Insider Activity Report: Dorchester Minerals (DMLP)

Dorchester Minerals Operating LP, a major owner of Dorchester Minerals (DMLP), recently added 7,500 shares. The buy increased the fund’s holdings by 22 percent, and came to a total cost of $250,980.

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  • This marks the first insider activity of the year. The Operating LP was a buyer back in December, picking up nearly $1 million in shares across multiple transactions. Going further back, the company’s CEO and CFO both bought shares in November, paying nearly $350,000 in total.

    Overall, Dorchester Minerals insiders own 7.3 percent of shares, and institutions such as the Operating LP own a total of 22 percent of shares.

    The oil and natural gas royalty company is up 8 percent over the past year. That’s lagged the overall stock market, but is a strong showing for the energy sector. Revenues dropped just 3 percent last year.

    As a royalty company, Dorchester spots a high profit margin of 70 percent.

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  • Action to take: As an LP, Dorchester Minerals pays out its earnings as a distribution. The distribution gives shares a current yield of 11.1 percent, however that payout can be variable based on earnings.

    Income investors looking for current high yields may like shares at current prices.

    For traders, shares are in an uptrend. The May $30 calls, last going for about $2.40, are already about $1.50 in-the-money. They could see a further mid-double-digit increase on a further rally higher for shares in the coming months.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.

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