Diversified Royalty (TSE:DIV) Hits New 52-Week High – Should You Buy?

Diversified Royalty Corp. (TSE:DIV) reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as C$4.98 and last traded at C$4.89, with a volume of 297856 shares trading hands. The stock had previously closed at C$4.92.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on DIV shares. Raymond James Financial lifted their price objective on shares of Diversified Royalty from C$4.25 to C$4.70 and gave the company an “outperform” rating in a research note on Wednesday, May 20th. Desjardins raised their price target on Diversified Royalty from C$4.50 to C$4.75 and gave the stock a “buy” rating in a report on Tuesday, May 19th. Canaccord Genuity Group boosted their price objective on Diversified Royalty from C$4.75 to C$5.50 and gave the company a “buy” rating in a research note on Wednesday, May 20th. Finally, ATB Cormark Capital Markets increased their price objective on Diversified Royalty from C$5.00 to C$5.50 and gave the stock an “outperform” rating in a report on Thursday, May 21st. Four equities research analysts have rated the stock with a Buy rating, Based on data from MarketBeat, the company has an average rating of “Buy” and an average price target of C$4.89.

Diversified Royalty Trading Down 0.8%

The firm’s 50 day moving average is C$4.56 and its 200 day moving average is C$4.18. The company has a debt-to-equity ratio of 103.05, a current ratio of 2.84 and a quick ratio of 1.74. The company has a market cap of C$850.83 million, a PE ratio of 24.35 and a beta of 1.06.

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

Diversified Royalty Dividend Announcement

The firm also recently disclosed a monthly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 30th will be paid a dividend of $0.0238 per share. The ex-dividend date of this dividend is Monday, June 15th. This represents a c) annualized dividend and a yield of 5.9%. Diversified Royalty’s dividend payout ratio (DPR) is currently 137.50%.

Insider Activity

In other news, insider Greg Gutmanis sold 30,000 shares of Diversified Royalty stock in a transaction dated Friday, May 29th. The stock was 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 in the company, valued at approximately C$990,297.25. This trade represents a 12.81% decrease in their position. Also, Director Johnny Ciampi sold 152,996 shares of Diversified Royalty stock in a transaction dated Monday, June 8th. The shares were sold at an average price of C$4.77, for a total value of C$729,790.92. Following the sale, the director owned 839,469 shares of the company’s stock, valued at approximately C$4,004,267.13. This trade represents a 15.42% decrease in their position. Over the last 90 days, insiders have sold 330,000 shares of company stock valued at $1,576,500. 0.52% of the stock is owned by company 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.