Magnolia Oil & Gas (NYSE:MGY) Trading Down 5.5% – Here’s Why

Magnolia Oil & Gas Corp (NYSE:MGY) shares fell 5.5% during trading on Wednesday . The stock traded as low as $27.23 and last traded at $26.9920. 471,580 shares traded hands during trading, a decline of 86% from the average daily volume of 3,401,651 shares. The stock had previously closed at $28.55.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on MGY. Seaport Research Partners started coverage on shares of Magnolia Oil & Gas in a research note on Thursday, September 3rd. They issued a “neutral” rating for the company. Roth Capital cut their target price on Magnolia Oil & Gas from $30.00 to $29.00 and set a “buy” rating on the stock in a report on Thursday, July 23rd. Wall Street Zen raised Magnolia Oil & Gas from a “hold” rating to a “buy” rating in a research report on Saturday, August 8th. JPMorgan Chase & Co. upgraded Magnolia Oil & Gas from a “neutral” rating to an “overweight” rating and upped their price target for the stock from $32.00 to $33.00 in a research note on Tuesday, September 8th. Finally, Weiss Ratings raised Magnolia Oil & Gas from a “hold (c)” rating to a “buy (b-)” rating in a report on Tuesday, August 11th. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $31.71.

Magnolia Oil & Gas Stock Performance

The stock has a market cap of $6.09 billion, a price-to-earnings ratio of 11.27 and a beta of 0.70. The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.58 and a current ratio of 1.58. The stock’s 50-day simple moving average is $26.32 and its two-hundred day simple moving average is $27.83.

Magnolia Oil & Gas (NYSE:MGY) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.93 by $0.06. The company had revenue of $478.81 million for the quarter, compared to the consensus estimate of $458.10 million. Magnolia Oil & Gas had a return on equity of 21.04% and a net margin of 28.77%.The firm’s revenue was up 50.1% compared to the same quarter last year. During the same period last year, the business posted $0.41 earnings per share. Analysts forecast that Magnolia Oil & Gas Corp will post 2.94 earnings per share for the current year.

Magnolia Oil & Gas Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Monday, August 10th were given a $0.18 dividend. This is a positive change from Magnolia Oil & Gas’s previous quarterly dividend of $0.17. This represents a $0.72 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend was Monday, August 10th. Magnolia Oil & Gas’s dividend payout ratio (DPR) is currently 31.58%.

Insider Activity

In related news, Director David Khani acquired 8,000 shares of the stock in a transaction dated Friday, August 7th. The shares were acquired at an average price of $25.00 per share, for a total transaction of $200,000.00. Following the completion of the purchase, the director owned 30,622 shares in the company, valued at approximately $765,550. The trade was a 35.36% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.92% of the company’s stock.

Hedge Funds Weigh In On Magnolia Oil & Gas

Several large investors have recently bought and sold shares of the stock. Dimensional Fund Advisors LP raised its position in Magnolia Oil & Gas by 5.9% in the first quarter. Dimensional Fund Advisors LP now owns 7,028,781 shares of the company’s stock worth $221,910,000 after purchasing an additional 394,419 shares in the last quarter. Janus Henderson Group PLC boosted its holdings in Magnolia Oil & Gas by 2.8% during the first quarter. Janus Henderson Group PLC now owns 6,279,636 shares of the company’s stock valued at $198,248,000 after purchasing an additional 170,174 shares in the last quarter. Arrowstreet Capital Limited Partnership grew its stake in shares of Magnolia Oil & Gas by 790.8% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 6,263,808 shares of the company’s stock valued at $197,748,000 after purchasing an additional 5,560,619 shares during the period. TD Asset Management Inc raised its holdings in shares of Magnolia Oil & Gas by 26.6% in the 4th quarter. TD Asset Management Inc now owns 5,671,819 shares of the company’s stock worth $124,156,000 after buying an additional 1,193,458 shares in the last quarter. Finally, Epoch Investment Partners Inc. raised its holdings in shares of Magnolia Oil & Gas by 28.8% in the 4th quarter. Epoch Investment Partners Inc. now owns 5,330,064 shares of the company’s stock worth $116,675,000 after buying an additional 1,191,438 shares in the last quarter. 94.73% of the stock is currently owned by institutional investors and hedge funds.

About Magnolia Oil & Gas

Magnolia Oil & Gas Corporation (NYSE: MGY) is an independent energy company engaged in the acquisition, development, exploration and production of oil, natural gas and natural gas liquids. The company’s operations are concentrated in the South Texas region of the United States.

Magnolia primarily develops assets in the Giddings Field, which spans parts of Gonzales and Fayette counties in Texas. Its acreage targets formations including the Eagle Ford Shale and the Austin Chalk, where the company uses horizontal drilling and hydraulic fracturing to produce hydrocarbons.

The company was established in 2017 through a combination involving South Texas oil and gas assets and became a publicly traded company in 2018.