Diversified Royalty (TSE:DIV) Price Target Lowered to C$7.00 at ATB Cormark Capital Markets

Key Points

• ATB Cormark lowered Diversified Royalty’s price target to C$7.00 from C$7.25 while maintaining an “outperform” rating, implying 74.56% upside from the prior close.
• Analyst sentiment remains positive: four analysts rate the stock “Buy,” with an average target price of C$5.25. Other firms set targets between C$4.75 and C$5.50.
• The shares closed at C$4.01 after trading down C$0.07, while recent quarterly results showed C$0.02 EPS and C$19.48 million in revenue; insiders have sold 330,000 shares worth approximately C$1.58 million over the past three months.

Diversified Royalty (TSE:DIV - Get Free Report) had its price objective decreased by equities research analysts at ATB Cormark Capital Markets from C$7.25 to C$7.00 in a report issued on Friday,BayStreet.CA reports. The brokerage presently has an "outperform" rating on the stock. ATB Cormark Capital Markets' price target would suggest a potential upside of 74.56% from the company's previous close.

A number of other brokerages have also weighed in on DIV. Desjardins dropped their price objective on Diversified Royalty from C$5.00 to C$4.75 and set a "buy" rating on the stock in a report on Friday. Raymond James Financial raised their target price on Diversified Royalty from C$4.70 to C$5.00 and gave the company an "outperform" rating in a report on Thursday, July 9th. Finally, Canaccord Genuity Group upped their price target on shares of Diversified Royalty from C$4.75 to C$5.50 and gave the stock a "buy" rating in a research note on Wednesday, May 20th. Four analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, Diversified Royalty presently has an average rating of "Buy" and an average target price of C$5.25.

Diversified Royalty Stock Performance

TSE DIV traded down C$0.07 during trading hours on Friday, hitting C$4.01. 2,934,832 shares of the stock were exchanged, compared to its average volume of 454,181. The company has a quick ratio of 1.74, a current ratio of 2.84 and a debt-to-equity ratio of 103.05. The company has a market cap of C$750.06 million, a price-to-earnings ratio of 20.05 and a beta of 1.11. Diversified Royalty has a 12-month low of C$3.37 and a 12-month high of C$4.98. The stock has a 50-day moving average of C$4.65 and a 200 day moving average of C$4.39.

Diversified Royalty (TSE:DIV - Get Free Report) last released its earnings results on Wednesday, August 12th. The company reported C$0.02 earnings per share (EPS) for the quarter. The company had revenue of C$19.48 million for the quarter. Diversified Royalty had a return on equity of 12.54% and a net margin of 49.91%. As a group, equities research analysts forecast that Diversified Royalty will post 0.2 earnings per share for the current year.

Insider Activity at Diversified Royalty

In related news, insider Greg Gutmanis sold 30,000 shares of the company's stock in a transaction that occurred on 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 sale, the insider owned 204,185 shares in the company, valued at C$990,297.25. This represents a 12.81% decrease in their position. Also, Director Johnny Ciampi sold 147,004 shares of the firm's 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 completion of the transaction, the director directly owned 12,767 shares of the company's stock, valued at C$60,898.59. The trade was a 92.01% decrease in their ownership of the stock. Insiders have sold a total of 330,000 shares of company stock worth $1,576,500 in the last three months. Corporate insiders own 0.52% of the company's stock.

Diversified Royalty Company Profile

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.

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