May 10, 2023 – Magnolia Oil & Gas (NYSE:MGY) reported strong quarterly earnings results on February 14th, exceeding analysts’ expectations with a remarkable $0.86 earnings per share. This outcome further affirm that the company remains in good stead with investors.
Magnolia’s revenue for the quarter was $349.04 million, slightly missing the consensus estimate of $351.53 million. Despite this minor deviation from projections, Magnolia still demonstrated significant profitability with a return on equity of 48.98% and a net margin of 50.72%.
Investment activity has been ample for MGY stock as hedge funds and institutional investors have made recent changes to their positions in the company. CI Investments Inc., CWM LLC, Parallel Advisors LLC, Trifecta Capital Advisors LLC, and Rockefeller Capital Management L.P. have all hedged their bets on the success of this thriving oil and gas firm.
As for its stock performance, MGY opened at $19.91 today with a one-year low of $18.01 and a high of $30.31. With its current market capitalization of $4.26 billion, Magnolia enjoys strong investor confidence despite a PE ratio of just 4.62%. Its beta factor stands at an impressive 2.15%, indicating lower volatility risk compared to other stocks.
The company’s financial stability is reinforced by its current ratio and quick ratio standing at healthy levels: both ratios are at 2:64 implying that it would have no trouble paying off current debts if required to do so in short order.
Overall, analysts predict continued prosperity for Magnolia Oil & Gas going forward given its robust quarterly performance as well as its healthy balance sheet and investment backing from professional traders who hold more than 98% of stake in the business currently.
Investors looking to ride on the crest of this winning wave will find that Magnolia Oil & Gas offers a superb opportunity to buy into a well-established and lucrative company with steady support.
Expert Analysts Offer Mixed Projections for Magnolia Oil & Gas Co.
Magnolia Oil & Gas Co. (MGY), a leading oil exploration and production company, has recently been the subject of several research reports by expert analysts. KeyCorp’s most recent report, issued on May 7th, projects a decrease in Magnolia Oil & Gas’ earnings per share (EPS) estimates for Q2 2023, with estimated EPS falling from $0.63 to $0.60.
Despite this news, many other research reports continue to support MGY’s success and potential growth in the future. For example, Piper Sandler lowered their price objective on the stock but maintained an “overweight” rating on April 19th. Meanwhile, Roth Capital reiterated their “buy” rating on February 14th and Credit Suisse Group raised their price objective from $28 to $29 while also giving the stock a “buy” rating.
The consensus estimate for Magnolia Oil & Gas’ current full-year earnings stands at $2.63 per share while KeyCorp estimates its earnings for Q3 2023 at $0.69 EPS and Q4 2023 at $0.72 EPS, among others.
In addition to these projections, Magnolia Oil & Gas recently announced that it will pay a quarterly dividend of $0.115 per share on June 1st to shareholders of record as of May 11th. This represents an annualized dividend payout ratio of just over 10% based on the current stock price.
Overall, despite some fluctuations in EPS estimates and some more cautious assessments by some analysts, Magnolia Oil & Gas remains a steady performer in the oil industry with many experts viewing it as having strong long-term growth potential.
