Diversified Royalty (TSE:DIV) Shares Down 9.7% – What’s Next?
by Mitch Edgeman · The Markets DailyDiversified Royalty Corp. (TSE:DIV – Get Free Report)’s stock price traded down 9.7% during trading on Thursday . The company traded as low as C$4.04 and last traded at C$4.17. 2,483,779 shares changed hands during trading, an increase of 483% from the average daily volume of 425,931 shares. The stock had previously closed at C$4.62.
Analysts Set New Price Targets
Several research firms have issued reports on DIV. Desjardins cut their price target on shares of Diversified Royalty from C$5.00 to C$4.75 and set a “buy” rating on the stock in a report on Friday. Canaccord Genuity Group increased their price objective on Diversified Royalty from C$4.75 to C$5.50 and gave the company a “buy” rating in a report on Wednesday, May 20th. Raymond James Financial boosted their target price on Diversified Royalty from C$4.70 to C$5.00 and gave the stock an “outperform” rating in a research note on Thursday, July 9th. Finally, ATB Cormark Capital Markets reduced their target price on Diversified Royalty from C$7.25 to C$7.00 and set an “outperform” rating on the stock in a research report on Friday. Four research analysts have rated the stock with a Buy rating, According to data from MarketBeat, the company has an average rating of “Buy” and an average target price of C$5.25.
Check Out Our Latest Stock Analysis on DIV
Diversified Royalty Stock Performance
The firm has a 50-day moving average of C$4.64 and a 200-day moving average of C$4.39. The company has a current ratio of 0.49, a quick ratio of 1.74 and a debt-to-equity ratio of 212.48. The stock has a market capitalization of C$759.41 million, a price-to-earnings ratio of 20.30 and a beta of 1.11.
Diversified Royalty (TSE:DIV – Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The company reported C$0.02 earnings per share for the quarter. The business had revenue of C$19.48 million for the quarter. Diversified Royalty had a return on equity of 10.39% and a net margin of 39.72%. As a group, sell-side analysts predict that Diversified Royalty Corp. will post 0.2 earnings per share for the current year.
Diversified Royalty Dividend Announcement
The firm also recently announced a monthly dividend, which will be paid on Monday, August 31st. Investors of record on Monday, August 31st will be given a dividend of $0.0238 per share. The ex-dividend date is Friday, August 14th. This represents a c) dividend on an annualized basis and a yield of 7.0%. Diversified Royalty’s payout ratio is currently 137.50%.
Insider Transactions at Diversified Royalty
In related news, insider Greg Gutmanis sold 30,000 shares of the company’s stock in a transaction dated Friday, May 29th. The stock was sold at an average price of C$4.85, for a total value of C$145,500.00. Following the completion of the transaction, the insider owned 204,185 shares of the company’s stock, valued at approximately C$990,297.25. This represents a 12.81% decrease in their position. Also, Director Johnny Ciampi sold 147,004 shares of the stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of C$4.77, for a total value of C$701,209.08. Following the transaction, the director owned 12,767 shares in the company, valued at C$60,898.59. This trade represents a 92.01% decrease in their position. Insiders sold 330,000 shares of company stock worth $1,576,500 in the last 90 days. Company insiders own 0.52% of the company’s stock.
About Diversified Royalty
Diversified Royalty Corp is a multi-royalty company. It is engaged in the business of acquiring royalties from multi-location businesses and franchisors in North America. As a part of the investment strategy, the firm always purchases trademarks of the companies it is going to acquire. The company gives its partners the benefit of full operational control of their business, participation in the growth of their company, and tax deductibility on royal payments. All of the company’s operating revenues are earned from the receipt of royalties and management fees from its Royalty Partners.