BSM Should I Buy
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Black Stone Minerals LP (BSM) is not a strong buy at the moment given the mixed technical indicators, neutral trading sentiment, and lack of significant positive catalysts. While the company shows potential for long-term growth with its plans for increased well activity and high yield, the recent insider sale near a 52-week high and declining revenue in the latest quarter suggest caution. For a beginner investor with a long-term horizon, it may be better to monitor the stock for more favorable entry points.
The MACD is negatively expanding below 0, indicating bearish momentum. RSI is neutral at 42.719, and moving averages are converging, showing no clear trend. Key support is at 13.048, and resistance is at 13.484. Overall, the technical indicators suggest a neutral to slightly bearish outlook.
The company expects substantial growth in 2026 with over 50 wells annually and a projected distribution payout exceeding $2 per unit in the next five to ten years. The stock also offers a high yield of 9%.
Senior Vice President sold shares near the 52-week high, which could signal a lack of confidence at current levels. Revenue dropped by 8.74% YoY in Q4 2025, and analysts have issued cautionary notes despite the high yield.
In Q4 2025, revenue decreased by 8.74% YoY to $95.18M. However, net income increased by 66.40% YoY to $64.86M, EPS rose by 72.22% YoY to 0.31, and gross margin improved to 79.21%. The financial performance shows strong profitability but declining top-line growth.
Piper Sandler raised the price target to $14 from $13 but maintained a Neutral rating. Analysts are cautious due to external geopolitical risks and the recent insider share sale.
