Magnolia Oil & Gas (NYSE:MGY) Shares Gap Down – Here’s What Happened

Magnolia Oil & Gas Corp (NYSE:MGY)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $25.53, but opened at $24.13. Magnolia Oil & Gas shares last traded at $24.6350, with a volume of 11,061,935 shares.

Key Magnolia Oil & Gas News

Here are the key news stories impacting Magnolia Oil & Gas this week:

• Positive Sentiment: Magnolia agreed to buy WildFire Energy for about $4.06 billion, a move that expands its footprint in the Giddings field and could add scale, inventory, and future production growth. Reuters article on WildFire acquisition
• Positive Sentiment: The company also raised its dividend alongside the acquisition news, which may support investor confidence in Magnolia’s cash-return profile. MSN article on acquisition and dividend
• Neutral Sentiment: The board unanimously approved the WildFire transaction, indicating management sees strategic value in the deal. PR Newswire article on sale agreement
• Negative Sentiment: Magnolia launched and priced a public offering of Class A common stock, which can dilute existing shareholders and often weighs on the stock in the near term. Business Wire article on proposed offering
• Negative Sentiment: Market reaction has been mixed, with the stock falling as investors digest the cost of the acquisition and the potential share issuance needed to help fund it. MSN article on stock offering pressure

Analyst Ratings Changes

Several equities research analysts have recently commented on MGY shares. UBS Group reduced their target price on Magnolia Oil & Gas from $38.00 to $34.00 and set a “buy” rating for the company in a report on Friday, July 10th. Wells Fargo & Company reduced their price target on shares of Magnolia Oil & Gas from $32.00 to $31.00 and set an “equal weight” rating for the company in a research report on Wednesday, May 13th. Susquehanna raised their price target on shares of Magnolia Oil & Gas from $35.00 to $36.00 and gave the stock a “positive” rating in a report on Tuesday. KeyCorp reaffirmed an “overweight” rating on shares of Magnolia Oil & Gas in a research report on Monday, June 29th. Finally, Zacks Research lowered shares of Magnolia Oil & Gas from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, May 19th. Eight equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $31.75.

Magnolia Oil & Gas Stock Down 3.4%

The company has a debt-to-equity ratio of 0.19, a current ratio of 1.10 and a quick ratio of 1.10. The business has a 50 day simple moving average of $27.30 and a 200 day simple moving average of $27.36. The stock has a market cap of $4.56 billion, a PE ratio of 14.35 and a beta of 0.70.

Magnolia Oil & Gas (NYSE:MGY) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $0.54 earnings per share for the quarter, topping analysts’ consensus estimates of $0.51 by $0.03. The company had revenue of $358.51 million during the quarter, compared to the consensus estimate of $349.89 million. Magnolia Oil & Gas had a return on equity of 16.28% and a net margin of 24.40%.The business’s quarterly revenue was up 2.3% on a year-over-year basis. During the same period last year, the business earned $0.54 EPS. On average, equities research analysts forecast that Magnolia Oil & Gas Corp will post 2.67 EPS for the current fiscal year.

Magnolia Oil & Gas Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 1st. Investors of record on Tuesday, May 12th were given a dividend of $0.165 per share. This represents a $0.66 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend was Tuesday, May 12th. Magnolia Oil & Gas’s dividend payout ratio (DPR) is presently 38.37%.

Institutional Trading of Magnolia Oil & Gas

Institutional investors have recently added to or reduced their stakes in the business. Salomon & Ludwin LLC raised its holdings in shares of Magnolia Oil & Gas by 130.1% during the 4th quarter. Salomon & Ludwin LLC now owns 1,344 shares of the company’s stock valued at $29,000 after purchasing an additional 760 shares in the last quarter. Valued Wealth Advisors LLC acquired a new position in Magnolia Oil & Gas during the first quarter worth $29,000. EverSource Wealth Advisors LLC increased its position in Magnolia Oil & Gas by 165.5% during the second quarter. EverSource Wealth Advisors LLC now owns 1,386 shares of the company’s stock worth $31,000 after buying an additional 864 shares during the last quarter. Torren Management LLC bought a new position in Magnolia Oil & Gas during the fourth quarter valued at about $38,000. Finally, Harbor Investment Advisory LLC bought a new position in Magnolia Oil & Gas during the second quarter valued at about $39,000. 94.73% of the stock is currently owned by institutional investors and hedge funds.

Magnolia Oil & Gas Company Profile

Magnolia Oil & Gas Corp (NYSE: MGY) is an independent exploration and production company focused on the acquisition, development and optimization of onshore oil and gas assets in South Texas. Headquartered in Houston, the company concentrates its efforts on the Eagle Ford Shale, where it holds significant working interests in key producing counties.

The company’s core operations center on horizontal drilling and multi-stage completions designed to extract light crude oil, natural gas and natural gas liquids (NGLs).