Zacks Investment Research lowered shares of Matador Resources (NYSE:MTDR) from a hold rating to a strong sell rating in a report released on Friday morning.
According to Zacks, “Matador’s negative free cash flows over the past few years have increased the probability of more reliance on debt and equity capital for funding future growth projects. Matador’s cash balance declined by 48%, while long-term debt increased by over 84% in the first nine months of 2018. Even in 2017, the cash balances decreased by 52%. We are also concerned with Matador’s rising total expenses. During the third quarter, production taxes, transportation and processing expenses rose 29%, lease operating expenses rose 35% and general and administrative expenses rose 14%, respectively. Moreover in Permian, there is dearth of pipeline capacity for transporting oil to Gulf Coast export facilities, major refinery terminals and principal hubs like Cushing. This has compelled Midland operators to sell stranded oil at a large discount to that in Cushing. Therefore, the stock warrants a cautious stance.”
Several other equities research analysts have also issued reports on MTDR. SunTrust Banks lowered shares of Matador Resources from a buy rating to a hold rating and decreased their price target for the stock from $42.00 to $35.00 in a research note on Monday, September 24th. They noted that the move was a valuation call. Evercore ISI started coverage on shares of Matador Resources in a research note on Tuesday, September 25th. They set an in-line rating and a $38.00 price target for the company. Oppenheimer started coverage on shares of Matador Resources in a research note on Wednesday, October 3rd. They set an outperform rating and a $43.00 price target for the company. Wells Fargo & Co decreased their price target on shares of Matador Resources from $43.00 to $38.00 and set an outperform rating for the company in a research note on Tuesday, October 23rd. Finally, Stifel Nicolaus set a $38.00 price target on shares of Matador Resources and gave the stock a buy rating in a research note on Thursday, November 1st. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating and ten have issued a buy rating to the company’s stock. The stock has a consensus rating of Hold and a consensus target price of $35.76.
Shares of MTDR stock traded down $0.44 during trading hours on Friday, hitting $19.34. 2,266,138 shares of the company were exchanged, compared to its average volume of 2,762,850. The company has a quick ratio of 0.63, a current ratio of 0.69 and a debt-to-equity ratio of 0.62. Matador Resources has a 52-week low of $13.97 and a 52-week high of $35.22. The firm has a market cap of $2.30 billion, a P/E ratio of 26.86, a PEG ratio of 0.53 and a beta of 1.79.
Matador Resources (NYSE:MTDR) last issued its quarterly earnings results on Wednesday, October 31st. The energy company reported $0.48 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.37 by $0.11. Matador Resources had a net margin of 22.69% and a return on equity of 11.17%. The company had revenue of $207.18 million during the quarter, compared to analyst estimates of $208.75 million. During the same quarter last year, the business posted $0.11 EPS. Matador Resources’s quarterly revenue was up 64.1% compared to the same quarter last year. As a group, equities analysts expect that Matador Resources will post 1.65 EPS for the current year.
In other news, EVP Van H. Singleton II purchased 2,005 shares of the business’s stock in a transaction on Thursday, December 6th. The stock was purchased at an average cost of $22.26 per share, with a total value of $44,631.30. The purchase was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Reynald Baribault purchased 1,500 shares of the business’s stock in a transaction on Friday, December 14th. The stock was purchased at an average cost of $17.47 per share, with a total value of $26,205.00. Following the completion of the acquisition, the director now owns 26,659 shares in the company, valued at $465,732.73. The disclosure for this purchase can be found here. Over the last ninety days, insiders purchased 33,005 shares of company stock valued at $758,302. 11.10% of the stock is owned by insiders.
A number of large investors have recently made changes to their positions in the business. Canton Hathaway LLC bought a new stake in shares of Matador Resources during the 3rd quarter worth $116,000. Northstar Investment Advisors LLC bought a new stake in shares of Matador Resources during the 3rd quarter worth $205,000. Capital Fund Management S.A. bought a new stake in shares of Matador Resources during the 2nd quarter worth $207,000. Wesbanco Bank Inc. bought a new stake in shares of Matador Resources during the 3rd quarter worth $208,000. Finally, BB&T Corp bought a new stake in shares of Matador Resources during the 3rd quarter worth $232,000. 87.53% of the stock is owned by hedge funds and other institutional investors.
About Matador Resources
Matador Resources Company, an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. It operates in two segments, Exploration and Production, and Midstream. The company primarily holds interests in the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas.
Further Reading: Net Asset Value
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Matador Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Matador Resources and related companies with MarketBeat.com's FREE daily email newsletter.