Black Stone Minerals (NYSE:BSM) Sees Large Volume Increase - Should You Buy?

Key Points

• Trading volume surged 246% to about 1.39 million shares, while BSM last traded at $13.78, down from its prior close of $13.98.
• Latest quarterly results fell short of estimates: earnings were $0.21 per share versus $0.26 expected, and revenue was $99.73 million versus $116.41 million forecast. Analysts’ average rating is “Reduce,” with a $15 price target.
• Black Stone Minerals raised its quarterly dividend from $0.32 to $0.35 per share, equivalent to a 10.2% yield; its reported dividend payout ratio is 137.25%.

Black Stone Minerals, L.P. (NYSE:BSM - Get Free Report) saw an uptick in trading volume on Monday. 1,394,949 shares traded hands during trading, an increase of 246% from the average daily volume of 403,687 shares. The stock last traded at $13.7840 and had previously closed at $13.98.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on BSM. Weiss Ratings upgraded Black Stone Minerals from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, August 20th. Zacks Research downgraded shares of Black Stone Minerals from a "hold" rating to a "strong sell" rating in a research note on Friday, October 16th. Three equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $15.00.

Black Stone Minerals Trading Down 2.1%

The business's 50-day simple moving average is $14.73 and its two-hundred day simple moving average is $14.51. The company has a current ratio of 1.78, a quick ratio of 1.78 and a debt-to-equity ratio of 0.25. The company has a market capitalization of $2.91 billion, a PE ratio of 13.41 and a beta of 0.14.

Black Stone Minerals (NYSE:BSM - Get Free Report) last issued its quarterly earnings data on Monday, November 2nd. The oil and gas producer reported $0.21 earnings per share for the quarter, missing analysts' consensus estimates of $0.26 by ($0.05). The business had revenue of $99.73 million for the quarter, compared to analyst estimates of $116.41 million. Black Stone Minerals had a net margin of 57.23% and a return on equity of 36.99%. On average, analysts predict that Black Stone Minerals, L.P. will post 0.70 earnings per share for the current year.

Black Stone Minerals Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, November 6th will be issued a dividend of $0.35 per share. The ex-dividend date of this dividend is Friday, November 6th. This represents a $1.40 annualized dividend and a yield of 10.2%. This is an increase from Black Stone Minerals's previous quarterly dividend of $0.32. Black Stone Minerals's dividend payout ratio (DPR) is 137.25%.

Hedge Funds Weigh In On Black Stone Minerals

Hedge funds have recently bought and sold shares of the company. Moors & Cabot Inc. lifted its stake in Black Stone Minerals by 1.6% during the third quarter. Moors & Cabot Inc. now owns 62,200 shares of the oil and gas producer's stock worth $891,000 after purchasing an additional 1,000 shares during the last quarter. Ashton Thomas Private Wealth LLC lifted its holdings in Black Stone Minerals by 16.7% in the third quarter. Ashton Thomas Private Wealth LLC now owns 122,777 shares of the oil and gas producer's stock worth $1,758,000 after acquiring an additional 17,563 shares during the last quarter. Arrow Investment Advisors LLC lifted its holdings in Black Stone Minerals by 11.2% in the third quarter. Arrow Investment Advisors LLC now owns 17,184 shares of the oil and gas producer's stock worth $246,000 after acquiring an additional 1,724 shares during the last quarter. Pekin Hardy Strauss Inc. boosted its stake in Black Stone Minerals by 21.6% in the third quarter. Pekin Hardy Strauss Inc. now owns 39,463 shares of the oil and gas producer's stock valued at $565,000 after acquiring an additional 7,007 shares during the period. Finally, Kestra Advisory Services LLC boosted its stake in Black Stone Minerals by 12.7% in the third quarter. Kestra Advisory Services LLC now owns 12,987 shares of the oil and gas producer's stock valued at $186,000 after acquiring an additional 1,467 shares during the period. 14.49% of the stock is currently owned by institutional investors and hedge funds.

Black Stone Minerals Company Profile

Black Stone Minerals, L.P. is a Houston-based owner of oil and natural gas mineral and royalty interests. The company leases these interests to exploration and production companies, which develop and operate the properties.

Black Stone Minerals generally does not drill wells itself. Instead, it earns royalties and other payments tied to production from wells on its properties, including oil, natural gas and natural gas liquids.

Its portfolio spans multiple onshore oil and gas regions across the United States, including areas in the Permian Basin, Haynesville shale and Eagle Ford.

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