Freehold Royalties (TSE:FRU) Share Price Crosses Above 200-Day Moving Average - Time to Sell?

Key Points

• Price breakout: Freehold Royalties' share price climbed above its 200-day moving average of C$15.77, trading as high as C$16.88 and last at C$16.78 on volume of 623,718.
• Dividend yield vs payout: The company declared a monthly dividend of $0.09 per share (ex-dividend Apr 30, payable May 15), implying a ~6.4% yield but a very high payout ratio of 192.86%.
• Analyst stance: Wall Street consensus is a "Hold" (one Buy, five Holds) with an average target of C$17.03 after several recent downgrades and mixed target revisions.

Freehold Royalties Ltd. (TSE:FRU - Get Free Report)'s share price passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of C$15.77 and traded as high as C$16.88. Freehold Royalties shares last traded at C$16.78, with a volume of 623,718 shares.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on FRU. National Bank Financial downgraded shares of Freehold Royalties from an "outperform" rating to a "hold" rating and set a C$15.00 price target for the company. in a research note on Friday, January 9th. Raymond James Financial downgraded shares of Freehold Royalties from a "moderate buy" rating to a "hold" rating and lifted their price target for the stock from C$17.50 to C$18.00 in a research note on Monday, March 30th. TD Securities decreased their price target on shares of Freehold Royalties from C$22.00 to C$21.00 and set a "buy" rating for the company in a research note on Thursday, March 12th. Royal Bank Of Canada lifted their price target on shares of Freehold Royalties from C$17.00 to C$18.00 and gave the stock a "sector perform" rating in a research note on Monday, April 13th. Finally, Desjardins decreased their price target on shares of Freehold Royalties from C$16.50 to C$16.00 and set a "hold" rating for the company in a research note on Friday, March 13th. One equities research analyst has rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of C$17.03.

Freehold Royalties Trading Up 1.0%

The company has a quick ratio of 1.50, a current ratio of 1.41 and a debt-to-equity ratio of 28.51. The business's fifty day simple moving average is C$17.29 and its two-hundred day simple moving average is C$15.77. The company has a market cap of C$2.75 billion, a price-to-earnings ratio of 29.96, a PEG ratio of -0.92 and a beta of 0.55.

Freehold Royalties (TSE:FRU - Get Free Report) last released its quarterly earnings data on Wednesday, March 11th. The company reported C$0.31 earnings per share for the quarter. Freehold Royalties had a net margin of 29.28% and a return on equity of 8.82%. The company had revenue of C$69.76 million for the quarter. On average, equities analysts predict that Freehold Royalties Ltd. will post 0.7581169 EPS for the current year.

Freehold Royalties Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Friday, May 15th. Shareholders of record on Friday, May 15th will be issued a dividend of $0.09 per share. The ex-dividend date of this dividend is Thursday, April 30th. This represents a c) dividend on an annualized basis and a yield of 6.4%. Freehold Royalties's dividend payout ratio (DPR) is presently 192.86%.

Insiders Place Their Bets

In related news, insider Colin Strem acquired 4,000 shares of the business's stock in a transaction on Tuesday, March 31st. The shares were bought at an average price of C$17.37 per share, with a total value of C$69,480.00. Following the completion of the acquisition, the insider owned 24,000 shares in the company, valued at C$416,880. This trade represents a 20.00% increase in their ownership of the stock. Insiders own 0.45% of the company's stock.

Freehold Royalties Company Profile

Freehold Royalties Ltd is in acquiring and managing Oil and Gas royalties. It operates in two segments: Canada, which includes exploration and evaluation assets and the petroleum and natural gas interests in Western Canada; and the United States, which includes petroleum and natural gas interests held in the Permian (Midland and Delaware), Eagle Ford, Haynesville and Bakken basins primarily located in the states of Texas, Louisiana, and North Dakota. The majority of its revenue is generated from Canada Segment.

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