Latest news with #SitioRoyaltiesCorp
Yahoo
2 days ago
- Business
- Yahoo
Why Sitio Royalties Corp. (STR) Gained This Week
The share price of Sitio Royalties Corp. (NYSE:STR) surged by 13.29% between May 29 and June 5, 2025, putting it among the Energy Stocks that Gained the Most This Week. Let's shed some light on the development. A close-up of an oil derrick against a colorful sunset sky, a symbol of the company's success. Sitio Royalties Corp. (NYSE:STR) received a boost this week after it was announced that the company is set to be acquired by Viper Energy, a subsidiary of Diamondback Energy. The all-equity deal is valued at around $4.1 billion, including Sitio's net debt of approximately $1.1 billion as of March 31, 2025. The transaction is subject to customary regulatory approvals and is expected to close in the third quarter of this year. Chris Conoscenti, CEO of Sitio Royalties Corp. (NYSE:STR), stated: 'We are excited to announce the combination of two leading minerals companies with a shared strategic vision of integrating the highest quality assets to create a truly differentiated investment opportunity for shareholders. While we acknowledge the potential of STR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and Disclosure: None.
Yahoo
5 days ago
- Business
- Yahoo
Why Sitio Royalties Corp. (STR) Skyrocketed On Tuesday
We recently published a list of . In this article, we are going to take a look at where Sitio Royalties Corp. (NYSE:STR) stands against other Tuesday's best performers. Sitio Royalties saw its share prices increase by 15.30 percent on Tuesday to finish at $19.97 apiece following news that it is set to be acquired by Viper Energy Inc. for $4.1 billion. In a statement, Viper Energy said it entered into a definitive agreement with Sitio Royalties Corp. (NYSE:STR), under which the former will acquire the latter in an all-stock transaction, including its net debt of approximately $1.1 billion. A close-up of an oil derrick against a colorful sunset sky, a symbol of the company's success. Under the transaction, each STR Class A stockholder will be able to receive 0.4855 Class A common shares of a new merger company. Meanwhile, shareholders of Sitio's operating subsidiary will get 0.4855 units of Viper's operating subsidiary. Lastly, Class C shareholders of Sitio Royalties Corp. (NYSE:STR) will be able to receive Class B stock in the merger company. 'The transaction was unanimously approved by the Board of Directors of each company and has been approved by the written consent of Diamondback as Viper's majority stockholder,' Viper Energy said. The transaction is subject to customary regulatory approvals and is expected to close in the third quarter of 2025. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Why Sitio Royalties Corp. (STR) Skyrocketed On Tuesday
We recently published a list of . In this article, we are going to take a look at where Sitio Royalties Corp. (NYSE:STR) stands against other Tuesday's best performers. Sitio Royalties saw its share prices increase by 15.30 percent on Tuesday to finish at $19.97 apiece following news that it is set to be acquired by Viper Energy Inc. for $4.1 billion. In a statement, Viper Energy said it entered into a definitive agreement with Sitio Royalties Corp. (NYSE:STR), under which the former will acquire the latter in an all-stock transaction, including its net debt of approximately $1.1 billion. A close-up of an oil derrick against a colorful sunset sky, a symbol of the company's success. Under the transaction, each STR Class A stockholder will be able to receive 0.4855 Class A common shares of a new merger company. Meanwhile, shareholders of Sitio's operating subsidiary will get 0.4855 units of Viper's operating subsidiary. Lastly, Class C shareholders of Sitio Royalties Corp. (NYSE:STR) will be able to receive Class B stock in the merger company. 'The transaction was unanimously approved by the Board of Directors of each company and has been approved by the written consent of Diamondback as Viper's majority stockholder,' Viper Energy said. The transaction is subject to customary regulatory approvals and is expected to close in the third quarter of 2025. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
17-04-2025
- Business
- Yahoo
Is Sitio Royalties Corp. (STR) a Dividend Trap to Avoid in 2025?
We recently put together a list of . Here, we take a detailed look at Sitio Royalties Corp. (NYSE:STR) and its ranking among the top 10 dividend trap stocks investors should avoid in 2025. During uncertain times, dividend stocks are often seen as a safe bet for investors to cushion the impact. In 2025, however, the cushion may be carrying more risk than reward. Shifting market conditions are revealing signs of trouble underneath the stocks, which were initially appreciated as reliable dividend payers. No, we are not talking just about volatility or short-term noise; we are talking about companies that would seem irresistible with their attractive yield but carry risks capable of eroding your capital. READ ALSO: . A thick fog of uncertainty rests over the investing climate in 2025. Earnings expectations for the large caps have been slashed at an alarming rate in the past few weeks alone. CNBC noted that some of the analysts, who initially predicted a 5% earnings growth for the market indices, have revised their estimation to a flat or even negative outcome by next month. Various companies have pulled their guidance together, reflecting not just caution but an absence of visibility to make the forecast. And by extension, the dividend-paying stocks have become trickier than before. What's the cause? The U.S. tariffs. President Trump, though, announced a 90-day tariff-pause on dozens of countries, slapped a whopping 145% tariff on Chinese goods into the U.S. China retaliated with a 125% tariff on U.S. imports, effectively sealing off a $650 billion trading corridor, which was considered a lifeline of multiple industries both in the U.S. and China. According to Reuters, this trade war between two of the largest economies in the world has sent ripples across the already shaken global asset markets. Companies, including the consistent dividend payers, are now facing cost shocks and a sharp decline in their profit margin, which are bound to affect the income of the investors. Shifts in investor sentiment are also becoming part of these challenges. Along with institutional investors, retail investors are also adopting a wait-and-see approach. Mergers and acquisitions processes are slowing down, capital expenditures are being slashed, and supply chains are being restructured to handle the current market issues rather than the long-term challenges. Recent earnings calls are showing the CFOs prioritizing liquidity and short-term cost optimization. These actions are highly likely to affect the dividends, as it is one of the easiest budget line items to slash. The situation underscores the importance of not blindly chasing after yields. High dividend yields could potentially be masking a weakness, including earnings fall, escalating debt, or unsustainable payout ratios. In this regard, attractive yields are becoming a trap that can lure investors, only to collapse under pressure when market conditions worsen. With uncertainty outweighing opportunity in 2025, it is immensely necessary to separate solid dividend plays from ticking time bombs. When putting together our list of top 10 dividend trap stocks to avoid, we have followed a few criteria. Primarily, we have set the minimum market cap at $2 billion since investors are less likely to fall for stocks with a smaller cap. The stocks that are on a declining trend have been considered for this article. Such low performance reflects issues within the business operations that have made an impact on the value of the stocks. Also, we have included only those stocks with a dividend yield of 5% or more to ensure that these stocks are attractive enough to lure investors. All our picks have a payout ratio of 100% or more, suggesting an earnings issue within the company, which the investors need to be aware of. All the data used in the article were taken from financial databases and analyst reports, with all information updated as of April 11, 2025. Our picks are ranked based on their dividend yield. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up of an oil derrick against a colorful sunset sky, a symbol of the company's in Colorado, Sitio Royalties Corp. (NYSE:STR) acquires, owns, and manages mineral and royalty interests in oil and gas-producing regions across the U.S., primarily within the Permian and Anadarko Basins. Unlike the traditional exploration companies, Sitio Royalties generates its revenue through lease and production royalties. It provides the benefits of shedding operational costs. The scale-driven exposure offered by the company to hydrocarbon production particularly helps the company improve its market share. The 37.47% drop in performance in the past 1 year indicates fragile income foundations that could not effectively return value to the shareholders. For instance, Sitio Royalties Corp. (NYSE:STR) has made huge investments in human resources and systems, which caused the general and administrative expenses to rise by 25% year-over-year in the fourth quarter of 2024. Additionally, the accelerated decline in price takes a least favorable stand against the acquisition activities of the company. Also, land complexities are creating challenges in the Appalachian regions, which is expected to limit the company's acquisition activities there, thus reducing revenue for 2025 and making the company more financially vulnerable. Sitio Royalties Corp. (NYSE:STR) offers a dividend yield of 10.05%, the highest in our list. But the outrageous 306.12% payout ratio rings the alarm bell, signaling income-seeking investors to steer clear of this dividend trap. Overall, STR ranks 1st on our list of top dividend trap stocks investors should avoid in 2025. While we acknowledge the potential of STR, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than STR but trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
02-04-2025
- Business
- Yahoo
Is Sitio Royalties Corp. (STR) the Best Stock to Buy According to Howard Marks' Oaktree Capital Management?
We recently published a list of . In this article, we are going to take a look at where Sitio Royalties Corp. (NYSE:STR) stands against other best stocks to buy according to Howard Marks' Oaktree Capital Management. Howard Marks is an American billionaire and the co-chairman and founder of Oaktree Capital, a hedge fund located in Los Angeles, California, USA. Marks is one of the world's richest individuals, thanks to his hedge fund, which manages approximately $200 billion. The renowned investor, who graduated from the University of Pennsylvania and obtained an MBA from the University of Chicago, has a personal wealth estimated to be worth about $2.2 billion. In a January memo titled 'On Bubble Watch,' the famed investor pondered on one of his most prophetic calls: a 25-year-old article warning against the irrational behavior in dot-com companies. In his memo, Marks cited cautionary signs in today's markets, including above-average stock valuations, an overwhelming acceptance around AI, the dominance of the Magnificent 7, and the possibility that 'automated' buying of large-cap stocks has kicked in 'without regard for their intrinsic value.' Furthermore, the Oaktree CEO identified a critical aspect of stock market bubbles: the tendency of investors to rush in and buy stocks at excessively high prices. This phenomenon was evident during the dot-com boom when internet companies were frequently launched with inflated valuations and rose even higher on their first trading day. Currently, this trend is not happening. He also pointed out that innovations can leave investors without historical benchmarks to inform their growth expectations, making it easier for stock prices to soar under the belief that 'this time is different.' Moreover, in an interview with the Economic Times, the billionaire investor gave his thoughts on equity markets, stating that returns from credit seem to be more dependable. 'From the S&P, you're not going to get the historic return of 10% a year for the next decade. You will get something less and if that's true, then the returns described from credit are quite competitive and dependable.' He pointed out that, while the current Fed funds rate is 4.5%, the historical average over the last 70 years has been roughly 4.9%. Marks contends that the protracted low-interest environment from 2009 to 2021 rendered credit investments unappealing. However, when interest rates rise, fixed-income assets provide enticing returns. Marks also cited Goldman Sachs' recent projection that the S&P 500 will return only 3% annually over the next decade, as well as data from JP Morgan, which shows that when the S&P 500 is purchased at a P/E ratio similar to what it is now, historical returns over the following decade have ranged between 2% and -2% annually. For our list of the 12 best stocks to buy according to Howard Marks, we looked through the billionaire's Q4 2024 stock portfolio and ranked the following equities based on his hedge fund's stake value in each holding. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A close-up of an oil derrick against a colorful sunset sky, a symbol of the company's success. Sitio Royalties Corp. (NYSE:STR) is an energy company that acquires, owns, and manages mineral and royalty interests in prime basins around the United States. The company's portfolio includes mineral and royalty holdings in West Texas' Permian Basin. Sitio Royalties Corp.'s (NYSE:STR) Q4 earnings report revealed mixed results, with the company posting earnings per share of $0.09, which fell short of the expected $0.1217. That said, revenue spiked to $155.09 million, crossing the expected $147.5 million. Since going public in 2022, Sitio Royalties Corp.'s (NYSE:STR) total return of capital to shareholders has topped $840 million, including cash dividends and share repurchases, with 2024 accounting for more than $330 million. Moreover, Sitio declared a cash dividend of $0.41 per share of Common Stock for the fourth quarter of 2024. The dividend will be paid on March 28, 2025 to shareholders of record at the close of business on March 14, 2025. Overall, STR ranks 4th on our list of best stocks to buy according to Howard Marks' Oaktree Capital Management. While we acknowledge the potential of STR as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STR but trades at less than 5 times its earnings, check out our report about the . READ NEXT: and . Disclosure: None. This article is originally published at . 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