Freehold Royalties (TSE:FRU) Trading Down 6.5% on Analyst Downgrade

Freehold Royalties Ltd. (TSE:FRU)’s share price fell 6.5% during mid-day trading on Thursday after Desjardins lowered their price target on the stock from C$16.50 to C$16.00. Desjardins currently has a hold rating on the stock. Freehold Royalties traded as low as C$15.80 and last traded at C$16.80. 455,178 shares were traded during trading, a decline of 34% from the average session volume of 692,805 shares. The stock had previously closed at C$17.97.

Several other analysts have also recently weighed in on the stock. Canadian Imperial Bank of Commerce raised their price objective on shares of Freehold Royalties from C$14.50 to C$15.25 in a research report on Friday, November 14th. TD Securities cut their target price on shares of Freehold Royalties from C$22.00 to C$21.00 and set a “buy” rating for the company in a research report on Thursday. Raymond James Financial raised Freehold Royalties from a “hold” rating to a “moderate buy” rating and increased their target price for the company from C$14.50 to C$17.50 in a research note on Tuesday, December 9th. Scotiabank raised their price target on Freehold Royalties from C$15.00 to C$16.00 and gave the company a “sector perform” rating in a research report on Tuesday, January 20th. Finally, National Bank Financial lowered Freehold Royalties from an “outperform” rating to a “hold” rating and set a C$15.00 price target for the company. in a research note on Friday, January 9th. Two analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of C$16.84.

More Freehold Royalties News

Here are the key news stories impacting Freehold Royalties this week:

• Positive Sentiment: TD Securities kept a “buy” rating while trimming its price target to C$21.00 (from C$22.00), implying ~23% upside versus the recent share price — this supports continued analyst conviction and may attract buyers. TD Securities target trimmed to C$21
• Neutral Sentiment: The company released its 2025 results and 2026 guidance; investors will be parsing production, royalty revenue, cash flow, capex plans and any dividend/distribution commentary — the guidance details will determine medium‑term sentiment. Freehold 2025 results and 2026 guidance
• Negative Sentiment: RBC downgraded FRU from “outperform” to “sector perform” and set a C$17.00 target (essentially flat vs. the recent price), a downgrade that can reduce buy‑side momentum even if the price target is near current levels. RBC downgrade to sector perform
• Negative Sentiment: Desjardins moved FRU to “hold” and cut its target to C$16.00 (from C$16.50), signaling a clearer near‑term downside view (~5.9% below the recent price) that can pressure the stock. Desjardins trims target to C$16.00

Freehold Royalties Price Performance

The company has a debt-to-equity ratio of 28.51, a current ratio of 1.41 and a quick ratio of 1.50. The firm has a market capitalization of C$2.79 billion, a P/E ratio of 21.24, a P/E/G ratio of -0.92 and a beta of 0.65. The firm’s 50 day simple moving average is C$16.59 and its two-hundred day simple moving average is C$15.08.

Freehold Royalties (TSE:FRU) last posted its quarterly earnings results on Wednesday, March 11th. The company reported C$0.31 earnings per share (EPS) for the quarter. Freehold Royalties had a net margin of 29.28% and a return on equity of 8.82%. The business had revenue of C$69.76 million during the quarter. As a group, analysts predict that Freehold Royalties Ltd. will post 0.7581169 earnings per share for the current year.

Freehold Royalties Dividend Announcement

The business also recently announced a monthly dividend, which will be paid on Monday, March 16th. Investors of record on Monday, March 16th will be issued a dividend of $0.09 per share. The ex-dividend date is Friday, February 27th. This represents a c) annualized dividend and a yield of 6.4%. Freehold Royalties’s dividend payout ratio is currently 135.00%.

Freehold Royalties Company Profile

Freehold Royalties Ltd is in acquiring and managing Oil and Gas royalties. It operates in two segments: Canada, which includes exploration and evaluation assets and the petroleum and natural gas interests in Western Canada; and the United States, which includes petroleum and natural gas interests held in the Permian (Midland and Delaware), Eagle Ford, Haynesville and Bakken basins primarily located in the states of Texas, Louisiana, and North Dakota. The majority of its revenue is generated from Canada Segment.