Diversified Royalty (TSE:DIV) Sets New 1-Year Low After Analyst Downgrade

Shares of Diversified Royalty Corp. (TSE:DIV) hit a new 52-week low on Tuesday after Raymond James Financial lowered their price target on the stock from C$5.00 to C$4.40. Raymond James Financial currently has an outperform rating on the stock. Diversified Royalty traded as low as C$3.43 and last traded at C$3.51, with a volume of 262,485 shares changing hands. The stock had previously closed at C$3.62.

Several other research firms have also recently weighed in on DIV. ATB Cormark Capital Markets reduced their price objective on Diversified Royalty from C$7.25 to C$7.00 and set an “outperform” rating for the company in a research report on Friday, August 14th. Desjardins lowered their target price on shares of Diversified Royalty from C$4.75 to C$4.50 and set a “buy” rating on the stock in a report on Tuesday. Four research analysts have rated the stock with a Buy rating. Based on data from MarketBeat.com, Diversified Royalty currently has an average rating of “Buy” and a consensus target price of C$5.08.

Insider Buying and Selling

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

Diversified Royalty Price Performance

The stock has a fifty day moving average of C$4.05 and a 200-day moving average of C$4.28. The company has a quick ratio of 1.74, a current ratio of 0.58 and a debt-to-equity ratio of 177.18. The firm has a market capitalization of C$675.75 million, a P/E ratio of 23.87 and a beta of 0.90.

Diversified Royalty (TSE:DIV) last issued its quarterly earnings data on Saturday, November 7th. The company reported C$0.03 EPS for the quarter. The firm had revenue of C$31.53 million for the quarter. Diversified Royalty had a net margin of 30.10% and a return on equity of 8.78%. Equities analysts predict that Diversified Royalty Corp. will post 0.20 EPS for the current fiscal year.

Diversified Royalty Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Monday, November 30th. Stockholders of record on Monday, November 30th will be paid a dividend of $0.0238 per share. This represents a $0.29 annualized dividend and a dividend yield of 8.0%. The ex-dividend date of this dividend is Friday, November 13th. Diversified Royalty’s dividend payout ratio is 189.45%.

Diversified Royalty Company Profile

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.