Black Hills (NYSE:BKH) Downgraded by Wall Street Zen to Sell

Key Points

• Wall Street Zen downgraded Black Hills (NYSE:BKH) from a "hold" to a "sell" in a note issued Saturday.
• Despite that downgrade, the consensus remains a Moderate Buy — five analysts rate it Buy, one Hold, with an average price target of $80.00.
• Most recent results showed EPS of $1.41 (beating $1.37) but revenue of $635.5M missed expectations, and management set FY2026 guidance at 4.25–4.45 EPS.

Black Hills (NYSE:BKH - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Saturday.

A number of other equities analysts have also recently commented on the company. BMO Capital Markets lifted their price target on Black Hills from $82.00 to $84.00 and gave the stock an "outperform" rating in a research note on Monday, February 9th. Siebert Williams Shank raised Black Hills from a "hold" rating to a "buy" rating and lifted their price target for the stock from $79.00 to $82.00 in a research note on Thursday, March 12th. Bank of America lifted their price target on Black Hills from $72.00 to $76.00 and gave the stock a "neutral" rating in a research note on Thursday. Weiss Ratings reissued a "buy (b-)" rating on shares of Black Hills in a research note on Friday, March 27th. Finally, LADENBURG THALM/SH SH assumed coverage on Black Hills in a research note on Wednesday, April 1st. They set a "buy" rating and a $77.00 target price on the stock. Five investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, Black Hills presently has a consensus rating of "Moderate Buy" and an average target price of $80.00.

Black Hills Price Performance

Shares of Black Hills stock opened at $73.80 on Friday. The company has a debt-to-equity ratio of 1.20, a current ratio of 1.35 and a quick ratio of 1.11. The business's 50 day simple moving average is $72.11 and its two-hundred day simple moving average is $69.47. The stock has a market capitalization of $5.61 billion, a P/E ratio of 18.54, a price-to-earnings-growth ratio of 2.90 and a beta of 0.73. Black Hills has a one year low of $55.49 and a one year high of $75.87.

Black Hills (NYSE:BKH - Get Free Report) last announced its quarterly earnings results on Wednesday, February 4th. The utilities provider reported $1.41 EPS for the quarter, topping analysts' consensus estimates of $1.37 by $0.04. The business had revenue of $635.50 million for the quarter, compared to analysts' expectations of $809.88 million. Black Hills had a return on equity of 7.91% and a net margin of 12.62%.The business's quarterly revenue was up 6.4% on a year-over-year basis. During the same period in the previous year, the firm earned $1.37 EPS. Black Hills has set its FY 2026 guidance at 4.250-4.450 EPS. Analysts forecast that Black Hills will post 4.12 EPS for the current year.

Hedge Funds Weigh In On Black Hills

Several hedge funds have recently made changes to their positions in BKH. Zimmer Partners LP increased its stake in shares of Black Hills by 2,100.0% during the third quarter. Zimmer Partners LP now owns 1,100,020 shares of the utilities provider's stock valued at $67,750,000 after buying an additional 1,050,020 shares during the period. Adage Capital Partners GP L.L.C. increased its stake in shares of Black Hills by 176.9% during the fourth quarter. Adage Capital Partners GP L.L.C. now owns 1,592,000 shares of the utilities provider's stock valued at $110,517,000 after buying an additional 1,017,000 shares during the period. Engineers Gate Manager LP boosted its position in shares of Black Hills by 17,790.3% during the fourth quarter. Engineers Gate Manager LP now owns 849,073 shares of the utilities provider's stock valued at $58,943,000 after purchasing an additional 844,327 shares in the last quarter. Balyasny Asset Management L.P. grew its stake in Black Hills by 10,853.0% in the third quarter. Balyasny Asset Management L.P. now owns 664,080 shares of the utilities provider's stock worth $40,901,000 after purchasing an additional 658,017 shares during the period. Finally, Capital Research Global Investors grew its stake in Black Hills by 38.7% in the fourth quarter. Capital Research Global Investors now owns 2,275,922 shares of the utilities provider's stock worth $157,995,000 after purchasing an additional 634,800 shares during the period. 86.71% of the stock is owned by hedge funds and other institutional investors.

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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