In the second quarter of 2023, investment management firm Hennessy Advisors Inc. reported a slight decrease in its holdings of Black Hills Co. (NYSE:BKH). According to the company’s recent filing with the Securities and Exchange Commission (SEC), it sold 2,000 shares of the utilities provider’s stock, resulting in a 3.0% reduction in its ownership. At the end of this period, Hennessy Advisors Inc. owned approximately 64,647 shares of Black Hills, representing about 0.10% of the company’s total worth amounting to $3,896,000.
Black Hills is a renowned utilities provider that offers electric power and natural gas services to customers across various regions. As part of its commitment to providing value to its shareholders, the company recently declared a quarterly dividend. This dividend was paid on September 1st and was issued to investors who were recorded as shareholders on August 18th. The dividend amounted to $0.625 per share, which translates into an annualized dividend payout of $2.50 per share. Considering the current stock price of Black Hills, this dividend represents a noteworthy yield of 4.65%.
Investors interested in accessing our comprehensive research report on Black Hills Co., including analysis and insights into its financial performance and market trends are encouraged to read further.
It is important for investors to note that dividends play a crucial role in evaluating an investment opportunity as they serve as an indicator of a company’s financial stability and success. In this case, Black Hills has demonstrated its ability to distribute profits among its shareholders through regular dividend payments.
Furthermore, it is worth mentioning that Black Hills maintains a favorable ratio for its dividend payout (DPR). The DPR represents the percentage of earnings or net income that a company pays out as dividends to shareholders. Currently standing at 67.02%, Black Hills appears committed to maintaining an optimal balance between retaining earnings for growth and rewarding investors through dividend distributions.
The ex-dividend date, which determines an investor’s eligibility to receive the dividend payment, was set on August 17th. Therefore, shareholders who purchased or sold shares of Black Hills after this date did not qualify for the recently declared dividend.
Overall, Hennessy Advisors Inc.’s reduction in holdings reflects a strategic decision based on their investment objectives and portfolio management. As with any investment decision, it is essential for investors to evaluate their own financial goals and risk tolerance before making any adjustments to their holdings.
For those interested in conducting further research on Black Hills Co., we recommend exploring our comprehensive research report. This detailed analysis provides valuable insights into the company’s financial performance, industry dynamics, and potential future prospects.
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Hedge Fund Activity and Analyst Reports Impact Black Hills (BKH) Stock
In recent months, there have been significant changes in the holdings of several hedge funds regarding their investment in Black Hills (BKH). Allianz Asset Management GmbH, for example, has increased its stake in the utilities provider’s stock by 1.1% during the first quarter. This has resulted in owning 13,420 shares valued at $1,034,000 after acquiring an additional 151 shares in the last quarter.
Similarly, Captrust Financial Advisors raised its stake by 3.7% during the first quarter and now owns 4,322 shares worth $333,000 after acquiring an additional 154 shares. Panagora Asset Management Inc. also increased its stake by 4.2% during the same period and now holds 3,866 shares worth $244,000 after acquiring an additional 155 shares.
Envestnet Asset Management Inc., on the other hand, raised its stake by 1.5% during the third quarter and currently owns 12,240 shares valued at $829,000 after acquiring an additional 176 shares. Finally, SeaCrest Wealth Management LLC increased its stake by 0.6% during the second quarter and now holds 32,603 shares worth $1,965,000 after acquiring an additional 182 shares.
It is important to note that these acquisitions by hedge funds and institutional investors represent a significant portion of the company’s stock ownership at approximately 86.64%.
Such notable changes in shareholdings have led to various analyst reports concerning Black Hills (BKH). StockNews.com initiated coverage on August 19th with a “sell” rating for the company. Mizuho subsequently lowered their price target from $56 to $53 on Friday while rating it as “underperform.” TheStreet also downgraded Black Hills from a “b” rating to a “c+” rating on September 5th.
Royal Bank of Canada followed suit by reducing their price target from $68 to $61 and assigning a “sector perform” rating on September 6th. Lastly, Wells Fargo & Company lowered their price target from $66 to $62, maintaining an “equal weight” rating on August 4th.
These reports have resulted in three analysts rating the stock as a sell, while another four have given it a hold rating. According to data from Bloomberg.com, Black Hills currently has an average rating of “Hold” with a consensus target price of $61.67.
On the New York Stock Exchange (NYSE), BKH opened at $53.78 on September 26, 2023. The company has a market capitalization of $3.61 billion and exhibits a P/E ratio of 14.42 with a PEG ratio of 6.54 and beta value of 0.59.
Black Hill’s stock performance over the past year has seen its lowest point at $53.15 and its highest at $73.98, indicating some volatility within that period. With a fifty-day moving average price of $56.71 and a two-hundred-day moving average price of $60.49, it is suggested that the stock has experienced fluctuations in recent months.
Concerning its financial performance, Black Hills released its quarterly earnings data on August 2nd, 2023. The utilities provider reported an earnings per share (EPS) of $0.35 for the quarter, falling short of analysts’ consensus estimate of $0.38 by ($0.03). Its revenue for the quarter amounted to $411.30 million compared to analyst estimates of $552.13 million.
Black Hills exhibited a return on equity (ROE) rate of approximately 7.85% with a net margin of around 9.46%. However, its revenue was down by 12.9% compared to the same quarter in the previous year when it earned $0.52 EPS.
Equities research analysts predict that Black Hills Co. will post an EPS of 3.73 for the current year based on these numbers and projections.
In conclusion, Black Hills (BKH) has experienced significant changes in its holdings by hedge funds and institutional investors. This has coincided with a series of analyst reports regarding the stock, resulting in ratings ranging from sell to hold. The company’s performance on the NYSE indicates some volatility, while its recent financial results fell short of expectations. It will be interesting to observe how these factors continue to impact the company moving forward.
