Permian Basin Royalty Trust (NYSE:PBT) Trading Up 8.7% - Here's Why

Key Points

• Permian Basin Royalty Trust shares jumped 8.7% to about $30.45 in mid-day trading, despite volume running roughly 50% below the average session level.
• Weiss Ratings upgraded the trust from “sell” to “hold,” while the lone tracked analyst maintained a Hold consensus rating.
• The trust increased its monthly dividend to $0.0436 per share from $0.02, implying a 1.8% annualized yield; however, its reported payout ratio is high at 162.5%.

Permian Basin Royalty Trust (NYSE:PBT - Get Free Report) shares shot up 8.7% during mid-day trading on Wednesday . The company traded as high as $30.78 and last traded at $30.45. 62,257 shares traded hands during mid-day trading, a decline of 50% from the average session volume of 124,704 shares. The stock had previously closed at $28.00.

Wall Street Analyst Weigh In

Separately, Weiss Ratings raised shares of Permian Basin Royalty Trust from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, May 21st. One research analyst has rated the stock with a Hold rating, According to data from MarketBeat, Permian Basin Royalty Trust has a consensus rating of "Hold".

Permian Basin Royalty Trust Stock Up 3.4%

The firm has a 50-day simple moving average of $27.53 and a 200 day simple moving average of $23.27. The company has a market cap of $1.35 billion, a price-to-earnings ratio of 90.38 and a beta of 0.48.

Permian Basin Royalty Trust (NYSE:PBT - Get Free Report) last posted its quarterly earnings data on Thursday, May 14th. The oil and gas producer reported $0.06 earnings per share for the quarter. Permian Basin Royalty Trust had a return on equity of 9,061.81% and a net margin of 88.99%.The business had revenue of $3.57 million during the quarter.

Permian Basin Royalty Trust Increases Dividend

The business also recently disclosed a monthly dividend, which will be paid on Friday, August 14th. Shareholders of record on Friday, July 31st will be given a dividend of $0.0436 per share. This represents a c) dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend is Friday, July 31st. This is a positive change from Permian Basin Royalty Trust's previous monthly dividend of $0.02. Permian Basin Royalty Trust's payout ratio is 162.50%.

Institutional Investors Weigh In On Permian Basin Royalty Trust

Several large investors have recently modified their holdings of the stock. Mad River Investors lifted its holdings in shares of Permian Basin Royalty Trust by 7.0% during the fourth quarter. Mad River Investors now owns 986,819 shares of the oil and gas producer's stock worth $16,756,000 after purchasing an additional 64,589 shares during the period. Horizon Kinetics Asset Management LLC increased its stake in Permian Basin Royalty Trust by 1.5% in the 4th quarter. Horizon Kinetics Asset Management LLC now owns 6,187,800 shares of the oil and gas producer's stock valued at $105,069,000 after buying an additional 88,751 shares during the period. Moors & Cabot Inc. raised its position in Permian Basin Royalty Trust by 10.5% during the 4th quarter. Moors & Cabot Inc. now owns 585,746 shares of the oil and gas producer's stock worth $9,946,000 after buying an additional 55,456 shares during the last quarter. Hosking Partners LLP raised its position in Permian Basin Royalty Trust by 12.8% during the 4th quarter. Hosking Partners LLP now owns 346,683 shares of the oil and gas producer's stock worth $5,887,000 after buying an additional 39,230 shares during the last quarter. Finally, Kingswood Wealth Advisors LLC acquired a new stake in shares of Permian Basin Royalty Trust in the 4th quarter worth $211,000. Hedge funds and other institutional investors 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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