Insider Trading Report: Dorchester Minerals LP (DMLP)

The Dorchester Minerals Operating company, the controlling entity for Dorchester Minerals LP (DMLP), recently added 9,000 shares. That increased the operating company’s holdings by 54 percent, and came to a total value of around $150,000.

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  • Besides buys from the operating company, a number of insiders, including the CEO, CFO, and COO have been buyers in the past year. The last insider sale occurred in March 2020, and was made by a company director.

    Overall, company insiders own about 8.2 percent of shares.

    The oil and gas company has been in a general uptrend in the past year, with shares beating the S&P 500 by 12 points. The company has seen big profit margins thanks to rising oil prices.

    Action to take: Structured as a partnership, most income passes through to its shareholders. That provides shareholders with a big dividend, about 7.7 percent at today’s prices. The dividend has also been recently increased, but will be volatile depending on the company’s earnings.

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  • For traders, companies with a lower dividend may prove a better play for betting on the price of oil and natural gas. That’s because a company’s share price is lowered automatically when a dividend is paid out. That said, if oil prices are rebounding again, the November $17.50 calls, last going for about $0.75, could deliver high-double-digit returns that beat even the stock’s high yield.

     

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