Stock of the Day

June 28, 2021

Black Stone Minerals (BSM)

$14.84
+$0.09 (+0.6%)
Market Cap: $3.14B

About Black Stone Minerals

Black Stone Minerals, L.P., together with its subsidiaries, owns and manages oil and natural gas mineral interests. It owns mineral interests in approximately 16.8 million gross acres, nonparticipating royalty interests in 1.8 million gross acres, and overriding royalty interests in 1.6 million gross acres located in 41 states in the United States. The company was founded in 1876 and is based in Houston, Texas.

Today's Trend

Black Stone Minerals, L.P. (NYSE: BSM) is trading lower today. The primary downward driver is fresh analyst downgrades to near‑term and FY earnings from KeyCorp, which reduced multiple quarterly and full‑year EPS forecasts; that cut materially lowers near‑term earnings expectations. Offsetting factors include a recent quarterly beat and a high dividend yield, while an insider sale has drawn attention but reads as liquidity taking rather than loss of faith.

  • Seeking Alpha published a bullish feature arguing BSM could benefit from rising data‑center energy demand and longer‑term electricity/fuel consumption tailwinds — supports a thematic, long‑term buyer case. Article
  • Fundamentals: BSM beat on its most recent quarter (EPS $0.31 vs. $0.27 est.; revenue $118.7M vs. $98.1M) and pays a generous quarterly dividend ($0.30 / $1.20 annualized, ~8.3% yield). Those items support income‑oriented demand for the shares. MarketBeat — BSM
  • Insider sale: SVP Luke Stevens Putman sold 29,386 shares at an average $14.45 (~$424.6k) and still holds ~732k shares (~$10.6M). Given the large remaining stake, the trade reads more like liquidity taking than a director‑level vote of no confidence. SEC Form 4
  • KeyCorp cut multiple EPS estimates across 2026–2027 (examples: FY2026 down from $1.20 to $0.87; FY2027 from $1.46 to $1.22; several quarterly trims), lowering near‑term earnings expectations — the primary negative catalyst likely weighing on the stock today. Research note summary

What to watch next: further analyst revisions, commodity/production news that affects royalty income, the next earnings release for confirmation of trends, and any additional insider activity or dividend commentary that could change the stock’s yield/risk profile.

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