5 Most Undervalued Utility Stocks to Buy According to Hedge Funds

4. Black Hills Corporation (NYSE:BKH)

Latest P/E Ratio: 13.3

Number of Hedge Fund Holders: 24

Black Hills Corporation (NYSE:BKH) is a utility company based in Rapid City, South Dakota. It serves 1.3 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming.

As of November 1, Black Hills Corporation (NYSE:BKH) released the financial results for Q3 2023. Its revenues declined by 12% y-o-y to $407 million, while its net income surged by 30% y-o-y to $45 million. The normalized EPS was recorded at $0.67 for the quarter, which exceeded consensus estimates by $0.16.

Similar to other utility companies on our list, Black Hills Corporation (NYSE:BKH) also pays regular dividends. In October, its board of directors declared a quarterly dividend of $0.625 per share. Its shares had a dividend yield of 4.90%, as of November 22.

According to the Insider Monkey data on 910 leading hedge funds, 24 hedge funds were long Black Hills Corporation (NYSE:BKH) shares as of Q3 2023, with the total shares held by hedge funds valued at $193 million. Stuart J. Zimmer’s Zimmer Partners was the largest hedge fund shareholder with ownership of 1.3 million shares valued at $64 million.