Black Stone Minerals (NYSE:BSM) Releases Quarterly Earnings Results, Beats Expectations By $0.24 EPS

Key Points

• Black Stone Minerals reported quarterly EPS of $0.47, beating analyst expectations of $0.23 by $0.24. The company posted a 61.67% net margin and a 42.40% return on equity.
• The company increased its quarterly dividend to $0.32 per share, or $1.28 annualized, implying an 8.6% yield. The dividend is payable August 13 to shareholders of record as of August 6.
• Analyst sentiment remains cautious, with four Hold ratings and one Sell rating producing a consensus “Reduce” rating and a $15 price target. BSM recently traded at $14.89, while insiders collectively purchased 179,254 shares over the last quarter.

Black Stone Minerals (NYSE:BSM - Get Free Report) announced its earnings results on Monday. The oil and gas producer reported $0.47 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.23 by $0.24, Zacks reports. Black Stone Minerals had a net margin of 61.67% and a return on equity of 42.40%.

Black Stone Minerals Stock Performance

Black Stone Minerals stock traded down $0.06 during trading hours on Monday, reaching $14.89. 377,594 shares of the stock were exchanged, compared to its average volume of 387,255. The stock has a market cap of $3.16 billion, a P/E ratio of 11.72 and a beta of 0.04. The company has a debt-to-equity ratio of 0.24, a quick ratio of 2.34 and a current ratio of 2.34. Black Stone Minerals has a 52-week low of $11.78 and a 52-week high of $15.49. The firm's 50 day moving average is $14.03 and its 200 day moving average is $14.39.

Black Stone Minerals Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 13th. Shareholders of record on Thursday, August 6th will be paid a $0.32 dividend. The ex-dividend date of this dividend is Thursday, August 6th. This represents a $1.28 annualized dividend and a yield of 8.6%. This is an increase from Black Stone Minerals's previous quarterly dividend of $0.30. Black Stone Minerals's dividend payout ratio is presently 94.49%.

Analyst Ratings Changes

Several analysts recently commented on BSM shares. Royal Bank Of Canada assumed coverage on shares of Black Stone Minerals in a research report on Friday, May 29th. They issued a "sector perform" rating and a $16.00 price target for the company. Weiss Ratings restated a "hold (c)" rating on shares of Black Stone Minerals in a research note on Tuesday, July 21st. Finally, Zacks Research lowered shares of Black Stone Minerals from a "hold" rating to a "strong sell" rating in a research note on Tuesday, April 21st. Four investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and a consensus price target of $15.00.

Insider Activity

In other news, SVP Luke Stevens Putman sold 29,386 shares of Black Stone Minerals stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $13.75, for a total value of $404,057.50. Following the sale, the senior vice president owned 702,645 shares of the company's stock, valued at $9,661,368.75. The trade was a 4.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director D Mark Dewalch purchased 36,363 shares of the company's stock in a transaction dated Monday, June 1st. The shares were purchased at an average price of $13.62 per share, for a total transaction of $495,264.06. Following the completion of the purchase, the director owned 631,248 shares of the company's stock, valued at approximately $8,597,597.76. This trade represents a 6.11% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased a total of 179,254 shares of company stock worth $2,407,265 over the last quarter. Insiders own 17.70% of the company's stock.

Hedge Funds Weigh In On Black Stone Minerals

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Morgan Stanley raised its stake in shares of 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 in the last quarter. Bank of America Corp DE boosted its stake in shares of Black Stone Minerals by 2.2% in the third quarter. Bank of America Corp DE now owns 2,600,182 shares of the oil and gas producer's stock valued at $34,166,000 after buying an additional 56,368 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Black Stone Minerals by 5.5% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 963,313 shares of the oil and gas producer's stock worth $12,600,000 after acquiring an additional 49,818 shares during the period. First Trust Advisors LP grew its holdings in Black Stone Minerals by 24.6% during the third quarter. First Trust Advisors LP now owns 415,829 shares of the oil and gas producer's stock worth $5,464,000 after acquiring an additional 81,995 shares during the period. Finally, Wells Fargo & Company MN raised its position in Black Stone Minerals by 80.6% in the fourth quarter. Wells Fargo & Company MN now owns 361,303 shares of the oil and gas producer's stock worth $4,802,000 after acquiring an additional 161,198 shares in the last quarter. Institutional investors and hedge funds own 14.49% of the company's stock.

About Black Stone Minerals

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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