Dream Unlimited (TSE:DRM) Share Price Crosses Below Two Hundred Day Moving Average - What's Next?

Key Points

• Dream Unlimited shares fell below their 200-day moving average, trading as low as C$17.13 versus the C$18.69 average, before closing at C$17.55.
• Despite the technical weakness, analysts remain optimistic: the stock has a consensus “Buy” rating and an average price target of C$28.00, including Scotiabank’s C$25.00 target.
• The company recently paid a quarterly dividend of C$0.175 per share, equivalent to an annualized C$0.70 and a 4.0% yield; however, its dividend payout ratio is elevated at 321.43%.

Dream Unlimited Corp. (TSE:DRM - Get Free Report)'s share price crossed below its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of C$18.69 and traded as low as C$17.13. Dream Unlimited shares last traded at C$17.55, with a volume of 78,789 shares trading hands.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. Scotiabank raised Dream Unlimited to a "strong-buy" rating in a report on Thursday, September 10th. Scotia set a C$25.00 price target on Dream Unlimited and gave the company a "sector outperform" rating in a research note on Thursday, September 10th. One equities research analyst has rated the stock with a Strong Buy rating and three have assigned a Buy rating to the company's stock. Based on data from MarketBeat, Dream Unlimited currently has a consensus rating of "Buy" and an average price target of C$28.00.

Dream Unlimited Stock Performance

The company has a debt-to-equity ratio of 145.27, a quick ratio of 0.67 and a current ratio of 209.05. The stock's 50 day moving average price is C$17.63 and its 200 day moving average price is C$18.69. The company has a market capitalization of C$736.10 million, a P/E ratio of 83.57 and a beta of 1.40.

Dream Unlimited (TSE:DRM - Get Free Report) last posted its earnings results on Tuesday, August 11th. The company reported C($0.02) EPS for the quarter. Dream Unlimited had a return on equity of 0.61% and a net margin of 1.87%. The business had revenue of C$0.07 million for the quarter. As a group, equities analysts expect that Dream Unlimited Corp. will post 1.95 EPS for the current year.

Dream Unlimited Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 30th were given a dividend of $0.1750 per share. This represents a $0.70 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date of this dividend was Tuesday, September 15th. Dream Unlimited's dividend payout ratio is currently 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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