Raymond James Financial Forecasts Strong Price Appreciation for Diversified Royalty (TSE:DIV) Stock

Key Points

• Raymond James Financial raised its price target on Diversified Royalty from C$4.70 to C$5.00 and kept an outperform rating, implying about 8.7% upside from the prior close.
• Other analysts were also generally positive: Desjardins and Canaccord Genuity both raised targets and issued buy ratings, while the overall consensus price target stands at C$5.35.
• The stock was unchanged at C$4.60 on Thursday, and recent insider selling included large share sales by directors, though the company continues to show solid recent profitability with a 49.91% net margin last quarter.

Diversified Royalty (TSE:DIV - Get Free Report) had its price target raised by Raymond James Financial from C$4.70 to C$5.00 in a research report issued to clients and investors on Thursday,BayStreet.CA reports. The firm presently has an "outperform" rating on the stock. Raymond James Financial's price target indicates a potential upside of 8.70% from the stock's previous close.

Several other equities research analysts also recently issued reports on the stock. Desjardins increased their price objective on shares of Diversified Royalty from C$4.75 to C$5.00 and gave the stock a "buy" rating in a research report on Tuesday. ATB Cormark Capital Markets cut their price objective on shares of Diversified Royalty from C$7.50 to C$7.25 and set an "outperform" rating on the stock in a research report on Tuesday. Finally, Canaccord Genuity Group upped 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. Four research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, Diversified Royalty has an average rating of "Buy" and a consensus price target of C$5.35.

Diversified Royalty Price Performance

Shares of DIV remained flat at C$4.60 on Thursday. The company had a trading volume of 247,761 shares, compared to its average volume of 413,778. The company has a quick ratio of 1.74, a current ratio of 2.84 and a debt-to-equity ratio of 103.05. The business has a fifty day moving average of C$4.65 and a two-hundred day moving average of C$4.25. Diversified Royalty has a 1-year low of C$3.20 and a 1-year high of C$4.98. The stock has a market capitalization of C$860.42 million, a price-to-earnings ratio of 23.00 and a beta of 1.11.

Diversified Royalty (TSE:DIV - Get Free Report) last posted its earnings results on Thursday, May 14th. The company reported C$0.04 earnings per share (EPS) for the quarter. Diversified Royalty had a return on equity of 12.54% and a net margin of 49.91%.The business had revenue of C$18.80 million during the quarter. As a group, equities analysts predict that Diversified Royalty will post 0.2 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Johnny Ciampi sold 152,996 shares of the company's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of C$4.77, for a total transaction of C$729,790.92. Following the sale, the director owned 839,469 shares in the company, valued at approximately C$4,004,267.13. This represents a 15.42% decrease in their ownership of the stock. Also, insider Greg Gutmanis sold 30,000 shares of the stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of C$4.85, for a total value of C$145,500.00. Following the transaction, the insider directly owned 204,185 shares of the company's stock, valued at C$990,297.25. This trade represents a 12.81% decrease in their ownership of the stock. Insiders sold a total of 330,000 shares of company stock valued at $1,576,500 in the last 90 days. 0.52% of the stock is owned by corporate 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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