On Tuesday, NYSE saw 77 stocks hit new 52-week highs while Nasdaq had more new lows than highs. Among the new NYSE lows was Diamond Hill Investment Group, a small-cap with $32.4 billion AUM. DHIL stock hit a new low of $114.48, raising the question of opportunity or red flag.

Diamond Hill pays a $1.50 quarterly dividend and a $4 special dividend. The company has paid out $28 in quarterly dividends and $27 in special dividends over the past five years, with an average annual total payout of $11 per share.

In 2022, Diamond Hill paid out $30.7 million in dividends and repurchased $42.2 million of its shares, giving it a shareholder yield of 13.1%. The company’s stock is down 26% in 2025, 31% over the past 12 months, and 25% over the past five years.

Between 2012 and 2018, Diamond Hill’s revenue grew annually, but since then, it’s had four down years. Its compound annual revenue growth rate was 7.1% from 2012 to 2024. The company is adding fixed-income assets and transforming its business model.

Although Diamond Hill’s revenue is stable, its profits have declined. The company’s gross profit and EBIT margins have decreased in the past year but have now stabilized. Diamond Hill recently converted one of its mutual funds to an ETF and continues to grow its fixed-income assets.

Investors are advised to take a closer look at Diamond Hill, as its business model is healthy but out of fashion with investors. The company’s diversification into fixed income and recent ETF conversion could signal a turnaround for the stock.

Read more at Yahoo Finance: Small-Cap Investment Firm Slumps to 52-Week Low: Opportunity or Red Flag?