Black Stone Minerals (NYSE:BSM) Cut to "Strong Sell" at Zacks Research

Key Points

• Zacks Research downgraded Black Stone Minerals (BSM) from "hold" to "strong sell," and the MarketBeat consensus rating sits at "Reduce" with a $14.00 target price.
• The company beat recent quarter estimates with $0.31 EPS vs. $0.27 expected and $118.7M revenue vs. $98.08M, reporting a net margin of 62.26% and ROE of 43.31%; the stock trades around $14.21 with a $3.02B market cap and a PE of 11.10.
• Insiders remain significant owners (17.8%) but SVP Luke Putman sold 30,276 shares at about $15.25, while institutions such as Morgan Stanley increased stakes materially (Morgan Stanley up 57% to ~7.11M shares).

Black Stone Minerals (NYSE:BSM - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Tuesday,Zacks.com reports.

Several other research analysts also recently commented on the company. Piper Sandler lifted their target price on Black Stone Minerals from $13.00 to $14.00 and gave the stock a "neutral" rating in a report on Thursday, March 5th. Weiss Ratings reissued a "hold (c-)" rating on shares of Black Stone Minerals in a research note on Monday, December 29th. Three investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Black Stone Minerals currently has an average rating of "Reduce" and a consensus target price of $14.00.

Black Stone Minerals Stock Up 1.5%

Shares of BSM opened at $14.21 on Tuesday. The company has a market capitalization of $3.02 billion, a PE ratio of 11.10 and a beta of 0.19. Black Stone Minerals has a 12 month low of $11.78 and a 12 month high of $15.49. The stock's 50-day moving average price is $14.84 and its two-hundred day moving average price is $14.16. The company has a current ratio of 3.88, a quick ratio of 3.88 and a debt-to-equity ratio of 0.19.

Black Stone Minerals (NYSE:BSM - Get Free Report) last announced its earnings results on Monday, February 23rd. The oil and gas producer reported $0.31 EPS for the quarter, topping the consensus estimate of $0.27 by $0.04. The firm had revenue of $118.70 million for the quarter, compared to the consensus estimate of $98.08 million. Black Stone Minerals had a return on equity of 43.31% and a net margin of 62.26%. On average, analysts anticipate that Black Stone Minerals will post 0.91 EPS for the current year.

Insiders Place Their Bets

In related news, SVP Luke Stevens Putman sold 30,276 shares of the company's stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $15.25, for a total transaction of $461,709.00. Following the transaction, the senior vice president directly owned 761,417 shares of the company's stock, valued at approximately $11,611,609.25. This represents a 3.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 17.80% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Morgan Stanley raised its stake in Black Stone Minerals by 57.1% during the 4th quarter. Morgan Stanley now owns 7,107,673 shares of the oil and gas producer's stock worth $94,461,000 after buying an additional 2,582,823 shares during the period. Bank of America Corp DE raised its stake in Black Stone Minerals by 2.2% during the 3rd quarter. Bank of America Corp DE now owns 2,600,182 shares of the oil and gas producer's stock worth $34,166,000 after buying an additional 56,368 shares during the period. Penn Davis Mcfarland Inc. raised its stake in Black Stone Minerals by 2.5% during the 4th quarter. Penn Davis Mcfarland Inc. now owns 1,967,467 shares of the oil and gas producer's stock worth $26,148,000 after buying an additional 48,677 shares during the period. Investment Management Associates Inc. ADV raised its stake in Black Stone Minerals by 22.6% during the 3rd quarter. Investment Management Associates Inc. ADV now owns 1,934,739 shares of the oil and gas producer's stock worth $25,422,000 after buying an additional 356,852 shares during the period. Finally, Northwestern University acquired a new position in Black Stone Minerals during the 4th quarter worth approximately $15,671,000. 14.49% of the stock is owned by institutional investors and hedge funds.

Black Stone Minerals Company Profile

Black Stone Minerals L.P. NYSE: BSM is a publicly traded limited partnership that acquires and manages oil and natural gas mineral interests and producing royalty interests across the United States. The company's business model centers on holding fractional ownership in subsurface mineral estates, which allows it to earn royalty income from hydrocarbon production without taking on the capital expenditures or operating risks associated with exploration and development.

Founded in 1876 and headquartered in Houston, Texas, Black Stone Minerals has built a diversified portfolio spanning key U.S.

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