Diversified Royalty (TSE:DIV) Share Price Passes Below 200 Day Moving Average - Here's What Happened

Key Points

• Diversified Royalty shares fell below their 200-day moving average, trading as low as C$4.08 and closing at C$4.11 versus the C$4.40 long-term average.
• Despite the technical weakness, all four covering analysts maintain positive ratings, producing a consensus “Buy” rating and an average price target of C$5.25.
• The company reported quarterly revenue of C$19.48 million and EPS of C$0.02, while declaring a monthly dividend yielding approximately 6.9%; two insiders also purchased shares in August.

Diversified Royalty Corp. (TSE:DIV - Get Free Report)'s stock price passed below its 200-day moving average during trading on Friday . The stock has a 200-day moving average of C$4.40 and traded as low as C$4.08. Diversified Royalty shares last traded at C$4.11, with a volume of 195,153 shares trading hands.

Analysts Set New Price Targets

Several equities analysts recently issued reports on DIV shares. 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 note on Friday, August 14th. Canaccord Genuity Group boosted their target price on shares of Diversified Royalty from C$4.75 to C$5.50 and gave the stock a "buy" rating in a research note on Wednesday, May 20th. ATB Cormark Capital Markets dropped their price target on shares of Diversified Royalty from C$7.25 to C$7.00 and set an "outperform" rating on the stock in a research note on Friday, August 14th. Finally, Raymond James Financial lifted their price target on Diversified Royalty from C$4.70 to C$5.00 and gave the stock an "outperform" rating in a research report on Thursday, July 9th. Four equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus target price of C$5.25.

Diversified Royalty Stock Performance

The company has a market cap of C$775.79 million, a PE ratio of 24.18 and a beta of 1.06. 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 stock's 50-day simple moving average is C$4.36 and its 200 day simple moving average is C$4.40.

Diversified Royalty (TSE:DIV - Get Free Report) last issued its earnings results 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 business had revenue of C$19.48 million for the quarter. As a group, equities analysts anticipate that Diversified Royalty Corp. will post 0.2 EPS for the current year.

Diversified Royalty Announces Dividend

The company also recently disclosed a monthly dividend, which will be paid on Tuesday, September 29th. Investors of record on Tuesday, September 29th will be given a $0.0238 dividend. The ex-dividend date is Tuesday, September 15th. This represents a c) dividend on an annualized basis and a yield of 6.9%. Diversified Royalty's dividend payout ratio (DPR) is presently 165.69%.

Insider Buying and Selling

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

About Diversified Royalty

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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