confident this will not impact the timing of our acquisition on the terms previously announced," a representative of Apollo said in a statement.

About 4.61 million of Diamond Resorts' shares were traded so far today vs. its average 30-day volume of 3.18 million shares per day.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on Diamond Resorts stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and attractive valuation levels.

But the team also finds weaknesses including generally higher debt management risk and weak operating cash flow.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: DRII

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