Freehold Royalties (TSE:FRU) Stock Price Crosses Above 200 Day Moving Average - Should You Sell?

Key Points

• Freehold Royalties' share price climbed above its 200‑day moving average, trading as high as C$17.63 and last at C$17.50 versus the 200‑day MA of C$15.22, on roughly 3.7M shares — a bullish technical signal.
• Analysts hold a consensus rating of Hold with a consensus target of C$16.84 and several recent downgrades/price cuts, implying limited analyst upside relative to the current price.
• The company pays a monthly dividend of C$0.09 (about 6.2% yield) but has a dividend payout ratio of 192.86%, suggesting the dividend may be unsustainably high.

Freehold Royalties Ltd. (TSE:FRU - Get Free Report)'s share price passed above its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of C$15.22 and traded as high as C$17.63. Freehold Royalties shares last traded at C$17.50, with a volume of 3,713,113 shares trading hands.

Analyst Ratings Changes

Several analysts have issued reports on the company. TD Securities cut their price objective on Freehold Royalties from C$22.00 to C$21.00 and set a "buy" rating on the stock in a research note on Thursday, March 12th. Royal Bank Of Canada lowered Freehold Royalties from a "moderate buy" rating to a "hold" rating and set a C$17.00 target price for the company. in a research report on Friday, March 13th. Scotiabank upped their price target on Freehold Royalties from C$15.00 to C$16.00 and gave the company a "sector perform" rating in a research report on Tuesday, January 20th. Desjardins reduced their price objective on Freehold Royalties from C$16.50 to C$16.00 and set a "hold" rating on the stock in a research note on Friday, March 13th. Finally, National Bank Financial downgraded shares of Freehold Royalties from an "outperform" rating to a "hold" rating and set a C$15.00 price objective for the company. in a report on Friday, January 9th. Two equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of C$16.84.

Freehold Royalties Price Performance

The company has a debt-to-equity ratio of 28.51, a current ratio of 1.41 and a quick ratio of 1.50. The stock has a market capitalization of C$2.87 billion, a price-to-earnings ratio of 31.25, a PEG ratio of -0.92 and a beta of 0.65. The stock's 50 day simple moving average is C$16.85 and its 200-day simple moving average is C$15.22.

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

Freehold Royalties Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Wednesday, April 15th. Investors of record on Wednesday, April 15th will be paid a $0.09 dividend. This represents a c) dividend on an annualized basis and a dividend yield of 6.2%. The ex-dividend date of this dividend is Tuesday, March 31st. Freehold Royalties's dividend payout ratio (DPR) is presently 192.86%.

About Freehold Royalties

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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