Diversified Royalty (TSE:DIV) Stock Price Down 9.7% – Time to Sell?

Diversified Royalty Corp. (TSE:DIV) traded down 9.7% during trading on Thursday . The company traded as low as C$4.04 and last traded at C$4.17. 2,483,779 shares traded hands during trading, an increase of 483% from the average daily volume of 425,931 shares. The stock had previously closed at C$4.62.

Analysts Set New Price Targets

Several research analysts have weighed in on DIV shares. Canaccord Genuity Group raised their price objective on shares of Diversified Royalty from C$4.75 to C$5.50 and gave the stock a “buy” rating in a report on Wednesday, May 20th. ATB Cormark Capital Markets reduced their price target 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, July 7th. Raymond James Financial lifted their price target on Diversified Royalty from C$4.70 to C$5.00 and gave the stock an “outperform” rating in a research note on Thursday, July 9th. Finally, Desjardins boosted their price objective on Diversified Royalty from C$4.75 to C$5.00 and gave the company a “buy” rating in a report on Tuesday, July 7th. Four investment analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of C$5.35.

Diversified Royalty Stock Performance

The company has a current ratio of 2.84, a quick ratio of 1.74 and a debt-to-equity ratio of 103.05. The firm has a market capitalization of C$768.77 million, a price-to-earnings ratio of 20.55 and a beta of 1.11. The company has a 50-day moving average of C$4.66 and a 200-day moving average of C$4.39.

Diversified Royalty (TSE:DIV) last released its quarterly earnings data on Wednesday, August 12th. The company reported C$0.02 EPS for the quarter. The firm had revenue of C$19.48 million during the quarter. Diversified Royalty had a net margin of 49.91% and a return on equity of 12.54%. On average, equities research analysts forecast that Diversified Royalty Corp. will post 0.2 earnings per share for the current fiscal year.

Diversified Royalty Announces Dividend

The firm also recently declared a monthly dividend, which will be paid on Monday, August 31st. Stockholders of record on Monday, August 31st will be issued a $0.0238 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a c) annualized dividend and a dividend yield of 6.9%. Diversified Royalty’s payout ratio is 137.50%.

Insider Transactions at Diversified Royalty

In related news, insider Greg Gutmanis sold 30,000 shares of the business’s stock in a transaction dated Friday, May 29th. The shares were sold at an average price of C$4.85, for a total transaction of C$145,500.00. Following the completion of the sale, the insider owned 204,185 shares of the company’s stock, valued at C$990,297.25. This represents a 12.81% decrease in their position. Also, Director Johnny Ciampi sold 147,004 shares of the 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$701,209.08. Following the sale, the director owned 12,767 shares in the company, valued at approximately C$60,898.59. This trade represents a 92.01% decrease in their position. In the last ninety days, insiders have sold 330,000 shares of company stock valued at $1,576,500. Insiders own 0.52% of the company’s stock.

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.