Doman Building Materials Group (TSE:DBM) Shares Pass Above 200 Day Moving Average - Should You Sell?

Key Points

• Doman Building Materials Group shares moved above their 200-day moving average, trading as high as C$11.40 and last changing hands at C$11.21. The move comes as the stock continues to attract market attention on technical strength.
• Analysts turned more bullish on the stock, with several firms raising price targets and maintaining Buy/Outperform ratings. MarketBeat data shows an average rating of Buy and an average target price of C$12.21.
• The company recently reported solid quarterly results and declared a dividend. It posted C$0.27 EPS on revenue of C$761.97 million and announced a quarterly dividend of C$0.14, implying a 5.0% annualized yield.

Doman Building Materials Group Ltd. (TSE:DBM - Get Free Report) shares passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of C$10.18 and traded as high as C$11.40. Doman Building Materials Group shares last traded at C$11.21, with a volume of 175,444 shares.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. National Bank Financial increased their target price on Doman Building Materials Group from C$12.50 to C$13.50 and gave the company an "outperform" rating in a report on Tuesday, May 12th. Desjardins boosted their price objective on Doman Building Materials Group from C$12.00 to C$12.50 and gave the company a "buy" rating in a research report on Tuesday, May 12th. Stifel Nicolaus increased their price objective on Doman Building Materials Group from C$12.00 to C$12.25 and gave the company a "buy" rating in a research note on Tuesday, May 12th. Finally, Royal Bank Of Canada raised their target price on shares of Doman Building Materials Group from C$11.00 to C$12.00 and gave the stock an "outperform" rating in a report on Thursday, April 16th. One investment analyst has rated the stock with a Strong Buy rating and five have issued a Buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average target price of C$12.21.

Doman Building Materials Group Stock Performance

The business has a fifty day moving average of C$10.74 and a 200-day moving average of C$10.18. The company has a market cap of C$983.82 million, a PE ratio of 12.18 and a beta of 1.51. The company has a current ratio of 3.94, a quick ratio of 1.11 and a debt-to-equity ratio of 175.88.

Doman Building Materials Group (TSE:DBM - Get Free Report) last released its quarterly earnings data on Friday, May 8th. The company reported C$0.27 earnings per share for the quarter. Doman Building Materials Group had a return on equity of 12.52% and a net margin of 2.61%.The business had revenue of C$761.97 million during the quarter. Equities research analysts anticipate that Doman Building Materials Group Ltd. will post 0.8051471 earnings per share for the current fiscal year.

Doman Building Materials Group Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Wednesday, July 15th will be issued a $0.14 dividend. The ex-dividend date is Tuesday, June 30th. This represents a $0.56 annualized dividend and a yield of 5.0%. Doman Building Materials Group's payout ratio is 60.87%.

Insider Transactions at Doman Building Materials Group

In related news, insider Darren John Alexander Gwozd acquired 5,200 shares of the firm's stock in a transaction on Thursday, May 14th. The stock was acquired at an average cost of C$10.35 per share, for a total transaction of C$53,820.00. Following the acquisition, the insider owned 5,200 shares of the company's stock, valued at C$53,820. This trade represents a ∞ increase in their ownership of the stock. Insiders own 20.04% of the company's stock.

Doman Building Materials Group Company Profile

Doman Building Materials Group Ltd is a wholesale distributor of building materials and home renovation products. The company services the new home construction, home renovation and industrial markets by supplying the retail and wholesale lumber and building materials industry, hardware stores, industrial and furniture manufacturers and similar concerns. Its operations also include timber ownership and management of private timberlands and forest licenses, and agricultural post-peeling and pressure treating through CanWel Fibre Corp.

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