How Has Black Hills (NYSE:BKH) Maintained Stability in the Utility Sector

February 05, 2025 12:00 AM PST | By Team Kalkine Media

How Has Black Hills (NYSE:BKH) Maintained Stability in the Utility Sector — Image source: shutterstock

Institutional Investment and Market Movements

Black Hills Corporation (NYSE:BKH) recently saw significant institutional shifts, with Pacer Advisors Inc. decreasing its holdings by 36% in Q4, selling 5,760 shares and retaining 10,236 shares valued at approximately $599,000. Other institutional investors made adjustments as well, including Versant Capital Management Inc., which increased its stake by 181.5%, and Blue Trust Inc., which grew its position by 84.9% during Q3.

UMB Bank n.a. also expanded its holdings by 83.3%, while new institutional investors such as Capital Performance Advisors LLP and Point72 DIFC Ltd entered the stock. With institutional ownership at 86.71%, Black Hills continues to hold strong financial backing from key stakeholders.

Stock Performance and Dividend Growth

Black Hills’ stock recently opened at $59.02, with a 52-week range of $49.33 to $65.59. The company maintains a market capitalization of $4.22 billion and financial ratios of PE at 15.86, P/E/G at 4.21, and a beta of 0.73, indicating moderate volatility.

The company announced a quarterly dividend increase to $0.676 per share, scheduled for early March. This brings the annualized dividend to $2.70 per share, yielding 4.58%. The payout ratio of 69.89% reflects strong financial management and stable cash flow.

Market Ratings and Analyst Evaluations

Recent financial firm assessments saw Scotiabank increasing its price target from $63.00 to $67.00. Market evaluations remain mixed, with five analysts maintaining a neutral rating. The consensus price target stands at $61.25, reflecting a balanced market outlook.

Business Operations and Industry Presence

Black Hills Corporation operates as a key player in the U.S. utility sector, focusing on electric and natural gas services. Its Electric Utilities segment serves 222,000 customers across states like Colorado, Montana, South Dakota, and Wyoming, with an energy generation capacity of 1,394 megawatts.

With a diversified energy portfolio and a commitment to stable dividend policies, Black Hills maintains its position as a reliable utility provider in the market.

Strategic Position and Long Term Growth

With sustained institutional backing, stable dividends, and a strong industry presence, Black Hills continues to attract financial interest. As the energy sector evolves, the company remains a key entity in utility infrastructure and services.

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