Harbor Capital Advisors Inc., a prominent investment firm, has recently made headlines with its new acquisition of a stake in Black Hills Co. (NYSE:BKH). According to the latest reports from the company’s Form 13F filing with the Securities & Exchange Commission, Harbor Capital Advisors Inc. has obtained 14,297 shares of Black Hills stock during the second quarter of this year. The total value of this stake is estimated to be approximately $862,000.
Black Hills Co., a well-known utilities provider, has been attracting significant attention from investors due to its steady performance and promising prospects. With Harbor Capital Advisors Inc.’s recent acquisition of a sizeable stake in the company, it signals their belief in Black Hills’ potential for growth and profitability.
In addition to this development, Black Hills Co. has also announced its quarterly dividend payment recently. Shareholders who were recorded on Friday, August 18th have received a dividend of $0.625 per share. This translates into an annualized dividend rate of $2.50 and an impressive dividend yield of 4.54%. The ex-dividend date for this particular payment was Thursday, August 17th.
It is noteworthy that Black Hills Co.’s dividend payout ratio currently stands at an impressive 67.02%. This figure indicates how much of its earnings are being distributed to shareholders in the form of dividends. A higher payout ratio is generally seen as a positive sign for investors as it demonstrates that the company is committed to returning profits back to shareholders.
These recent developments highlight Harbor Capital Advisors Inc.’s active involvement in seeking out investment opportunities with robust potential for growth and shareholder returns. By acquiring such a substantial stake in Black Hills Co., they have clearly expressed their confidence in the future prospects of both the company and its industry.
The acquisition also reflects favorably on Black Hills Co., showcasing that it continues to attract attention from well-respected and influential investment firms like Harbor Capital Advisors Inc. This, in turn, not only bolsters the company’s reputation but also further solidifies its status as a reliable and lucrative investment option.
Investors and market analysts will undoubtedly continue to monitor both Harbor Capital Advisors Inc. and Black Hills Co. closely following this recent acquisition. As developments unfold, it is likely that more insights will emerge regarding the strategic motivations behind this stake purchase and its potential impact on the utility provider’s future growth trajectory.
As of now, it appears that Black Hills Co.’s ability to generate consistent dividends coupled with its attractive dividend yield has piqued Harbor Capital Advisors Inc.’s interest. With time, investors will gain further clarity as to whether this newfound involvement from Harbor Capital Advisors Inc. brings about even greater opportunities for growth, profitability, and shareholder value for Black Hills Co.
Masco Corporation
MAS
Neutral
Updated on: 19/09/2023
Financial Health
Weak
Debt to equity ratio: Strong Sell
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Sell
DCF: Strong Buy
ROE: Sell
Black Hills Co.: Institutional Interest and Analysts’ Concerns
September 19, 2023 – Black Hills Co. (NYSE:BKH) continues to attract attention from hedge funds and institutional investors as they either increase or decrease their stakes in the company. Belpointe Asset Management LLC recently acquired a new stake in Black Hills worth approximately $29,000 during the fourth quarter. Similarly, Mitsubishi UFJ Trust & Banking Corp purchased a new position in the first quarter valued at $31,000, while GPS Wealth Strategies Group LLC also entered the market with a stake worth $35,000 during the same period.
CENTRAL TRUST Co boosted its position in Black Hills by 63.3% in the third quarter and now owns 890 shares of the utilities provider’s stock with a value of $61,000 after purchasing an additional 345 shares. Sound Income Strategies LLC also joined the race by acquiring a new position in Black Hills during the second quarter worth $62,000.
It is important to note that institutional investors and hedge funds currently hold 86.64% of Black Hills’ stock. This high degree of investor interest reflects confidence in the company’s future prospects and stability.
Meanwhile, several analysts have recently issued reports on the performance and outlook for Black Hills Co. StockNews.com initiated coverage on August 19th with a “sell” rating on the stock. Royal Bank of Canada lowered their price objective from $68.00 to $61.00 on September 6th and assigned it a “sector perform” rating.
TheStreet changed their rating from “b” to “c+” on September 5th, indicating uncertainty and potential challenges ahead for Black Hills. Wells Fargo & Company decreased their price objective from $66.00 to $62.00 on August 4th and gave it an “equal weight” rating, implying that the stock is expected to perform similarly to its industry peers.
Adding to this thread of subdued sentiment towards Black Hills, Mizuho also reduced their price objective from $60.00 to $56.00 on August 9th. In total, three research analysts have assigned a sell rating to the stock, while four have given it a hold rating. According to Bloomberg, the company currently has a consensus rating of “Hold” and an average target price of $62.17.
As of September 19th, Black Hills Co. opened at $55.12 with a 50-day simple moving average of $57.22 and a two-hundred-day simple moving average of $60.74. The company holds a market capitalization of approximately $3.70 billion and has a price-to-earnings ratio of 14.78, which suggests that its shares may be undervalued relative to its earnings potential.
Regarding the company’s financial performance, Black Hills announced its earnings results for the quarter ended August 2nd. The utilities provider reported earnings per share (EPS) of $0.35, falling short of the consensus estimate by ($0.03). This miss in EPS likely contributed to the recent negative ratings from analysts.
Black Hills reported a return on equity of 7.85% and a net margin of 9.46%. Its revenue for the quarter was $411.30 million compared to the consensus estimate of $552.13 million, resulting in a year-over-year decrease of 12.9%. In the same quarter last year, the company posted an EPS of $0.52.
Looking forward, analysts predict that Black Hills Co.’s EPS for the current year will be around 3.73 based on their estimates.
In conclusion, Black Hills Co.’s stock has captured the attention of hedge funds and institutional investors who have either increased or decreased their stakes in the company recently. Despite this influx in interest, several analysts have expressed doubt about its future performance by issuing sell and hold ratings. The company’s recent earnings report showed a decrease in revenue and EPS, further fueling concerns. As always, investors should carefully evaluate the available information before making any investment decisions.
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