Diversified Royalty (TSE:DIV) Sets New 12-Month Low – Should You Sell?

Diversified Royalty Corp. (TSE:DIV)’s share price reached a new 52-week low during trading on Tuesday. The stock traded as low as C$3.43 and last traded at C$3.51, with a volume of 262,485 shares trading hands. The stock had previously closed at C$3.62.

Analyst Ratings Changes

Several analysts recently weighed in on DIV shares. ATB Cormark Capital Markets dropped their price target on Diversified Royalty from C$7.25 to C$7.00 and set an “outperform” rating for the company in a report on Friday, August 14th. Desjardins reduced their price target on Diversified Royalty from C$5.00 to C$4.75 and set a “buy” rating for the company in a research note on Friday, August 14th. Four equities research analysts have rated the stock with a Buy rating. According to data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of C$5.25.

Diversified Royalty Stock Down 3.3%

The company has a current ratio of 0.49, a quick ratio of 1.74 and a debt-to-equity ratio of 212.48. The firm’s 50 day simple moving average is C$4.07 and its two-hundred day simple moving average is C$4.28. The firm has a market cap of C$660.65 million, a price-to-earnings ratio of 20.59 and a beta of 0.90.

Diversified Royalty (TSE:DIV) last announced its earnings results on Saturday, November 7th. The company reported C$0.03 EPS for the quarter. Diversified Royalty had a net margin of 39.72% and a return on equity of 10.39%. The company had revenue of C$31.53 million for the quarter. On average, equities analysts forecast that Diversified Royalty Corp. will post 0.20 EPS for the current year.

Diversified Royalty Announces Dividend

The business also recently declared a monthly dividend, which will be paid on Monday, November 30th. Investors of record on Monday, November 30th will be given a dividend of $0.0238 per share. The ex-dividend date of this dividend is Friday, November 13th. This represents a $0.29 dividend on an annualized basis and a yield of 8.2%. Diversified Royalty’s dividend payout ratio is currently 165.69%.

Insider Buying and Selling

In related news, insider Sean Morrison acquired 12,626 shares of the company’s stock in a transaction on Friday, August 14th. The stock was purchased at an average cost of C$4.02 per share, with a total value of C$50,756.52. Following the acquisition, the insider directly owned 771,648 shares of the company’s stock, valued at approximately C$3,102,024.96. The trade was a 1.66% increase in their ownership of the stock. Also, Director Johnny Ciampi bought 100,000 shares of the business’s stock in a transaction dated Friday, August 14th. The shares were bought at an average price of C$3.99 per share, with a total value of C$399,000.00. Following the completion of the transaction, the director owned 112,767 shares in the company, valued at approximately C$449,940.33. This trade represents a 783.27% increase in their position. Corporate insiders own 0.52% of the company’s stock.

About Diversified Royalty

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.