Citigroup Issues Pessimistic Forecast for Magnolia Oil & Gas (NYSE:MGY) Stock Price

Key Points

• Citigroup cut its price target on Magnolia Oil & Gas from $27 to $26 and maintained a neutral rating; the new target implies 13.12% upside from the stock’s then-current price.
• Analyst sentiment is more positive overall: Magnolia has a consensus “Moderate Buy” rating and an average target of $31.39, with 14 analysts rating it Buy or Strong Buy and six rating it Hold.
• The company beat quarterly earnings and revenue estimates, reporting $0.71 per share versus $0.58 expected and revenue up 58.2% year over year.

Magnolia Oil & Gas (NYSE:MGY - Get Free Report) had its target price dropped by analysts at Citigroup from $27.00 to $26.00 in a research note issued on Tuesday, Benzinga reports. The firm currently has a "neutral" rating on the stock. Citigroup's price objective indicates a potential upside of 13.12% from the company's current price.

Several other equities research analysts have also recently commented on the stock. Mizuho raised shares of Magnolia Oil & Gas to a "strong-buy" rating in a research report on Friday, July 31st. Truist Financial restated a "buy" rating and issued a $37.00 price objective (up from $35.00) on shares of Magnolia Oil & Gas in a report on Friday. Gerdes Energy Research upgraded Magnolia Oil & Gas from a "neutral" rating to a "buy" rating and set a $29.00 price objective for the company in a report on Tuesday. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Magnolia Oil & Gas in a research report on Wednesday, November 4th. Finally, Scotiabank initiated coverage on Magnolia Oil & Gas in a report on Wednesday, October 14th. They set a "sector outperform" rating and a $31.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have given a Hold rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $31.39.

Magnolia Oil & Gas Stock Up 1.4%

Shares of MGY stock traded up $0.32 during trading on Tuesday, reaching $22.98. The company's stock had a trading volume of 2,106,398 shares, compared to its average volume of 3,519,469. The business has a fifty day moving average price of $25.36 and a 200-day moving average price of $27.04. The company has a quick ratio of 1.58, a current ratio of 1.58 and a debt-to-equity ratio of 0.18. The company has a market cap of $5.45 billion, a price-to-earnings ratio of 10.30 and a beta of 0.72. Magnolia Oil & Gas has a one year low of $21.07 and a one year high of $32.76.

Magnolia Oil & Gas (NYSE:MGY - Get Free Report) last released its earnings results on Wednesday, November 4th. The company reported $0.71 earnings per share for the quarter, beating analysts' consensus estimates of $0.58 by $0.13. Magnolia Oil & Gas had a net margin of 25.82% and a return on equity of 25.19%. The business had revenue of $513.89 million during the quarter, compared to the consensus estimate of $474.39 million. During the same quarter last year, the firm earned $0.42 earnings per share. The firm's revenue for the quarter was up 58.2% compared to the same quarter last year. Analysts anticipate that Magnolia Oil & Gas will post 2.85 earnings per share for the current year.

Hedge Funds Weigh In On Magnolia Oil & Gas

A number of institutional investors have recently added to or reduced their stakes in MGY. Dimensional Fund Advisors LP lifted its stake in Magnolia Oil & Gas by 5.9% in the first quarter. Dimensional Fund Advisors LP now owns 7,028,781 shares of the company's stock valued at $221,910,000 after acquiring an additional 394,419 shares during the last quarter. Janus Henderson Group PLC grew its position in shares of Magnolia Oil & Gas by 2.8% in the 1st quarter. Janus Henderson Group PLC now owns 6,279,636 shares of the company's stock valued at $198,248,000 after acquiring an additional 170,174 shares during the period. Arrowstreet Capital Limited Partnership increased its stake in shares of Magnolia Oil & Gas by 790.8% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 6,263,808 shares of the company's stock worth $197,748,000 after purchasing an additional 5,560,619 shares during the last quarter. Bank of America Corp DE increased its stake in shares of Magnolia Oil & Gas by 20.5% during the 1st quarter. Bank of America Corp DE now owns 3,877,361 shares of the company's stock worth $122,408,000 after purchasing an additional 659,012 shares during the last quarter. Finally, Boston Trust Walden Corp increased its stake in shares of Magnolia Oil & Gas by 20.2% during the 3rd quarter. Boston Trust Walden Corp now owns 2,866,273 shares of the company's stock worth $67,329,000 after purchasing an additional 481,513 shares during the last quarter. 94.73% of the stock is currently owned by institutional investors and hedge funds.

About Magnolia Oil & Gas

Magnolia Oil & Gas Corporation is an independent exploration and production company focused on developing oil and natural gas resources in South Texas. Its operations target the Eagle Ford Shale and Austin Chalk formations. The company's assets are concentrated in the Karnes and Giddings areas. Its production includes crude oil, natural gas and natural gas liquids. Magnolia was established in 2018 through a business combination with TPG Pace Holdings. It is headquartered in Houston, Texas.

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