Diversified Royalty (TSE:DIV) Stock Price Breaks Above 50 Day Moving Average - Time to Sell?

Key Points

• Diversified Royalty shares rose above their 50-day moving average, reaching C$4.12 and last trading at C$4.10, though still below the 200-day average of C$4.28.
• Analysts remain positive, with four Buy ratings and a consensus price target of C$5.25; recent targets range from C$4.75 to C$7.00.
• The company announced a monthly dividend of C$0.0238 per share, equivalent to an annualized yield of about 7.0%, while insiders recently purchased shares. However, its payout ratio is high at 165.69% and debt-to-equity stands at 212.48.

Diversified Royalty Corp. (TSE:DIV - Get Free Report) crossed above its 50-day moving average during trading on Thursday. The stock has a 50-day moving average of C$4.08 and traded as high as C$4.12. Diversified Royalty shares last traded at C$4.10, with a volume of 667,429 shares.

Analyst Ratings Changes

Several research analysts recently issued reports on DIV shares. Raymond James Financial increased their price target on shares of Diversified Royalty from C$4.70 to C$5.00 and gave the stock an "outperform" rating in a report on Thursday, July 9th. Desjardins dropped their price target on Diversified Royalty from C$5.00 to C$4.75 and set a "buy" rating for the company in a research report on Friday, August 14th. Finally, ATB Cormark Capital Markets cut their price target on Diversified Royalty from C$7.25 to C$7.00 and set an "outperform" rating for the company in a research note on Friday, August 14th. Four investment analysts have rated the stock with a Buy rating. According to MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of C$5.25.

Diversified Royalty Stock Performance

The firm has a market cap of C$773.90 million, a PE ratio of 24.12 and a beta of 0.95. The stock has a 50-day moving average price of C$4.08 and a 200 day moving average price of C$4.28. The company has a debt-to-equity ratio of 212.48, a current ratio of 0.49 and a quick ratio of 1.74.

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 return on equity of 10.39% and a net margin of 39.72%. The firm had revenue of C$19.48 million for the quarter. Research analysts forecast that Diversified Royalty Corp. will post 0.20 earnings per share for the current year.

Diversified Royalty Dividend Announcement

The firm also recently announced a monthly dividend, which will be paid on Friday, October 30th. Stockholders of record on Friday, October 30th will be given a dividend of $0.0238 per share. This represents a $0.29 dividend on an annualized basis and a dividend yield of 7.0%. The ex-dividend date of this dividend is Thursday, October 15th. Diversified Royalty's payout ratio is presently 165.69%.

Insider Activity at Diversified Royalty

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

About Diversified Royalty

DIV is a multi-royalty corporation, engaged in the business of acquiring top-line royalties from well-managed multi-location businesses and franchisors in North America. DIV's objective is to acquire predictable, growing royalty streams from a diverse group of multi-location businesses and franchisors. DIV, through its subsidiary, Mr. Lube Canada Ltd., also operates the Mr. Lube + Tires franchisor business in Canada. Mr. Lube + Tires is the leading Canadian automotive service chain specializing in fast, drive-in drive-through, no-appointment-needed vehicle maintenance.

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