Diversified Royalty (TSE:DIV) Stock Price Breaks Above 50 Day Moving Average – Time to Sell?

Diversified Royalty Corp. (TSE:DIV)’s stock price passed above its fifty day moving average during trading on Thursday. The stock has a fifty day moving average of C$4.08 and traded as high as C$4.12. Diversified Royalty shares last traded at C$4.10, with a volume of 667,429 shares changing hands.

Analyst Ratings Changes

A number of research firms recently issued reports on DIV. ATB Cormark Capital Markets cut 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 decreased their price objective on shares of Diversified Royalty from C$5.00 to C$4.75 and set a “buy” rating on the stock in a report on Friday, August 14th. Finally, Raymond James Financial raised their price objective on shares of Diversified Royalty from C$4.70 to C$5.00 and gave the company an “outperform” rating in a research report on Thursday, July 9th. Four equities research analysts have rated the stock with a Buy rating. Based on data from MarketBeat, the company has a consensus rating of “Buy” and a consensus target price of C$5.25.

Diversified Royalty Price Performance

The stock has a market capitalization of C$770.12 million, a P/E ratio of 24.00 and a beta of 0.95. The company has a debt-to-equity ratio of 212.48, a quick ratio of 1.74 and a current ratio of 0.49. The stock has a 50-day simple moving average of C$4.08 and a 200 day simple moving average of C$4.28.

Diversified Royalty (TSE:DIV) last released its earnings results on Wednesday, August 12th. The company reported C$0.02 earnings per share for the quarter. The company had revenue of C$19.48 million during the quarter. Diversified Royalty had a return on equity of 10.39% and a net margin of 39.72%. On average, equities analysts forecast that Diversified Royalty Corp. will post 0.20 earnings per share for the current fiscal year.

Diversified Royalty Announces Dividend

The company also recently disclosed a monthly dividend, which was paid on Friday, October 30th. Shareholders of record on Friday, October 30th were issued a dividend of $0.0238 per share. This represents a $0.29 annualized dividend and a yield of 7.0%. The ex-dividend date of this dividend was Thursday, October 15th. Diversified Royalty’s payout ratio is currently 165.69%.

Insider Transactions at Diversified Royalty

In other Diversified Royalty news, Director Johnny Ciampi purchased 100,000 shares of the stock in a transaction dated Friday, August 14th. The stock was bought at an average price of C$3.99 per share, for a total transaction of C$399,000.00. Following the transaction, the director directly owned 112,767 shares in the company, valued at C$449,940.33. This represents a 783.27% increase in their ownership of the stock. Also, insider Sean Morrison purchased 12,626 shares of the stock in a transaction dated Friday, August 14th. The shares were acquired at an average price of C$4.02 per share, with a total value 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 ownership of the stock. 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.