On Tuesday, April 25th, Matador Resources (NYSE:MTDR) released its quarterly earnings data which exceeded analysts’ consensus estimates. The energy company reported $1.50 earnings per share for the quarter, beating estimations of $1.24 by $0.26. However, despite exceeding expectations, MTDR’s revenue was down 19.7% on a year-over-year basis compared to analysts’ expected revenue of $514.24 million.
First Trust Advisors LP reduced their holdings in the energy company by 20.3% during the fourth-quarter, according to its most recent disclosure with the SEC. The firm owned around 0.70% of Matador Resources worth an estimated $47,250,000 at the end of the most recent financial quarter after selling approximately 209,979 shares during the period.
The progressive technology utilised by MTDR has been proved successful with impressive net margins and return on equities demonstrated at past financial quarters which is possibly a factor contributing towards stock buy from analysts reports published recently.The reports show that Roth Capital restated a “buy” rating on shares of Matador Resources in a research note released on Friday, February 17th while Truist Financial lifted their price objective on shares from $68.00 to $72.00 and gave it a “buy” rating on April 11th.
Additionally,Cowen also endorsed MTDR’s stock by lifting their price objective from $67.00 to $78 and giving it an “outperform” rating On January 25th.A new player StockNews.com joined in; starting coverage in late February and issuing a “hold” rating for the company.In contrast,two equities research analysts have rated the stock as hold ;contrasting eight buy ratings issued.Thus based on Bloomberg.com’s analysis ,a Moderate Buy” rating that places it within reasonable threshold .
With such bullish ratings from some of Wall Street’s most reputable analyst firms a positive outlook for the year prediction may be in favour of MTDR. However, caution should be exercised as an important consideration is that these are based on various assumptions concerning oil and gas prices and future price fluctuations in world markets. It is important to make one’s own assessments of MTDR’s potential before making any investment decisions.
Matador Resources Sees 87% Increase in Stake from Hedge Funds and Institutional Investors[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”MTDR” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]
Hedge Funds and Institutional Investors Increase Stake in Matador Resources by 87%
Matador Resources has seen a recent increase in investment from hedge funds and institutional investors. Belpointe Asset Management LLC rose to the occasion during the last quarter, purchasing a new stake valued at $57,000, while EverSource Wealth Advisors LLC increased their stake by 144.6% during the third quarter. FourThought Financial LLC and Madden Securities Corp also invested more capital, both increasing their respective stakes by over 70% in the third and fourth quarters of last year. Finally, Signaturefd LLC recently acquired an additional 377 shares during Q4 of 2016.
Institutional investors now hold an impressive 87% of Matador Resources’s $5.32 billion market cap stock. Matador opened at $44.68 on Friday with a PE ratio of 4.58 and a beta of 3.54; these figures suggest that there are compelling growth opportunities for this energy company.
The outlook for Matador Resources seems bullish, with two equities research analysts labeling the stock as “Moderate Buy”. Analysts also predict that investors will see dividends soon after the firm disclosed its quarterly dividend, with payments beginning on Thursday June 1st totaling $0.15 per share to shareholders recorded on Thursday May 11th.
Insider transactions may also have contributed to rising interest in this stock as evidence suggests share purchases were made due to confidence in upcoming growth prospects: Billy E Goodwin purchased shares worth $44,520 in March; Timothy E Parker purchased shares valued at nearly $200k; finally insiders bought over $500k worth of stocks during Q1 of 2017.
Finally, it should also be noted that Cowen recently labeled the stock as ‘outperform’, lifting their price objectives from $67 to $78 confirming a robust future outlook for Matador Resources and strong investor demand going forward.