Black Stone Minerals L.P. (BSM) Shares: Are They Risky Or Cheap?

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Black Stone Minerals L.P. (NYSE:BSM) finished Wednesday with a subtraction of -$1.01 to close at $16.05, a downside of -5.92 percent. An average of 1,120,640 shares of common stock have been traded in the last five days. There was a fall of -$0.71 in the past week, and it reached a new high 49 times over the past 12 months. The last 20 days have seen an average of 896,220 shares traded, while the 50-day average volume stands at 786,410.

BSM stock has decreased by -11.81% in the last month. The company shares reached their 1-month lowest point of $16.01 on 12/20/22. With the stock rallying to its 52-week high on 11/07/22, shares of the company touched a low of $10.31 and a high of $20.24 in 52 weeks. It has reached a new high 48 times so far this year and achieved 55.37% or $5.72 in price. In spite of this, the price is down -20.70% from the 52-week high.

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Insider Transactions

BSM stock investors should be aware that Black Stone Minerals L.P. (BSM) stock had its last reported insider trading activity 55 days ago on Dec 07. In this transaction, the insider spent $102,866. President, CFO, Wood Jeffrey P., disposed of 40,000 shares at a price of $12.24 on Mar 01. The insider now owns more than $489,712 worth of shares.

Valuation Metrics

Black Stone Minerals L.P. (BSM) has a trailing price-to-earnings (P/E) ratio of 8.68. The stock’s beta is 1.08. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 5.66, the price-to-book (PB) ratio at 4.08, and the price-to-cash flow ratio at 56.25.

The company has a payout ratio of 79.30%. The company’s most recent quarterly dividend payment was $0.45 a share, representing a up of 7.14% from $0.42 last year. Its latest increase dividend $0.03 reported on Wednesday October 19 2022.

Financial Health

The quick ratio of Black Stone Minerals L.P. for the three months ended September 29 was 2.30, and the current ratio was 2.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.07 and a total debt to equity ratio of 0.07 for the quarter ending September 29. Its gross profit as reported stood at $187.32 million compared to revenue of $359.26 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Black Stone Minerals L.P.’s return on assets was 32.30%.

Earnings Surprise

For the three-month period that ended September 29, Black Stone Minerals L.P. had $60.0 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $326.45 million in the quarter, while revenues were grew 93.3%. The analyst consensus anticipated Black Stone Minerals L.P.’s latest quarter earnings to come in at $0.4 per share, but it turned out to be $0.75, a 87.50% surprise. For the quarter, EBITDA amounted to $182.76 million. Shareholders own equity worth $209.41 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Black Stone Minerals L.P. (BSM) price momentum. RSI 9-day as of the close on 28 December was 35.92%, suggesting the stock is Neutral, with historical volatility in this time frame at 48.93%.

As of today, BSM’s price is $16.63 -4.24% or -$0.71 from its 5-day moving average. BSM is currently trading -12.77% lower than its 20-day SMA and +8.30% higher than its 100-day SMA. However, the stock’s current price level is -5.59% below the SMA50 and +35.90% above the SMA200.

The stochastic %K and %D were 37.05% and 40.32%, respectively, and the average true range (ATR) was 0.65. With the 14-day stochastic at 2.44% and the average true range at 0.64, the RSI (14) stands at 37.98%. The stock has reached -0.03 on the 9-day MACD Oscillator while the 14-day reading was at -0.20.

Analyst Ratings

KeyBanc Capital Markets launched coverage on Black Stone Minerals L.P. (NYSE: BSM) in its analyst report released on September 20, 2022. The firm assigned the stock an Overweight rating. The consensus rating for Black Stone Minerals L.P. (BSM) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell BSM, while 2 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 4 others rate it as a “buy”.

What is BSM’s price target for the next 12 months?

Analysts predict a range of price targets between $18.00 and $23.00, with a median target of $20.50. Taking a look at these predictions, the average price target given by analysts for Black Stone Minerals L.P. (BSM) stock is $20.67.

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