BKH Should I Buy
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Black Hills Corp (BKH) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 to invest. The company demonstrates strong fundamentals, positive earnings growth, consistent dividend increases, and favorable analyst sentiment. Despite minor short-term price fluctuations, the long-term outlook is solid.
The MACD is positive and contracting, indicating a potential bullish trend. The RSI is neutral at 53.876, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading above its pivot point (73.857) and is near its first resistance level (R1: 75.392). Overall, the technical indicators suggest a stable to slightly bullish trend.
Think Investments' acquisition of 537,637 shares, increasing its stake by $37.32 million, signals institutional confidence.
Black Hills has increased its dividend for the 56th consecutive year, appealing to long-term investors.
Positive earnings growth guidance for 2026 ($4.25-$4.45 per share) and YoY revenue growth of 6.43% in Q4
Analyst upgrades, with BMO Capital raising the price target to $84 and maintaining an Outperform rating.
Wells Fargo's downgrade of NorthWestern Energy (NWE) on concerns about the Black Hills merger introduces some uncertainty.
Gross margin dropped by 3.17% YoY in Q4 2025, which could indicate cost pressures.
In Q4 2025, revenue increased by 6.43% YoY to $635.5 million, net income rose by 7.03% YoY to $105 million, and EPS grew by 1.46% YoY to $1.39. However, gross margin declined by 3.17% YoY to 51.36%. The company also provided strong earnings guidance for 2026 ($4.25-$4.45 per share).
Analysts are generally positive on BKH. BMO Capital raised the price target to $84 and maintained an Outperform rating, citing incremental earnings potential. BofA raised the price target to $72 with a Neutral rating. Wells Fargo expressed concerns about the merger, but this appears to be an isolated view.
