Raymond James Financial Has Lowered Expectations for Diversified Royalty (TSE:DIV) Stock Price

Key Points

• Raymond James cut its price target for Diversified Royalty to C$4.40 from C$5.00 but maintained an “outperform” rating, implying 24.65% upside from the current share price.
• Other analysts also lowered their targets, though the consensus remains “Buy,” with an average price target of C$5.08; four analysts rate the stock a Buy.
• Diversified Royalty shares traded at C$3.53, near their 12-month low of C$3.42. Insiders, including a director, recently bought shares.

Diversified Royalty (TSE:DIV - Get Free Report) had its price target cut by Raymond James Financial from C$5.00 to C$4.40 in a note issued to investors on Tuesday, BayStreet reports. The firm presently has an "outperform" rating on the stock. Raymond James Financial's price target would indicate a potential upside of 24.65% from the company's current price.

Other analysts have also recently issued research reports about the stock. Desjardins dropped their price objective on shares of Diversified Royalty from C$4.75 to C$4.50 and set a "buy" rating for the company in a research note on Tuesday. ATB Cormark Capital Markets decreased their target price on shares of Diversified Royalty from C$7.25 to C$7.00 and set an "outperform" rating on the stock in a research note on Friday, August 14th. Four research analysts have rated the stock with a Buy rating. Based on data from MarketBeat, Diversified Royalty presently has an average rating of "Buy" and an average price target of C$5.08.

Diversified Royalty Price Performance

TSE DIV traded down C$0.09 during mid-day trading on Tuesday, hitting C$3.53. The stock had a trading volume of 1,919,920 shares, compared to its average volume of 479,164. The firm's 50 day moving average is C$4.07 and its 200 day moving average is C$4.28. 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 current ratio of 0.49 and a quick ratio of 1.74. The stock has a market capitalization of C$666.31 million, a price-to-earnings ratio of 20.76 and a beta of 0.90.

Diversified Royalty (TSE:DIV - Get Free Report) last released its earnings results 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 net margin of 39.72% and a return on equity of 10.39%. Equities research analysts forecast that Diversified Royalty will post 0.20 earnings per share for the current fiscal year.

Insider Buying and Selling at Diversified Royalty

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

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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