Permian Basin Royalty Trust (NYSE:PBT) Hits New 1-Year High - Still a Buy?

Key Points

• 52-week high: Permian Basin Royalty Trust traded as high as $23.13 and is showing momentum with a 50-day moving average of $21.23 and a 200-day moving average of $19.23.
• Analyst downgrade: Weiss Ratings cut PBT from "hold (c-)" to "sell (d+)" on March 30, and the stock's consensus rating on MarketBeat is currently "Sell" despite the price rally.
• Dividend raise but high payout ratio: The trust increased its monthly dividend to $0.038 (from $0.01), implying ~2.0% yield, but the payout ratio is a concerning 140.62%, which may be unsustainable.

Permian Basin Royalty Trust (NYSE:PBT - Get Free Report) hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $23.13 and last traded at $23.1440, with a volume of 129858 shares changing hands. The stock had previously closed at $22.45.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings downgraded Permian Basin Royalty Trust from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, March 30th. One equities research analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, Permian Basin Royalty Trust presently has an average rating of "Sell".

Permian Basin Royalty Trust Price Performance

The firm has a market capitalization of $1.09 billion, a price-to-earnings ratio of 73.04 and a beta of 0.42. The business's 50-day moving average price is $21.23 and its 200 day moving average price is $19.23.

Permian Basin Royalty Trust (NYSE:PBT - Get Free Report) last announced its earnings results on Friday, March 27th. The oil and gas producer reported $0.06 earnings per share for the quarter. The business had revenue of $2.61 million during the quarter. Permian Basin Royalty Trust had a net margin of 89.06% and a return on equity of 8,774.67%.

Permian Basin Royalty Trust Increases Dividend

The firm also recently announced a monthly dividend, which will be paid on Thursday, May 14th. Stockholders of record on Thursday, April 30th will be paid a dividend of $0.038 per share. This is a boost from Permian Basin Royalty Trust's previous monthly dividend of $0.01. This represents a c) annualized dividend and a dividend yield of 2.0%. The ex-dividend date is Thursday, April 30th. Permian Basin Royalty Trust's payout ratio is 140.62%.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. Mad River Investors grew its stake in Permian Basin Royalty Trust by 1.7% during the 1st quarter. Mad River Investors now owns 1,003,140 shares of the oil and gas producer's stock valued at $21,588,000 after purchasing an additional 16,321 shares in the last quarter. Welch Group LLC boosted its stake in shares of Permian Basin Royalty Trust by 8.4% during the 1st quarter. Welch Group LLC now owns 19,298 shares of the oil and gas producer's stock valued at $415,000 after buying an additional 1,500 shares during the last quarter. XTX Topco Ltd acquired a new stake in shares of Permian Basin Royalty Trust during the fourth quarter worth approximately $230,000. Avondale Wealth Management increased its stake in shares of Permian Basin Royalty Trust by 215.5% in the fourth quarter. Avondale Wealth Management now owns 45,750 shares of the oil and gas producer's stock worth $777,000 after buying an additional 31,250 shares during the last quarter. Finally, Royal Bank of Canada increased its stake in shares of Permian Basin Royalty Trust by 6.0% in the fourth quarter. Royal Bank of Canada now owns 9,802 shares of the oil and gas producer's stock worth $166,000 after buying an additional 558 shares during the last quarter. Institutional investors and hedge funds own 28.86% of the company's stock.

Permian Basin Royalty Trust Company Profile

Permian Basin Royalty Trust NYSE: PBT is a passive investment vehicle that holds overriding royalty interests in oil and gas properties located in the Permian Basin region of West Texas. Established in 1980 by Apache Oil Company, the Trust does not engage in exploration or production activities. Instead, it owns net profit interests on specified acreage, allowing unitholders to participate directly in the cash flows generated by hydrocarbon extraction without bearing the costs or risks associated with day-to-day field operations.

The Trust’s interests cover acreage predominantly in Reeves and Loving Counties, where mature wells have been developed over several decades.

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