Dorchester Minerals (NASDAQ:DMLP) Sees Strong Trading Volume Following Dividend Announcement

Key Points

• Dorchester Minerals saw a sharp jump in trading volume after announcing a much larger quarterly dividend, with shares paid on August 13 to holders of record on August 3.
• The new dividend of $1.2729 per share is a significant increase from the prior $0.48 payout and implies an annualized yield of about 18.4%.
• Analysts remain cautious overall, with the stock carrying a consensus Hold rating, even as some insiders and a few institutions have recently added to their positions.

Dorchester Minerals, L.P. (NASDAQ:DMLP - Get Free Report) saw unusually-strong trading volume on Friday following a dividend announcement from the company. 387,154 shares were traded during trading, an increase of 117% from the previous session's volume of 178,211 shares.The stock last traded at $27.78 and had previously closed at $27.44.The newly announced dividend which will be paid on Thursday, August 13th. Stockholders of record on Monday, August 3rd will be given a $1.2729 dividend. This is a boost from Dorchester Minerals's previous quarterly dividend of $0.48. This represents a $5.09 annualized dividend and a dividend yield of 18.4%. The ex-dividend date is Monday, August 3rd. Dorchester Minerals's dividend payout ratio (DPR) is currently 136.69%.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on DMLP shares. Weiss Ratings restated a "hold (c)" rating on shares of Dorchester Minerals in a report on Wednesday, June 24th. Wall Street Zen raised Dorchester Minerals from a "hold" rating to a "buy" rating in a research report on Saturday, May 9th. One research analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, the company currently has a consensus rating of "Hold".

Dorchester Minerals Price Performance

The firm has a market cap of $1.34 billion, a P/E ratio of 19.99 and a beta of 0.55. The firm's 50-day moving average price is $26.76 and its 200 day moving average price is $26.37.

Dorchester Minerals (NASDAQ:DMLP - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The energy company reported $0.59 EPS for the quarter. Dorchester Minerals had a net margin of 40.85% and a return on equity of 22.11%. The business had revenue of $58.88 million during the quarter.

Insiders Place Their Bets

In other Dorchester Minerals news, insider Minerals Operating Dorchester acquired 7,500 shares of the stock in a transaction dated Monday, June 1st. The shares were bought at an average price of $27.56 per share, with a total value of $206,700.00. Following the purchase, the insider directly owned 70,017 shares of the company's stock, valued at approximately $1,929,668.52. This trade represents a 12.00% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Bradley J. Ehrman bought 4,000 shares of Dorchester Minerals stock in a transaction that occurred on Tuesday, May 12th. The shares were acquired at an average price of $26.78 per share, with a total value of $107,120.00. Following the completion of the acquisition, the chief executive officer directly owned 142,723 shares of the company's stock, valued at $3,822,121.94. This represents a 2.88% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought a total of 19,000 shares of company stock worth $526,070 in the last three months. Company insiders own 5.90% of the company's stock.

Institutional Trading of Dorchester Minerals

A number of hedge funds have recently modified their holdings of DMLP. Geneos Wealth Management Inc. raised its stake in shares of Dorchester Minerals by 59.9% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,175 shares of the energy company's stock valued at $35,000 after buying an additional 440 shares in the last quarter. Farther Finance Advisors LLC acquired a new position in Dorchester Minerals in the fourth quarter worth about $36,000. EverSource Wealth Advisors LLC lifted its stake in Dorchester Minerals by 4,918.0% during the fourth quarter. EverSource Wealth Advisors LLC now owns 3,061 shares of the energy company's stock worth $68,000 after purchasing an additional 3,000 shares during the period. Kestra Advisory Services LLC bought a new position in Dorchester Minerals during the fourth quarter worth about $68,000. Finally, Osaic Holdings Inc. boosted its holdings in Dorchester Minerals by 14.1% during the second quarter. Osaic Holdings Inc. now owns 3,748 shares of the energy company's stock valued at $104,000 after purchasing an additional 463 shares in the last quarter. Hedge funds and other institutional investors own 19.21% of the company's stock.

Dorchester Minerals Company Profile

Dorchester Minerals, L.P. NASDAQ: DMLP is a publicly traded master limited partnership that acquires, owns and manages mineral and royalty interests in oil and natural gas properties. The company holds net revenue interests on producing and non-producing wells, entitling it to a share of production proceeds without bearing the costs or operating responsibilities associated with exploration and development activities. Through strategic acquisitions and joint-venture arrangements, Dorchester Minerals builds a diversified portfolio of royalty assets across multiple U.S.

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