Dorchester Minerals (NASDAQ:DMLP) Shares Pass Above 200 Day Moving Average - Should You Sell?

Key Points

• Dorchester Minerals shares rose above their 200-day moving average, trading as high as $27.65 and last changing hands at $27.44, up 0.6% on the day.
• The company announced a much larger quarterly dividend of $1.2729 per share, which annualizes to $5.09 and implies a dividend yield of 18.6%. This is a sharp increase from the prior quarterly payout of $0.48.
• Insiders have been buying the stock, including CEO Bradley J. Ehrman and Dorchester Minerals Operating, while institutional investors also increased holdings. Analyst sentiment remains mixed, with an overall average rating of Hold.

Shares of Dorchester Minerals, L.P. (NASDAQ:DMLP - Get Free Report) crossed above its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $26.37 and traded as high as $27.65. Dorchester Minerals shares last traded at $27.44, with a volume of 489,443 shares traded.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on DMLP. Weiss Ratings reaffirmed 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 note on Saturday, May 9th. One research analyst has rated the stock with a Hold rating, Based on data from MarketBeat, the company presently has an average rating of "Hold".

Dorchester Minerals Stock Up 0.6%

The company has a market cap of $1.32 billion, a P/E ratio of 19.74 and a beta of 0.55. The firm's 50 day moving average is $26.76 and its two-hundred day moving average is $26.37.

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

Dorchester Minerals Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 13th. Stockholders of record on Monday, August 3rd will be given a dividend of $1.2729 per share. This represents a $5.09 dividend on an annualized basis and a dividend yield of 18.6%. This is a positive change from Dorchester Minerals's previous quarterly dividend of $0.48. The ex-dividend date is Monday, August 3rd. Dorchester Minerals's dividend payout ratio is 136.69%.

Insider Buying and Selling

In related news, CEO Bradley J. Ehrman acquired 4,000 shares of the business's stock in a transaction that occurred on Tuesday, May 12th. The shares were bought at an average cost of $26.78 per share, with a total value of $107,120.00. Following the completion of the purchase, the chief executive officer directly owned 142,723 shares in the company, valued at $3,822,121.94. The trade was a 2.88% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, insider Minerals Operating Dorchester bought 7,500 shares of Dorchester Minerals stock in a transaction that occurred on Monday, June 1st. The stock was bought at an average price of $27.56 per share, for a total transaction of $206,700.00. Following the completion of the acquisition, the insider directly owned 70,017 shares of the company's stock, valued at $1,929,668.52. The trade was a 12.00% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders purchased 19,000 shares of company stock worth $526,070. 5.90% of the stock is owned by insiders.

Institutional Investors Weigh In On Dorchester Minerals

Several large investors have recently modified their holdings of the company. Adams Asset Advisors LLC grew its holdings in Dorchester Minerals by 9.1% during the 4th quarter. Adams Asset Advisors LLC now owns 814,852 shares of the energy company's stock worth $18,220,000 after acquiring an additional 68,177 shares during the period. ArchPoint Investors lifted its stake in shares of Dorchester Minerals by 4.1% in the 4th quarter. ArchPoint Investors now owns 559,260 shares of the energy company's stock valued at $12,505,000 after purchasing an additional 22,201 shares during the period. MidFirst Bank bought a new stake in shares of Dorchester Minerals during the 4th quarter valued at about $11,049,000. Texas Yale Capital Corp. boosted its position in shares of Dorchester Minerals by 15.8% during the 4th quarter. Texas Yale Capital Corp. now owns 201,500 shares of the energy company's stock valued at $4,506,000 after purchasing an additional 27,500 shares in the last quarter. Finally, First Trust Advisors LP grew its stake in Dorchester Minerals by 15.8% during the third quarter. First Trust Advisors LP now owns 189,500 shares of the energy company's stock worth $4,906,000 after purchasing an additional 25,923 shares during the period. 19.21% of the stock is currently owned by institutional investors and hedge funds.

About Dorchester Minerals

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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