Dream Unlimited (TSE:DRM) Reaches New 12-Month Low - Should You Sell?

Key Points

• Dream Unlimited shares fell to a new 52-week low, trading as low as C$16.02 and last changing hands at C$16.27. The stock is below both its 50-day and 200-day moving averages.
• Despite the decline, analysts remain positive: Dream Unlimited has a consensus “Buy” rating and an average price target of C$28.00, substantially above its recent trading level.
• The company pays a quarterly dividend of C$0.175, or C$0.70 annually, representing a 4.3% yield; however, its dividend payout ratio is elevated at 321.43%.

Dream Unlimited Corp. (TSE:DRM - Get Free Report)'s stock price reached a new 52-week low on Tuesday. The company traded as low as C$16.02 and last traded at C$16.27, with a volume of 24857 shares changing hands. The stock had previously closed at C$16.28.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. Scotiabank raised shares of Dream Unlimited to a "strong-buy" rating in a report on Thursday, September 10th. Scotia set a C$25.00 price objective on shares of Dream Unlimited and gave the company a "sector outperform" rating in a research report on Thursday, September 10th. One investment analyst has rated the stock with a Strong Buy rating and three have issued a Buy rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Buy" and an average target price of C$28.00.

Dream Unlimited Stock Performance

The firm has a market capitalization of C$682.41 million, a price-to-earnings ratio of 77.48 and a beta of 1.40. The company has a current ratio of 209.05, a quick ratio of 0.67 and a debt-to-equity ratio of 145.27. The stock's 50-day moving average is C$18.27 and its 200-day moving average is C$18.81.

Dream Unlimited (TSE:DRM - Get Free Report) last issued its earnings results on Tuesday, August 11th. The company reported C($0.02) earnings per share for the quarter. The company had revenue of C$0.07 million during the quarter. Dream Unlimited had a net margin of 1.87% and a return on equity of 0.61%. On average, analysts predict that Dream Unlimited Corp. will post 1.9481391 EPS for the current fiscal year.

Dream Unlimited Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 30th were issued a $0.1750 dividend. This represents a $0.70 dividend on an annualized basis and a yield of 4.3%. The ex-dividend date of this dividend was Tuesday, September 15th. Dream Unlimited's dividend payout ratio is presently 321.43%.

Dream Unlimited Company Profile

Dream is a leading real estate developer and has an established and successful asset management business, inclusive of $28 billion of assets under management (1) across three Toronto Stock Exchange ('TSX') listed trusts, our private asset management business and numerous partnerships. We develop land and housing in our master planned communities in Western Canada and hold a growing portfolio of income generating properties across Canada. Dream expects this area of our business to grow as investment properties under construction are completed and held for the long-term.

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