Insider Trading May 22, 2026 05:19 PM

SoftVest, LP Increases Stake in Cross Timbers Royalty Trust Amid Market Valuation Questions

The investment firm acquired a significant block of beneficial interests as the trust approaches 52-week highs.

By Ajmal Hussain CRT

SoftVest, LP, a major shareholder in Cross Timbers Royalty Trust (CRT), recently increased its ownership stake by acquiring 18,902 Units of Beneficial Interest. This purchase was made on May 20, 2026, for $205,464, occurring as the trust trades near its 52-week high and exhibiting a strong year-to-date return.

SoftVest, LP Increases Stake in Cross Timbers Royalty Trust Amid Market Valuation Questions
CRT

Key Points

  • The acquisition by SoftVest, LP suggests continued institutional interest in increasing exposure to CRT.
  • CRT has maintained dividend payouts for an impressive run of 35 consecutive years, indicating a historical commitment to income generation.
  • The trust's current yield stands at 3.3%, offering a measurable return component alongside capital appreciation potential.

SoftVest, LP has executed an expansion of its holdings in Cross Timbers Royalty Trust (NASDAQ:CRT), further solidifying its position as a significant shareholder. On May 20, 2026, the firm acquired 18,902 Units of Beneficial Interest, representing a direct increase in its investment into the trust.

The total cost for this recent acquisition amounted to $205,464. Analysis of the transaction details reveals that the units were purchased at varying price points, ranging from $10.50 to $11.00 per unit. The weighted average price realized by SoftVest, LP for these shares was calculated at $10.87.

This purchasing activity took place when CRT's valuation approached its 52-week high of $11.10. Furthermore, the trust has demonstrated considerable performance, posting a strong year-to-date return of 37%. Despite this upward momentum, current analysis from InvestingPro suggests that the trust may be overvalued relative to its established Fair Value estimate.

Ownership Structure and Beneficiaries

The securities acquired are held directly by SoftVest, LP. However, the beneficial ownership structure also includes related parties. Specifically, SoftVest GP I, LLC operates as the general partner of SoftVest, LP. Consequently, both SoftVest GP I, LLC and Eric L. Oliver, who serves as the managing member of SoftVest GP I, LLC, are considered to beneficially own these securities. It is important to note that Mr. Oliver has formally disclaimed any beneficial ownership beyond his pecuniary interest in the matter.

Following this transaction, the combined holdings of SoftVest, LP and its related entities now account for 818,549 Units of Beneficial Interest in CROSS TIMBERS ROYALTY TRUST. The trust itself continues to offer a dividend yield of 3.3% and has maintained consistent dividend payments over an extended period of 35 consecutive years.

Market Context and Analysis

The recent acquisition by SoftVest, LP occurs against the backdrop of CRT's strong performance trajectory. While the year-to-date return is notable at 37%, the market valuation raises questions regarding its relationship to intrinsic worth. The fact that InvestingPro suggests an overvaluation relative to the Fair Value estimate introduces a layer of caution into the investment narrative, despite the recent price action near the 52-week high.

The consistent dividend payments and the current yield of 3.3% provide key metrics for investors assessing income stability. The accumulation of ownership by SoftVest, LP further underscores its confidence or interest in maintaining a substantial position within the royalty trust structure.

Investment Considerations

For potential stakeholders analyzing CRT's trajectory, several points emerge from this recent data: