ATB Cormark Capital Markets Issues Pessimistic Forecast for Diversified Royalty (TSE:DIV) Stock Price

Diversified Royalty (TSE:DIV) had its price target cut by equities researchers at ATB Cormark Capital Markets from C$7.50 to C$7.25 in a note issued to investors on Tuesday,BayStreet.CA reports. The brokerage presently has an “outperform” rating on the stock. ATB Cormark Capital Markets’ target price points to a potential upside of 56.59% from the stock’s current price.

Other equities research analysts have also recently issued reports about the company. Canaccord Genuity Group lifted their price objective on Diversified Royalty from C$4.75 to C$5.50 and gave the stock a “buy” rating in a research note on Wednesday, May 20th. Desjardins raised their target price on Diversified Royalty from C$4.75 to C$5.00 and gave the stock a “buy” rating in a report on Tuesday. Finally, Raymond James Financial boosted their target price on Diversified Royalty from C$4.25 to C$4.70 and gave the stock an “outperform” rating in a research report on Wednesday, May 20th. Four equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company has a consensus rating of “Buy” and a consensus target price of C$5.29.

Diversified Royalty Trading Down 1.3%

DIV stock traded down C$0.06 during midday trading on Tuesday, reaching C$4.63. The company’s stock had a trading volume of 477,757 shares, compared to its average volume of 413,893. The business’s 50-day simple moving average is C$4.63 and its 200-day simple moving average is C$4.24. The company has a quick ratio of 1.74, a current ratio of 2.84 and a debt-to-equity ratio of 103.05. Diversified Royalty has a 52 week low of C$3.20 and a 52 week high of C$4.98. The stock has a market cap of C$808.90 million, a PE ratio of 23.15 and a beta of 1.11.

Diversified Royalty (TSE:DIV) last issued its earnings results on Thursday, May 14th. The company reported C$0.04 EPS for the quarter. The company had revenue of C$18.80 million during the quarter. Diversified Royalty had a net margin of 49.91% and a return on equity of 12.54%. As a group, sell-side analysts expect that Diversified Royalty will post 0.2 EPS for the current year.

Insider Activity

In other news, insider Greg Gutmanis sold 30,000 shares of the stock in a transaction on 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 ownership of the stock. Also, Director Johnny Ciampi sold 147,004 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$701,209.08. Following the completion of the sale, the director directly owned 12,767 shares in the company, valued at C$60,898.59. This represents a 92.01% decrease in their position. Insiders sold 330,000 shares of company stock valued at $1,576,500 over the last 90 days. Corporate insiders own 0.52% of the company’s stock.

Diversified Royalty Company Profile

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.