Diversified Royalty (TSE:DIV) Hits New 12-Month High – Should You Buy?

Diversified Royalty Corp. (TSE:DIV)’s share price hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as C$3.03 and last traded at C$3.03, with a volume of 28577 shares. The stock had previously closed at C$3.02.

Analysts Set New Price Targets

DIV has been the topic of several research analyst reports. Ventum Financial set a C$4.00 target price on Diversified Royalty and gave the company a “buy” rating in a research note on Tuesday, September 24th. Ventum Cap Mkts raised shares of Diversified Royalty to a “strong-buy” rating in a research report on Tuesday, September 24th. Two equities research analysts have rated the stock with a hold rating, two have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of C$3.80.

Diversified Royalty Price Performance

The company has a debt-to-equity ratio of 89.69, a current ratio of 5.73 and a quick ratio of 1.74. The business has a 50 day simple moving average of C$2.85 and a 200 day simple moving average of C$2.81. The stock has a market cap of C$499.66 million, a PE ratio of 14.38 and a beta of 1.57.

Diversified Royalty (TSE:DIV) last announced its quarterly earnings results on Friday, August 9th. The company reported C$0.05 EPS for the quarter, meeting the consensus estimate of C$0.05. The business had revenue of C$16.78 million during the quarter, compared to analysts’ expectations of C$17.50 million. Diversified Royalty had a return on equity of 12.02% and a net margin of 51.17%. On average, equities research analysts forecast that Diversified Royalty Corp. will post 0.2 EPS for the current fiscal year.

Diversified Royalty Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Thursday, October 31st. Stockholders of record on Thursday, October 31st will be issued a dividend of $0.021 per share. The ex-dividend date is Tuesday, October 15th. This represents a $0.25 dividend on an annualized basis and a dividend yield of 8.34%. Diversified Royalty’s dividend payout ratio is currently 119.05%.

Diversified Royalty Company Profile

Diversified Royalty Corp., a multi-royalty corporation, engages in the acquisition of royalties from multi-location businesses and franchisors in North America. It owns the Sutton, Mr. Lube + Tires, AIR MILES, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions, and BarBurrito trademarks.