Diversified Royalty (TSE:DIV) Share Price Crosses Below 50 Day Moving Average - Here's What Happened

Key Points

• Diversified Royalty shares fell below their 50-day moving average, trading as low as C$4.09 and closing at C$4.11, below the C$4.30 average.
• Despite mixed target-price revisions, all four covering analysts rate the stock Buy, with an average price target of C$5.25.
• The company declared a monthly dividend of C$0.0238 per share, implying a 6.9% annualized yield, while insiders recently purchased shares worth approximately C$450,000 combined.

Diversified Royalty Corp. (TSE:DIV - Get Free Report)'s stock price crossed below its 50 day moving average during trading on Monday . The stock has a 50 day moving average of C$4.30 and traded as low as C$4.09. Diversified Royalty shares last traded at C$4.11, with a volume of 208,941 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. ATB Cormark Capital Markets dropped their target price on shares of Diversified Royalty from C$7.25 to C$7.00 and set an "outperform" rating on the stock in a research report on Friday, August 14th. Raymond James Financial upped their price objective on shares of Diversified Royalty from C$4.70 to C$5.00 and gave the company an "outperform" rating in a research report on Thursday, July 9th. Finally, Desjardins decreased their target price on Diversified Royalty from C$5.00 to C$4.75 and set a "buy" rating on the stock in a research report on Friday, August 14th. Four investment analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the company has an average rating of "Buy" and an average target price of C$5.25.

Diversified Royalty Price Performance

The company has a 50-day moving average of C$4.30 and a 200 day moving average of C$4.39. The company has a debt-to-equity ratio of 212.48, a quick ratio of 1.74 and a current ratio of 0.49. The firm has a market cap of C$775.79 million, a P/E ratio of 24.18 and a beta of 1.06.

Diversified Royalty (TSE:DIV - Get Free Report) last posted its quarterly earnings data on Wednesday, August 12th. The company reported C$0.02 earnings per share for the quarter. Diversified Royalty had a net margin of 39.72% and a return on equity of 10.39%. The company had revenue of C$19.48 million during the quarter. On average, sell-side analysts anticipate that Diversified Royalty Corp. will post 0.2 EPS for the current year.

Diversified Royalty Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 29th will be given a dividend of $0.0238 per share. The ex-dividend date is Tuesday, September 15th. This represents a c) annualized dividend and a dividend yield of 6.9%. Diversified Royalty's payout ratio is presently 165.69%.

Insider Activity

In other news, Director Johnny Ciampi purchased 100,000 shares of the business's stock in a transaction that occurred on Friday, August 14th. The shares were acquired at an average cost of C$3.99 per share, for a total transaction of C$399,000.00. Following the transaction, the director directly owned 112,767 shares of the company's stock, valued at approximately C$449,940.33. The trade was a 783.27% increase in their position. Also, insider Sean Morrison purchased 12,626 shares of Diversified Royalty stock in a transaction dated Friday, August 14th. The shares were purchased at an average cost of C$4.02 per share, for a total transaction of C$50,756.52. Following the completion of the transaction, the insider owned 771,648 shares of the company's stock, valued at approximately C$3,102,024.96. This represents a 1.66% increase in their ownership of the stock. Corporate insiders own 0.52% of the company's stock.

Diversified Royalty Company Profile

Diversified Royalty Corp is a multi-royalty company. It is engaged in the business of acquiring royalties from multi-location businesses and franchisors in North America. As a part of the investment strategy, the firm always purchases trademarks of the companies it is going to acquire. The company gives its partners the benefit of full operational control of their business, participation in the growth of their company, and tax deductibility on royal payments. All of the company's operating revenues are earned from the receipt of royalties and management fees from its Royalty Partners.

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