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

Key Points

• Doman Building Materials Group shares rose above their 200-day moving average, reaching C$11.66 and last trading at C$11.56, compared with a 200-day average of C$10.43.
• Analysts maintain a positive outlook: six analysts rate the stock “Buy,” with a consensus target price of C$12.29. Recent targets range from C$12.00 to C$14.00, although Raymond James downgraded the stock to “moderate buy.”
• The company offers a 4.8% dividend yield based on a C$0.56 annualized payout, while reporting quarterly revenue of C$761.97 million and earnings of C$0.27 per share. Its high debt-to-equity ratio of 175.88 is a notable financial risk.

Shares of Doman Building Materials Group Ltd. (TSE:DBM - Get Free Report) passed above its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of C$10.43 and traded as high as C$11.66. Doman Building Materials Group shares last traded at C$11.56, with a volume of 136,542 shares trading hands.

Analysts Set New Price Targets

DBM has been the topic of several analyst reports. Raymond James Financial downgraded Doman Building Materials Group from a "strong-buy" rating to a "moderate buy" rating and set a C$12.00 target price on the stock. in a report on Monday, July 27th. Royal Bank Of Canada increased their price objective on shares of Doman Building Materials Group from C$11.00 to C$12.00 and gave the company an "outperform" rating in a research report on Thursday, April 16th. Desjardins lifted their price objective on shares of Doman Building Materials Group from C$12.00 to C$12.50 and gave the company a "buy" rating in a research note on Tuesday, May 12th. Stifel Nicolaus lifted their price objective on shares of 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, National Bank Financial boosted their target price on shares of Doman Building Materials Group from C$13.50 to C$14.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 22nd. Six research analysts have rated the stock with a Buy rating, According to MarketBeat.com, Doman Building Materials Group presently has a consensus rating of "Buy" and a consensus target price of C$12.29.

Doman Building Materials Group Stock Performance

The stock has a 50-day simple moving average of C$11.19 and a 200-day simple moving average of C$10.43. The company has a market capitalization of C$1.01 billion, a price-to-earnings ratio of 12.57 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 results on Friday, May 8th. The company reported C$0.27 earnings per share for the quarter. The business had revenue of C$761.97 million during the quarter. Doman Building Materials Group had a net margin of 2.61% and a return on equity of 12.52%. On average, analysts anticipate that Doman Building Materials Group Ltd. will post 0.8051471 earnings per share for the current year.

Doman Building Materials Group Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 15th were given a $0.14 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $0.56 annualized dividend and a dividend yield of 4.8%. Doman Building Materials Group's payout ratio is presently 60.87%.

Insider Activity

In related news, insider Darren John Alexander Gwozd purchased 5,200 shares of Doman Building Materials Group stock in a transaction dated Thursday, May 14th. The shares were acquired at an average price of C$10.35 per share, with a total value of C$53,820.00. Following the completion of the transaction, the insider owned 5,200 shares of the company's stock, valued at approximately C$53,820. This trade represents a ∞ increase in their position. Company insiders own 20.04% of the company's stock.

About Doman Building Materials Group

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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