Capital Research Global Investors Boosts Position in Black Hills Corporation $BKH

Key Points

• Capital Research Global Investors increased its Black Hills stake by 38.7% in the fourth quarter, buying an additional 634,800 shares and ending with 2.28 million shares valued at about $158 million.
• Black Hills reported Q1 earnings of $1.79 per share, missing analyst expectations, though revenue of $780.7 million came in slightly above forecasts. The company also set FY 2026 guidance of $4.25 to $4.45 EPS.
• The company pays a 3.9% dividend yield after issuing a quarterly dividend of $0.703 per share, while analysts currently rate the stock a Moderate Buy with an average price target of $81.40.

Capital Research Global Investors raised its stake in shares of Black Hills Corporation (NYSE:BKH - Free Report) by 38.7% in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 2,275,922 shares of the utilities provider's stock after buying an additional 634,800 shares during the quarter. Capital Research Global Investors owned about 3.02% of Black Hills worth $157,995,000 at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in the stock. Parallel Advisors LLC grew its holdings in Black Hills by 96.4% during the 4th quarter. Parallel Advisors LLC now owns 2,316 shares of the utilities provider's stock valued at $161,000 after buying an additional 1,137 shares in the last quarter. Vise Technologies Inc. grew its holdings in Black Hills by 13.7% during the 4th quarter. Vise Technologies Inc. now owns 6,883 shares of the utilities provider's stock valued at $478,000 after buying an additional 829 shares in the last quarter. Magellan Asset Management Ltd grew its holdings in shares of Black Hills by 7.1% during the fourth quarter. Magellan Asset Management Ltd now owns 51,532 shares of the utilities provider's stock worth $3,577,000 after purchasing an additional 3,434 shares in the last quarter. Sivia Capital Partners LLC purchased a new position in shares of Black Hills during the fourth quarter worth about $296,000. Finally, Goldman Sachs Group Inc. grew its holdings in shares of Black Hills by 3.2% during the fourth quarter. Goldman Sachs Group Inc. now owns 967,603 shares of the utilities provider's stock worth $67,171,000 after purchasing an additional 30,213 shares in the last quarter. Hedge funds and other institutional investors own 86.71% of the company's stock.

Black Hills Stock Performance

NYSE:BKH opened at $72.29 on Tuesday. The business has a 50 day moving average of $73.40 and a 200 day moving average of $72.24. The company has a market capitalization of $5.50 billion, a price-to-earnings ratio of 18.83, a PEG ratio of 2.88 and a beta of 0.72. Black Hills Corporation has a 1-year low of $55.49 and a 1-year high of $78.69. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.65 and a quick ratio of 0.53.

Black Hills (NYSE:BKH - Get Free Report) last released its earnings results on Wednesday, May 6th. The utilities provider reported $1.79 earnings per share for the quarter, missing analysts' consensus estimates of $1.88 by ($0.09). The firm had revenue of $780.70 million during the quarter, compared to the consensus estimate of $769.19 million. Black Hills had a return on equity of 7.77% and a net margin of 12.61%.The business's quarterly revenue was down 3.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.87 EPS. Black Hills has set its FY 2026 guidance at 4.250-4.450 EPS. On average, sell-side analysts predict that Black Hills Corporation will post 4.34 earnings per share for the current fiscal year.

Black Hills Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 1st. Investors of record on Friday, May 15th were given a $0.703 dividend. The ex-dividend date was Friday, May 15th. This represents a $2.81 dividend on an annualized basis and a yield of 3.9%. Black Hills's payout ratio is presently 73.18%.

Insiders Place Their Bets

In related news, Director Robert P. Otto sold 4,109 shares of the business's stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $74.22, for a total value of $304,969.98. Following the completion of the sale, the director owned 10,886 shares in the company, valued at $807,958.92. The trade was a 27.40% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.56% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Bank of America boosted their price objective on Black Hills from $72.00 to $76.00 and gave the stock a "neutral" rating in a report on Thursday, April 9th. LADENBURG THALM/SH SH assumed coverage on Black Hills in a report on Wednesday, April 1st. They set a "buy" rating and a $77.00 price objective for the company. Siebert Williams Shank raised Black Hills from a "hold" rating to a "buy" rating and boosted their price objective for the stock from $79.00 to $82.00 in a report on Thursday, March 12th. Wall Street Zen lowered Black Hills from a "hold" rating to a "sell" rating in a report on Saturday, April 11th. Finally, BMO Capital Markets boosted their price objective on Black Hills from $84.00 to $91.00 and gave the stock an "outperform" rating in a report on Wednesday, April 15th. Five equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $81.40.

Black Hills Company Profile

Black Hills Corporation is a diversified energy company based in Rapid City, South Dakota, that provides electricity and natural gas distribution services to residential, commercial and industrial customers. Through its regulated utility subsidiaries—Black Hills Power, Cheyenne Light & Power, and Black Hills Energy—the company delivers reliable energy across Colorado, Kansas, Montana, Nebraska, South Dakota and Wyoming.

In addition to its distribution operations, Black Hills owns and operates a generation portfolio that includes natural gas–fired plants, coal-fired units, hydroelectric facilities and wind projects.

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