Investors demonstrated significant interest in the North European Oil Royalty Trust (NYSE:NRT) on Friday, as the stock experienced an unusual surge in options trading. The volume of put options purchased reached 2,030, marking an increase of approximately 6,900% compared to the average of just 29 put options. This sudden activity raises questions about investor sentiment toward the company.
Trading for North European Oil Royalty Trust opened at $5.73 on Friday, reflecting a modest increase of 0.6%. The stock has a market capitalization of $52.62 million and a price-to-earnings (P/E) ratio of 10.22. Over the past year, shares have fluctuated between a low of $3.88 and a high of $6.95. The company’s fifty-day and two-hundred-day simple moving averages are $5.71 and $5.30 respectively.
On August 29, 2023, the North European Oil Royalty Trust announced its quarterly earnings, reporting $0.26 earnings per share with revenue of $2.62 million. The firm demonstrated a remarkable net margin of 88.33% and a return on equity of 343.87%, indicating strong profitability metrics.
Dividend Increase and Analyst Ratings
The company also disclosed an increase in its quarterly dividend, set to be paid on November 26, 2023. Shareholders on record as of November 14, 2023 will receive a dividend of $0.31, up from the previous dividend of $0.26. This new dividend translates to an annualized amount of $1.24, resulting in a dividend yield of 21.7%. The ex-dividend date is November 14, 2023, with a current dividend payout ratio of 221.43%.
In terms of analyst coverage, Weiss Ratings reaffirmed a “hold (c)” rating for North European Oil Royalty Trust on October 14, 2023. Currently, one investment analyst has rated the stock with a Hold rating, leading to a consensus rating of “Hold,” according to data from MarketBeat.com.
Institutional Investor Activity
Recent activity among institutional investors has also influenced the stock. Kingstone Capital Partners Texas LLC acquired a new position in North European Oil Royalty Trust in the second quarter, valued at approximately $19,341,000. Additionally, Jane Street Group LLC purchased a stake worth $60,000 in the first quarter, while Susquehanna International Group LLP invested $134,000 in the third quarter.
Bank of America Corp DE increased its stake by 210.5% during the second quarter, now holding 29,500 shares valued at $148,000. Peapack Gladstone Financial Corp also raised its stake by 57.0%, bringing its total holdings to 44,600 shares worth $223,000. Overall, institutional investors and hedge funds now own 6.97% of the company’s stock.
North European Oil Royalty Trust operates as a grantor trust, holding royalty rights related to oil and gas production in various concessions in Germany. The trust has established agreements with subsidiaries of major companies, including ExxonMobil Corp and the Royal Dutch/Shell Group, further solidifying its presence in the energy sector.
