Diversified Royalty (TSE:DIV) Stock Passes Above Fifty Day Moving Average - Should You Sell?

Key Points

• Shares passed above its fifty day moving average, trading as high as C$4.34 and last at C$4.30 (50‑day MA C$4.15); Desjardins raised its price target to C$4.50 and gave a "buy" rating while consensus on MarketBeat is a "Moderate Buy" with a C$4.03 target.
• The company pays a monthly dividend of C$0.0238 (ex‑dividend April 15, payable April 30), representing a 6.6% dividend yield126.79%, raising sustainability concerns.
• Diversified Royalty has a market cap of C$735.34M and a P/E of 20.48; it reported C$0.06 EPS and C$20.41M revenue for the quarter, with a 51.8% net margin and 12.7% ROE.

Shares of Diversified Royalty Corp. (TSE:DIV - Get Free Report) passed above its fifty day moving average during trading on Monday . The stock has a fifty day moving average of C$4.15 and traded as high as C$4.34. Diversified Royalty shares last traded at C$4.30, with a volume of 237,953 shares trading hands.

Wall Street Analyst Weigh In

Separately, Desjardins increased their price objective on Diversified Royalty from C$4.00 to C$4.50 and gave the company a "buy" rating in a report on Tuesday, February 10th. Two investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, Diversified Royalty presently has an average rating of "Moderate Buy" and a consensus target price of C$4.03.

Diversified Royalty Price Performance

The firm has a market capitalization of C$735.34 million, a price-to-earnings ratio of 20.48 and a beta of 1.00. The company has a fifty day moving average price of C$4.15 and a two-hundred day moving average price of C$3.86. The company has a quick ratio of 1.74, a current ratio of 0.68 and a debt-to-equity ratio of 88.76.

Diversified Royalty (TSE:DIV - Get Free Report) last posted its quarterly earnings data on Friday, March 20th. The company reported C$0.06 earnings per share for the quarter. The business had revenue of C$20.41 million during the quarter. Diversified Royalty had a return on equity of 12.71% and a net margin of 51.82%. On average, equities research analysts expect that Diversified Royalty Corp. will post 0.2 EPS for the current fiscal year.

Diversified Royalty Dividend Announcement

The company also recently disclosed a monthly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Thursday, April 30th will be issued a $0.0238 dividend. This represents a c) annualized dividend and a dividend yield of 6.6%. The ex-dividend date of this dividend is Wednesday, April 15th. Diversified Royalty's dividend payout ratio is presently 126.79%.

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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