Black Hills Corporation (NYSE:BKH) Receives Average Rating of "Buy" from Brokerages

Key Points

• Analyst sentiment is positive: All six covering firms rate Black Hills “Buy,” with an average 12-month price target of approximately $81.67 versus the stock’s $74.66 opening price.
• Quarterly earnings exceeded expectations: Black Hills reported EPS of $0.54, beating the $0.41 consensus estimate, while revenue rose 3.1% year over year to $452.8 million but fell short of forecasts.
• Dividend remains attractive: The company announced a quarterly dividend of $0.703 per share, equating to $2.81 annually and a 3.8% yield; institutional investors own 86.71% of outstanding shares.

Black Hills Corporation (NYSE:BKH - Get Free Report) has earned an average recommendation of "Buy" from the six research firms that are covering the stock, MarketBeat.com reports. Six investment analysts have rated the stock with a buy recommendation. The average 12 month price target among analysts that have issued a report on the stock in the last year is $81.6667.

A number of analysts have commented on the company. Wall Street Zen upgraded Black Hills from a "sell" rating to a "hold" rating in a research report on Saturday. Oppenheimer set a $78.00 price objective on Black Hills in a research report on Thursday, June 11th. Bank of America boosted their price objective on Black Hills from $78.00 to $87.00 and gave the company a "buy" rating in a research note on Friday, July 10th. BMO Capital Markets reduced their target price on shares of Black Hills from $86.00 to $85.00 and set an "outperform" rating for the company in a report on Wednesday, July 22nd. Finally, Weiss Ratings upgraded shares of Black Hills from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, July 24th.

Insider Activity

In related news, Director Robert P. Otto sold 4,109 shares of the firm's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $74.22, for a total transaction of $304,969.98. Following the completion of the transaction, the director directly owned 10,886 shares of the company's stock, valued at approximately $807,958.92. This trade represents a 27.40% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 0.56% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in BKH. Clearstead Trust LLC purchased a new position in shares of Black Hills during the second quarter valued at about $34,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Black Hills in the second quarter worth about $34,000. Advisory Services Network LLC bought a new position in Black Hills during the third quarter valued at approximately $45,000. First Horizon Corp boosted its stake in Black Hills by 192.8% during the fourth quarter. First Horizon Corp now owns 773 shares of the utilities provider's stock valued at $54,000 after buying an additional 509 shares during the last quarter. Finally, Global Retirement Partners LLC purchased a new position in Black Hills during the 2nd quarter valued at approximately $56,000. Institutional investors own 86.71% of the company's stock.

Black Hills Stock Up 2.6%

BKH stock opened at $74.66 on Friday. The company has a market cap of $5.68 billion, a price-to-earnings ratio of 18.85, a P/E/G ratio of 2.95 and a beta of 0.71. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.53 and a current ratio of 0.65. The business's 50-day moving average is $73.36 and its two-hundred day moving average is $73.12. Black Hills has a fifty-two week low of $58.06 and a fifty-two week high of $78.69.

Black Hills (NYSE:BKH - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The utilities provider reported $0.54 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.13. Black Hills had a net margin of 13.01% and a return on equity of 8.03%. The business had revenue of $452.80 million for the quarter, compared to analysts' expectations of $490.89 million. During the same quarter last year, the company posted $0.38 EPS. The company's revenue was up 3.1% compared to the same quarter last year. Black Hills has set its FY 2026 guidance at 4.250-4.450 EPS. As a group, analysts forecast that Black Hills will post 4.34 earnings per share for the current year.

Black Hills Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Monday, August 17th will be paid a dividend of $0.703 per share. This represents a $2.81 annualized dividend and a yield of 3.8%. The ex-dividend date of this dividend is Monday, August 17th. Black Hills's dividend payout ratio (DPR) is 73.18%.

Black Hills Company Profile

Black Hills Corporation is a diversified energy company based in Rapid City, South Dakota, that provides electricity and natural gas distribution services to residential, commercial and industrial customers. Through its regulated utility subsidiaries—Black Hills Power, Cheyenne Light & Power, and Black Hills Energy—the company delivers reliable energy across Colorado, Kansas, Montana, Nebraska, South Dakota and Wyoming.

In addition to its distribution operations, Black Hills owns and operates a generation portfolio that includes natural gas–fired plants, coal-fired units, hydroelectric facilities and wind projects.

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