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

Key Points

• Doman Building Materials shares recently crossed above their 200‑day moving average
• Brokerage sentiment is positive: one analyst rates DBM a Strong Buy and five rate it Buy, with an average target of C$11.64 (many targets raised to ~C$12), implying upside from current levels.
• The company pays a quarterly dividend that annualizes to C$0.56 for a ~5.5% yield with a 60.9% payout ratio; fundamentals show a P/E of 11.12 and high leverage (debt‑to‑equity 157.89), which investors should weigh as a risk.

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$9.62 and traded as high as C$10.26. Doman Building Materials Group shares last traded at C$10.23, with a volume of 147,632 shares traded.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on DBM. Desjardins lifted their target price on shares of Doman Building Materials Group from C$11.00 to C$12.00 and gave the stock a "buy" rating in a report on Monday, March 9th. Royal Bank Of Canada lifted 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. Stifel Nicolaus lifted their target price on shares of Doman Building Materials Group from C$11.50 to C$12.00 and gave the stock a "buy" rating in a report on Friday, April 17th. National Bank Financial boosted their price objective on shares of Doman Building Materials Group from C$12.00 to C$12.50 and gave the stock an "outperform" rating in a report on Monday, March 9th. Finally, Raymond James Financial boosted their price objective on shares of Doman Building Materials Group from C$11.00 to C$12.00 and gave the stock a "strong-buy" rating in a report on Monday, March 9th. One equities research analyst has rated the stock with a Strong Buy rating and five have given a Buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of C$11.64.

Doman Building Materials Group Stock Performance

The firm's fifty day moving average price is C$9.90 and its 200-day moving average price is C$9.62. The company has a current ratio of 3.22, a quick ratio of 1.11 and a debt-to-equity ratio of 157.89. The company has a market cap of C$897.82 million, a P/E ratio of 11.12 and a beta of 1.28.

Doman Building Materials Group (TSE:DBM - Get Free Report) last posted its quarterly earnings data on Thursday, March 5th. The company reported C$0.13 earnings per share (EPS) for the quarter. Doman Building Materials Group had a net margin of 2.57% and a return on equity of 12.47%. The company had revenue of C$644.23 million for the quarter. As a group, research analysts forecast that Doman Building Materials Group Ltd. will post 0.8051471 EPS for the current fiscal year.

Doman Building Materials Group Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Wednesday, April 15th were paid a $0.14 dividend. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $0.56 dividend on an annualized basis and a yield of 5.5%. Doman Building Materials Group's payout ratio is presently 60.87%.

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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