Black Stone Minerals (NYSE:BSM) Reaches New 12-Month Low - Should You Sell?

Key Points

• Black Stone Minerals (NYSE:BSM) has hit a new 52-week low, trading at $11.96 during mid-day on Monday, reflecting a decline from its previous close of $12.20.
• Wall Street analysts recently downgraded the stock to a hold rating and lowered the price target from $15.00 to $14.00, citing concerns over its performance.
• The company reported a net margin of 61.21% and a strong earnings per share (EPS) of $0.53, exceeding analysts' expectations of $0.30.

Black Stone Minerals, L.P. (NYSE:BSM - Get Free Report) hit a new 52-week low during mid-day trading on Monday . The stock traded as low as $11.96 and last traded at $12.01, with a volume of 105917 shares changing hands. The stock had previously closed at $12.20.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on the stock. Wall Street Zen cut shares of Black Stone Minerals from a "buy" rating to a "hold" rating in a research report on Thursday, May 15th. Piper Sandler decreased their price objective on shares of Black Stone Minerals from $15.00 to $14.00 and set a "neutral" rating for the company in a research note on Tuesday, May 13th.

Black Stone Minerals Price Performance

The stock has a market cap of $2.55 billion, a price-to-earnings ratio of 10.41 and a beta of 0.28. The company has a debt-to-equity ratio of 0.12, a quick ratio of 3.22 and a current ratio of 3.22. The business's fifty day simple moving average is $13.01 and its 200 day simple moving average is $13.98.

Black Stone Minerals (NYSE:BSM - Get Free Report) last announced its earnings results on Monday, August 4th. The oil and gas producer reported $0.53 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.30 by $0.23. Black Stone Minerals had a net margin of 61.21% and a return on equity of 39.67%. The business had revenue of $159.49 million for the quarter, compared to analyst estimates of $112.19 million. Research analysts predict that Black Stone Minerals, L.P. will post 1.36 EPS for the current fiscal year.

Black Stone Minerals Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, August 14th. Stockholders of record on Thursday, August 7th will be given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 9.9%. Black Stone Minerals's dividend payout ratio is presently 103.45%.

Insider Buying and Selling at Black Stone Minerals

In other news, CEO Thomas L. Carter, Jr. purchased 14,500 shares of Black Stone Minerals stock in a transaction that occurred on Wednesday, May 21st. The stock was acquired at an average cost of $13.52 per share, for a total transaction of $196,040.00. Following the purchase, the chief executive officer directly owned 3,349,621 shares of the company's stock, valued at $45,286,875.92. This trade represents a 0.43% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, SVP Carrie Pearson Clark sold 36,900 shares of the firm's stock in a transaction on Thursday, May 29th. The stock was sold at an average price of $13.56, for a total value of $500,364.00. Following the transaction, the senior vice president owned 165,857 shares in the company, valued at approximately $2,249,020.92. This trade represents a 18.20% decrease in their position. The disclosure for this sale can be found here. 17.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Black Stone Minerals

Large investors have recently modified their holdings of the business. LPL Financial LLC lifted its holdings in shares of Black Stone Minerals by 13.5% in the 4th quarter. LPL Financial LLC now owns 136,076 shares of the oil and gas producer's stock worth $1,987,000 after purchasing an additional 16,174 shares in the last quarter. JPMorgan Chase & Co. lifted its holdings in Black Stone Minerals by 294.3% during the fourth quarter. JPMorgan Chase & Co. now owns 19,714 shares of the oil and gas producer's stock worth $288,000 after acquiring an additional 14,714 shares during the period. Wells Fargo & Company MN lifted its holdings in Black Stone Minerals by 13.1% during the fourth quarter. Wells Fargo & Company MN now owns 85,726 shares of the oil and gas producer's stock worth $1,252,000 after acquiring an additional 9,900 shares during the period. Raymond James Financial Inc. bought a new position in shares of Black Stone Minerals during the 4th quarter valued at approximately $4,211,000. Finally, Jump Financial LLC bought a new position in Black Stone Minerals during the fourth quarter valued at $185,000. Institutional investors own 14.49% of the company's stock.

About Black Stone Minerals

Black Stone Minerals, L.P., together with its subsidiaries, owns and manages oil and natural gas mineral interests. It owns mineral interests in approximately 16.8 million gross acres, nonparticipating royalty interests in 1.8 million gross acres, and overriding royalty interests in 1.6 million gross acres located in 41 states in the United States.

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