Matador Resources (NYSE:MTDR) Stock Rating Cut to Buy at Wall Street Zen

Key Points

• Wall Street Zen downgraded Matador Resources from “strong buy” to “buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $66.81.
• Matador reported strong quarterly results, with EPS of $2.61 beating estimates by $0.53 and revenue rising 32.5% year over year to $1.17 billion.
• Insiders bought 23,144 shares worth approximately $1.21 million over the past three months, while institutional investors own a substantial 91.98% of the company’s stock.

Matador Resources (NYSE:MTDR - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued on Saturday, Wall Street Zen reports.

Other equities research analysts also recently issued research reports about the company. Stifel Nicolaus initiated coverage on Matador Resources in a research report on Thursday, September 10th. They set a "buy" rating and a $66.00 price target for the company. Morgan Stanley raised their price objective on Matador Resources from $66.00 to $69.00 and gave the stock an "equal weight" rating in a report on Thursday. Seaport Research Partners assumed coverage on Matador Resources in a research note on Thursday, September 3rd. They issued a "neutral" rating on the stock. Wells Fargo & Company decreased their target price on Matador Resources from $77.00 to $76.00 and set an "overweight" rating for the company in a report on Wednesday. Finally, Mizuho upgraded Matador Resources to a "strong-buy" rating in a report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, Matador Resources currently has an average rating of "Moderate Buy" and a consensus price target of $66.81.

Matador Resources Stock Performance

NYSE MTDR opened at $57.47 on Friday. Matador Resources has a fifty-two week low of $37.14 and a fifty-two week high of $66.84. The stock has a market cap of $7.11 billion, a price-to-earnings ratio of 9.86 and a beta of 0.98. The business has a fifty day moving average of $55.91 and a 200-day moving average of $55.32. The company has a quick ratio of 0.62, a current ratio of 0.65 and a debt-to-equity ratio of 0.67.

Matador Resources (NYSE:MTDR - Get Free Report) last announced its earnings results on Wednesday, August 5th. The energy company reported $2.61 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.08 by $0.53. The firm had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.06 billion. Matador Resources had a net margin of 19.85% and a return on equity of 13.18%. Matador Resources's revenue was up 32.5% compared to the same quarter last year. During the same quarter last year, the business earned $1.53 earnings per share. As a group, analysts predict that Matador Resources will post 7.72 earnings per share for the current fiscal year.

Insider Activity at Matador Resources

In related news, CEO Joseph Foran acquired 555 shares of Matador Resources stock in a transaction on Wednesday, August 26th. The shares were bought at an average price of $54.49 per share, for a total transaction of $30,241.95. Following the completion of the purchase, the chief executive officer directly owned 4,772 shares in the company, valued at $260,026.28. This trade represents a 13.16% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Christopher P. Calvert bought 2,500 shares of the firm's stock in a transaction dated Thursday, August 27th. The stock was bought at an average cost of $56.64 per share, with a total value of $141,600.00. Following the transaction, the chief financial officer directly owned 44,000 shares of the company's stock, valued at approximately $2,492,160. This trade represents a 6.02% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders purchased 23,144 shares of company stock worth $1,211,793. Corporate insiders own 5.90% of the company's stock.

Institutional Investors Weigh In On Matador Resources

Hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new position in Matador Resources in the 2nd quarter worth approximately $573,936,000. Bank of New York Mellon Corp acquired a new position in shares of Matador Resources in the second quarter worth about $56,161,000. Bank of America Corp DE purchased a new position in Matador Resources in the second quarter valued at about $42,184,000. Value Holdings Management CO. LLC purchased a new position in Matador Resources in the second quarter valued at about $41,532,000. Finally, First Trust Advisors LP grew its position in shares of Matador Resources by 103.3% during the first quarter. First Trust Advisors LP now owns 1,595,415 shares of the energy company's stock worth $100,798,000 after buying an additional 810,808 shares in the last quarter. 91.98% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Matador Resources

Here are the key news stories impacting Matador Resources this week:

• Positive Sentiment: Truist raised its price target to $65, indicating additional upside from recent trading levels and reinforcing its constructive view of Matador Resources. Truist lifts target for Matador Resources stock to USD 65.00
• Positive Sentiment: Morgan Stanley increased its target from $66 to $69 while maintaining an “equal weight” rating. The higher valuation target suggests improved expectations, despite the firm’s neutral stance. Morgan Stanley raises Matador Resources price target
• Positive Sentiment: Wells Fargo issued a “buy” rating on MTDR, adding another bullish analyst endorsement and potentially supporting investor sentiment. Wells Fargo issues a buy rating on Matador Resources
• Neutral Sentiment: Scotiabank initiated coverage with a “sector perform” rating and a $59 target. The target implies limited upside and indicates the bank expects Matador to perform broadly in line with its industry peers. Scotiabank initiates coverage on Matador Resources
• Negative Sentiment: A separate Wells Fargo report presented a pessimistic stock-price forecast, creating conflicting signals with the firm’s reported buy rating. This inconsistency could increase uncertainty around the near-term analyst outlook. Wells Fargo issues pessimistic forecast for Matador Resources

About Matador Resources

Matador Resources Company is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas properties. Its operations are focused primarily on unconventional, or shale, formations, with oil, natural gas and natural gas liquids among its principal products.

The company's main exploration and production activities are concentrated in the Delaware Basin, part of the Permian Basin in southeastern New Mexico and West Texas. Matador has also historically held interests in other U.S.

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