On December 31, 2024, Murray Stahl (Trades, Portfolio), CEO and Chairman of Horizon Kinetics, made a significant addition to the firm's portfolio by acquiring 261,819 shares of Permian Basin Royalty Trust (PBT, Financial) at a transaction price of $11.08 per share. This strategic move increased the firm's total holdings in PBT to 3,946,083 shares, reflecting a calculated approach to enhancing the firm's investment portfolio. The transaction represents 0.65% of the firm's portfolio and 8.50% of the total holdings in Permian Basin Royalty Trust, indicating a substantial commitment to this investment.

About Murray Stahl (Trades, Portfolio) and Horizon Kinetics

Murray Stahl (Trades, Portfolio) is a prominent figure in the investment world, serving as the Chief Executive Officer and Chairman of Horizon Kinetics. With over thirty years of experience, Stahl co-founded Horizon Kinetics and is responsible for overseeing the firm's proprietary research. The firm is known for its fundamental value and contrarian-oriented investment philosophy, emphasizing long-term investment horizons. Stahl's extensive experience includes roles in various investment companies and exchanges, such as the Minneapolis Grain Exchange and the Bermuda Stock Exchange. Horizon Kinetics' top holdings include CACI International Inc (CACI, Financial), Wheaton Precious Metals Corp (WPM, Financial), and Texas Pacific Land Corp (TPL, Financial).

Permian Basin Royalty Trust Overview

Established in 1980, Permian Basin Royalty Trust is a U.S.-based express trust that holds royalty interests in mature oil fields across Texas. The trust generates revenue primarily through royalties from its properties, including Waddell Ranch Properties and other mature producing oil fields. With a market capitalization of $510.366 million, PBT is a significant player in the oil and gas industry. The current stock price is $10.95, with a price-to-earnings ratio of 14.11. However, the stock is considered a possible value trap, with a GF Value of $18.82, suggesting investors should think twice before investing.

Impact of the Transaction

The acquisition of additional shares in Permian Basin Royalty Trust by Murray Stahl (Trades, Portfolio) has a notable impact on both the firm's portfolio and the stock itself. The transaction increased the firm's holdings in PBT to 3,946,083 shares, representing 8.50% of the total holdings in the trust. This strategic addition reflects the firm's confidence in the long-term potential of PBT, despite its current valuation challenges. The transaction also highlights the firm's commitment to its investment philosophy, which focuses on exploiting market short-term focus through independent, fact-based research.

Financial Metrics and Valuation

Permian Basin Royalty Trust's financial metrics reveal a mixed picture. The stock has experienced a year-to-date price change of -5.11%, with a three-year revenue growth of 34.10% and EBITDA growth of 36.70%. The [GF-Score](https://www.gurufocus.com/term/gf-score/PBT) of 73/100 indicates likely average performance. The trust's [Financial Strength](https://www.gurufocus.com/term/rank-balancesheet/PBT) is ranked 7/10, while its [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/PBT) is 8/10. However, the [Growth Rank](https://www.gurufocus.com/term/rank-growth/PBT) is relatively low at 3/10, and the [GF Value Rank](https://www.gurufocus.com/term/rank-gf-value/PBT) is 4/10, suggesting potential challenges in achieving significant growth.

Performance and Growth Indicators

Despite the challenges, Permian Basin Royalty Trust has shown resilience in its performance and growth indicators. The trust's [Operating Margin](https://www.gurufocus.com/term/operating-margin/PBT) growth is 0.40, and its [Piotroski F-Score](https://www.gurufocus.com/term/fscore/PBT) is 3, indicating moderate financial health. The [Altman Z score](https://www.gurufocus.com/term/zscore/PBT) of 121.25 suggests a strong likelihood of avoiding bankruptcy. However, the stock's [Momentum Rank](https://www.gurufocus.com/term/rank-momentum/PBT) is 4/10, reflecting potential volatility in its price movements.

Conclusion

Murray Stahl (Trades, Portfolio)'s strategic acquisition of additional shares in Permian Basin Royalty Trust underscores the firm's commitment to its investment philosophy and long-term value creation. While the stock's current valuation presents challenges, the firm's focus on independent research and contrarian views may offer opportunities for value investors. As the market continues to evolve, the firm's strategic addition to its portfolio could yield significant benefits in the future, provided the trust can navigate its current valuation and growth challenges effectively.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.