Black Hills (NYSE:BKH) Shares Gap Up After Analyst Upgrade

Black Hills Corporation (NYSE:BKH)’s stock price gapped up before the market opened on Wednesday after BMO Capital Markets raised their price target on the stock from $83.00 to $86.00. The stock had previously closed at $70.74, but opened at $74.79. BMO Capital Markets currently has an outperform rating on the stock. Black Hills shares last traded at $75.9770, with a volume of 587,478 shares traded.

Other equities research analysts also recently issued reports about the company. Freedom Broker raised Black Hills from a “hold” rating to a “buy” rating and lifted their target price for the stock from $69.00 to $78.00 in a research report on Wednesday. Oppenheimer set a $78.00 price target on Black Hills in a report on Thursday, June 11th. Bank of America raised their price objective on Black Hills from $87.00 to $97.00 and gave the stock a “buy” rating in a research report on Monday, September 21st. Wall Street Zen raised Black Hills from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Finally, Weiss Ratings upgraded Black Hills from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, July 24th. Seven research analysts have rated the stock with a Buy rating, According to data from MarketBeat, Black Hills presently has a consensus rating of “Buy” and an average price target of $82.71.

Key Headlines Impacting Black Hills

Here are the key news stories impacting Black Hills this week:

• Positive Sentiment: Google data-center agreement creates a significant growth catalyst. Black Hills signed definitive agreements to serve Google’s planned Cheyenne, Wyoming, data center through 2048. The project is expected to require approximately $1.8 billion of investment from 2027 through 2029, including 564 megawatts of new natural-gas generation and management of a larger microgrid. The long-term contract provides greater revenue visibility and positions BKH as an important power supplier to the artificial-intelligence infrastructure buildout. Why Black Hills BKH Stock Is Up Today
• Positive Sentiment: Customer financing may reduce project and balance-sheet risk. Reports say Alphabet will directly support the project, including approximately $399 million in refundable advances for long-lead equipment. That funding could help Black Hills manage construction costs, while the contract’s long duration and capital-recovery provisions may reduce concerns about stranded assets and earnings volatility. The projected economics remain estimates and depend on successful execution and regulatory approvals. Alphabet’s 1.8 Billion Black Hills Deal Powers AI Data Center Push
• Positive Sentiment: Analyst sentiment improved. Freedom Broker upgraded BKH from “hold” to “buy” and raised its price target to $78 from $69, reinforcing the positive reaction to the Google agreement. The upgrade follows a recent earnings beat, when Black Hills reported quarterly EPS of $0.54 versus a $0.41 consensus estimate. Freedom Broker Upgrades Black Hills Corp
• Neutral Sentiment: Upcoming earnings event could add volatility. Black Hills scheduled the release of its 2026 third-quarter results and a conference call. Investors will likely focus on project timing, financing, capital spending, regulatory developments, and whether management updates its fiscal 2026 EPS guidance of $4.25–$4.45. Black Hills Corp Schedules 2026 Third-Quarter Earnings Release and Conference Call

Institutional Investors Weigh In On Black Hills

Several hedge funds have recently bought and sold shares of BKH. BlackRock Inc. purchased a new position in Black Hills during the 2nd quarter valued at about $928,675,000. Engineers Gate Manager LP increased its holdings in shares of Black Hills by 17,790.3% in the 4th quarter. Engineers Gate Manager LP now owns 849,073 shares of the utilities provider’s stock valued at $58,943,000 after purchasing an additional 844,327 shares during the period. Corient Private Wealth LP purchased a new stake in shares of Black Hills in the second quarter worth approximately $3,691,000. Bank of New York Mellon Corp acquired a new stake in shares of Black Hills during the second quarter worth approximately $56,841,000. Finally, Pictet Asset Management Holding SA boosted its holdings in shares of Black Hills by 5,286.1% during the first quarter. Pictet Asset Management Holding SA now owns 593,543 shares of the utilities provider’s stock worth $41,198,000 after purchasing an additional 582,523 shares during the period. 86.71% of the stock is owned by hedge funds and other institutional investors.

Black Hills Stock Performance

The firm’s fifty day moving average is $72.23 and its 200 day moving average is $72.95. The firm has a market capitalization of $5.84 billion, a price-to-earnings ratio of 19.34, a PEG ratio of 3.00 and a beta of 0.68. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.52 and a quick ratio of 0.41.

Black Hills (NYSE:BKH) last released its earnings results on Wednesday, August 5th. The utilities provider reported $0.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.41 by $0.13. The company had revenue of $452.80 million during the quarter, compared to the consensus estimate of $490.89 million. Black Hills had a net margin of 13.01% and a return on equity of 7.98%. The company’s revenue was up 3.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.38 EPS. Black Hills has set its FY 2026 guidance at 4.250-4.450 EPS. On average, analysts predict that Black Hills Corporation will post 4.34 EPS for the current fiscal year.

Black Hills Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Monday, August 17th were paid a $0.7030 dividend. The ex-dividend date was Monday, August 17th. This represents a $2.81 dividend on an annualized basis and a yield of 3.7%. Black Hills’s payout ratio is 70.96%.

About Black Hills

Black Hills Corporation (NYSE:BKH) is a regulated utility holding company headquartered in Rapid City, South Dakota. Through its operating subsidiaries, the company provides electric and natural gas utility services to residential, commercial, industrial and other customers.

Black Hills owns and operates electric generation, transmission and distribution facilities, as well as natural gas distribution, storage and transportation infrastructure. Its electric utilities serve customers in Colorado, Montana, South Dakota and Wyoming, while its natural gas utilities operate in Arkansas, Colorado, Iowa, Kansas, Nebraska and Wyoming.

The company traces its history to the development of utility services in the Black Hills region and was incorporated as Black Hills Corporation in 1941.