Bank of America Corp DE Invests $129.16 Million in MDU Resources Group, Inc. $MDU

Key Points

• Bank of America acquired 6.09 million MDU Resources shares worth approximately $129.2 million, giving it a 2.97% stake. Institutional investors collectively own 71.44% of the utility company.
• MDU Resources beat quarterly EPS estimates with $0.10 versus $0.09 expected, while revenue rose 6.8% year over year to $375.3 million but fell short of expectations.
• The company increased its quarterly dividend to $0.145 per share, equal to an annualized $0.58 dividend and a 3.1% yield. Analysts maintain a consensus “Hold” rating with a $23.40 target price.

Bank of America Corp DE bought a new stake in shares of MDU Resources Group, Inc. (NYSE:MDU - Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm bought 6,089,546 shares of the utilities provider's stock, valued at approximately $129,159,000. Bank of America Corp DE owned 2.97% of MDU Resources Group as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Arkadios Wealth Advisors grew its stake in MDU Resources Group by 1.7% in the 1st quarter. Arkadios Wealth Advisors now owns 27,316 shares of the utilities provider's stock valued at $566,000 after acquiring an additional 449 shares during the period. Rockefeller Capital Management L.P. increased its holdings in MDU Resources Group by 40.4% in the 4th quarter. Rockefeller Capital Management L.P. now owns 2,101 shares of the utilities provider's stock worth $41,000 after acquiring an additional 605 shares in the last quarter. Private Advisor Group LLC raised its position in MDU Resources Group by 0.9% during the first quarter. Private Advisor Group LLC now owns 70,442 shares of the utilities provider's stock worth $1,460,000 after acquiring an additional 612 shares during the period. D.A. Davidson & CO. raised its position in MDU Resources Group by 0.9% during the first quarter. D.A. Davidson & CO. now owns 77,537 shares of the utilities provider's stock worth $1,607,000 after acquiring an additional 658 shares during the period. Finally, EverSource Wealth Advisors LLC lifted its holdings in MDU Resources Group by 27.7% during the fourth quarter. EverSource Wealth Advisors LLC now owns 3,109 shares of the utilities provider's stock valued at $61,000 after purchasing an additional 675 shares in the last quarter. Hedge funds and other institutional investors own 71.44% of the company's stock.

MDU Resources Group Stock Performance

MDU opened at $18.70 on Friday. MDU Resources Group, Inc. has a twelve month low of $15.76 and a twelve month high of $22.98. The firm has a market capitalization of $3.83 billion, a PE ratio of 19.69, a PEG ratio of 3.44 and a beta of 0.67. The company has a current ratio of 0.99, a quick ratio of 0.95 and a debt-to-equity ratio of 0.88. The firm's 50-day moving average price is $20.21 and its 200 day moving average price is $20.98.

MDU Resources Group (NYSE:MDU - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The utilities provider reported $0.10 EPS for the quarter, beating analysts' consensus estimates of $0.09 by $0.01. The company had revenue of $375.30 million during the quarter, compared to the consensus estimate of $396.56 million. MDU Resources Group had a net margin of 10.75% and a return on equity of 6.89%. MDU Resources Group's quarterly revenue was up 6.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.07 EPS. MDU Resources Group has set its FY 2026 guidance at 0.930-1.000 EPS. As a group, sell-side analysts expect that MDU Resources Group, Inc. will post 0.98 EPS for the current fiscal year.

MDU Resources Group Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be given a dividend of $0.145 per share. The ex-dividend date is Thursday, September 10th. This is a positive change from MDU Resources Group's previous quarterly dividend of $0.14. This represents a $0.58 dividend on an annualized basis and a yield of 3.1%. MDU Resources Group's dividend payout ratio (DPR) is 61.05%.

Analyst Upgrades and Downgrades

MDU has been the topic of several research analyst reports. JPMorgan Chase & Co. upgraded shares of MDU Resources Group from a "neutral" rating to an "overweight" rating and set a $27.00 target price on the stock in a research report on Thursday, August 6th. Wells Fargo & Company initiated coverage on shares of MDU Resources Group in a research report on Monday, July 13th. They set an "overweight" rating and a $25.00 price target for the company. Finally, Weiss Ratings lowered shares of MDU Resources Group from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, August 28th. Three research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus target price of $23.40.

About MDU Resources Group

MDU Resources Group, Inc is a regulated utility holding company headquartered in Bismarck, North Dakota. Through its utility subsidiaries, the company generates, transmits and distributes electricity and provides natural gas distribution and related services to residential, commercial, industrial and agricultural customers.

MDU's principal electric utility, Montana-Dakota Utilities Co, serves customers in parts of North Dakota, South Dakota, Montana and Wyoming. Its natural gas operations include Montana-Dakota Utilities, Great Plains Natural Gas Co, Cascade Natural Gas Corp.

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