Magnolia Oil & Gas (NYSE:MGY) Stock Price Down 5.5% – Should You Sell?

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

Analyst Ratings Changes

Several research analysts recently weighed in on MGY shares. Citigroup cut their target price on Magnolia Oil & Gas from $29.00 to $27.00 and set a “neutral” rating on the stock in a research report on Tuesday, August 11th. Johnson Rice raised shares of Magnolia Oil & Gas from a “hold” rating to an “accumulate” rating and reduced their price target for the company from $33.00 to $32.00 in a research report on Monday, August 17th. Wall Street Zen upgraded Magnolia Oil & Gas from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Truist Financial raised Magnolia Oil & Gas from a “hold” rating to a “buy” rating and upped their target price for the stock from $32.00 to $33.00 in a research report on Tuesday, July 28th. Finally, Mizuho upgraded Magnolia Oil & Gas to a “strong-buy” rating in a research note on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $31.71.

Magnolia Oil & Gas Price Performance

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 business’s fifty day simple moving average is $26.33 and its 200 day simple moving average is $27.86. The stock has a market cap of $6.34 billion, a price-to-earnings ratio of 11.66 and a beta of 0.70.

Magnolia Oil & Gas (NYSE:MGY) last announced its earnings results on Wednesday, August 5th. The company reported $0.99 earnings per share for the quarter, beating the consensus estimate of $0.93 by $0.06. Magnolia Oil & Gas had a return on equity of 21.04% and a net margin of 28.77%.The company had revenue of $478.81 million during the quarter, compared to the consensus estimate of $458.10 million. During the same period last year, the firm earned $0.41 earnings per share. The company’s revenue was up 50.1% on a year-over-year basis. Research analysts predict that Magnolia Oil & Gas Corp will post 2.91 EPS for the current fiscal year.

Magnolia Oil & Gas Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Monday, August 10th were issued a $0.18 dividend. This is an increase from Magnolia Oil & Gas’s previous quarterly dividend of $0.17. This represents a $0.72 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend was Monday, August 10th. Magnolia Oil & Gas’s dividend payout ratio (DPR) is currently 31.58%.

Insiders Place Their Bets

In other Magnolia Oil & Gas news, Director David Khani acquired 8,000 shares of the company’s stock in a transaction on Friday, August 7th. The shares were bought at an average cost of $25.00 per share, for a total transaction of $200,000.00. Following the acquisition, the director directly owned 30,622 shares of the company’s stock, valued at $765,550. This trade represents a 35.36% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.92% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Magnolia Oil & Gas

Institutional investors have recently made changes to their positions in the company. Tidal Investments LLC increased its stake in Magnolia Oil & Gas by 34.3% during the second quarter. Tidal Investments LLC now owns 93,383 shares of the company’s stock valued at $2,389,000 after purchasing an additional 23,833 shares during the last quarter. Integrated Wealth Concepts LLC bought a new position in shares of Magnolia Oil & Gas in the 2nd quarter worth about $72,000. IFP Advisors Inc boosted its holdings in shares of Magnolia Oil & Gas by 12.2% in the 2nd quarter. IFP Advisors Inc now owns 9,180 shares of the company’s stock valued at $235,000 after buying an additional 999 shares during the period. Allworth Financial LP boosted its holdings in shares of Magnolia Oil & Gas by 11.0% in the 2nd quarter. Allworth Financial LP now owns 5,760 shares of the company’s stock valued at $147,000 after buying an additional 571 shares during the period. Finally, Arizona State Retirement System grew its position in shares of Magnolia Oil & Gas by 3.3% during the 2nd quarter. Arizona State Retirement System now owns 49,947 shares of the company’s stock valued at $1,278,000 after buying an additional 1,579 shares during the last quarter. 94.73% of the stock is currently owned by institutional investors.

Magnolia Oil & Gas Company Profile

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.