Diversified Royalty (TSE:DIV) Stock Gets Price Target Cut from Desjardins

Key Points

• Desjardins lowered its price target for Diversified Royalty from C$4.75 to C$4.50 but maintained a Buy rating; the revised target implies 27.48% upside from the share price cited in the article.
• Shares fell 2.5% to C$3.53 in Tuesday trading. Analysts’ consensus remained Buy, with an average price target of C$5.08.
• Company insiders made notable purchases in August: a director bought 100,000 shares, while an insider acquired 12,626 shares.

Diversified Royalty (TSE:DIV - Get Free Report) had its target price decreased by Desjardins from C$4.75 to C$4.50 in a research note issued on Tuesday, BayStreet reports. The brokerage currently has a "buy" rating on the stock. Desjardins's target price suggests a potential upside of 27.48% from the company's current price.

Separately, ATB Cormark Capital Markets dropped 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, August 14th. Four equities research analysts have rated the stock with a Buy rating. According to data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average price target of C$5.08.

Diversified Royalty Stock Down 2.5%

Shares of TSE DIV traded down C$0.09 during mid-day trading on Tuesday, reaching C$3.53. The company had a trading volume of 1,919,920 shares, compared to its average volume of 479,164. Diversified Royalty has a twelve month low of C$3.42 and a twelve month high of C$4.98. The company has a debt-to-equity ratio of 212.48, a quick ratio of 1.74 and a current ratio of 0.49. The stock has a market capitalization of C$666.31 million, a PE ratio of 20.76 and a beta of 0.90. The stock's 50 day moving average is C$4.07 and its 200-day moving average is C$4.28.

Diversified Royalty (TSE:DIV - Get Free Report) last announced its quarterly earnings data on Saturday, November 7th. The company reported C$0.03 earnings per share (EPS) for the quarter. The business had revenue of C$31.53 million during the quarter. Diversified Royalty had a return on equity of 10.39% and a net margin of 39.72%. As a group, equities analysts anticipate that Diversified Royalty will post 0.20 earnings per share for the current fiscal year.

Insider Activity at Diversified Royalty

In other Diversified Royalty news, insider Sean Morrison bought 12,626 shares of the firm's stock in a transaction on Friday, August 14th. The stock was bought at an average cost of C$4.02 per share, with a total value of C$50,756.52. Following the completion of the transaction, the insider directly owned 771,648 shares of the company's stock, valued at approximately C$3,102,024.96. The trade was a 1.66% increase in their position. Also, Director Johnny Ciampi purchased 100,000 shares of the company's stock in a transaction dated Friday, August 14th. The shares were acquired at an average price of C$3.99 per share, for a total transaction of C$399,000.00. Following the purchase, the director owned 112,767 shares in the company, valued at C$449,940.33. The trade was a 783.27% increase in their ownership of the stock. Insiders own 0.52% of the company's stock.

About Diversified Royalty

DIV is a multi-royalty corporation, engaged in the business of acquiring top-line royalties from well-managed multi-location businesses and franchisors in North America. DIV's objective is to acquire predictable, growing royalty streams from a diverse group of multi-location businesses and franchisors. DIV, through its subsidiary, Mr. Lube Canada Ltd., also operates the Mr. Lube + Tires franchisor business in Canada. Mr. Lube + Tires is the leading Canadian automotive service chain specializing in fast, drive-in drive-through, no-appointment-needed vehicle maintenance.

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