Evolution Petroleum (NYSEAMERICAN:EPM) Shares Up 8.7% - Should You Buy?

Key Points

• Shares rose 8.7% to about $4.50 on Wednesday on heavy volume (~1.0M shares, a 201% increase vs. average), signaling short-term buying interest.
• Wall Street sentiment is a Moderate Buy with an average price target of $5.33; Loop Capital set $5.30 and Freedom Capital upgraded the stock to "strong-buy."
• The company pays a large dividend ($0.12 quarterly, a 10.7% yield) but the payout ratio is an unsustainably high 600.08%, and Evolution is a small-cap energy firm (~$157.5M market cap) with tight liquidity (current ratio 0.90), indicating elevated risk.

Shares of Evolution Petroleum Corporation, Inc. (NYSEAMERICAN:EPM - Get Free Report) shot up 8.7% on Wednesday . The company traded as high as $4.51 and last traded at $4.50. 1,001,393 shares were traded during mid-day trading, an increase of 201% from the average session volume of 333,137 shares. The stock had previously closed at $4.14.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on EPM. Loop Capital set a $5.30 price objective on Evolution Petroleum in a research report on Tuesday, December 23rd. Freedom Capital upgraded Evolution Petroleum to a "strong-buy" rating in a research report on Tuesday, December 23rd. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Evolution Petroleum currently has an average rating of "Moderate Buy" and an average price target of $5.33.

Evolution Petroleum Trading Up 8.7%

The company has a market cap of $157.50 million, a PE ratio of 56.25 and a beta of 0.27. The company has a current ratio of 0.90, a quick ratio of 0.90 and a debt-to-equity ratio of 0.81. The stock has a 50 day moving average price of $4.47 and a 200 day moving average price of $4.18.

Evolution Petroleum Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th were paid a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a dividend yield of 10.7%. The ex-dividend date was Monday, March 16th. Evolution Petroleum's dividend payout ratio (DPR) is presently 600.08%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. WealthTrust Axiom LLC lifted its stake in shares of Evolution Petroleum by 9.4% in the 4th quarter. WealthTrust Axiom LLC now owns 1,948,657 shares of the energy company's stock valued at $6,898,000 after purchasing an additional 166,624 shares during the period. Vanguard Group Inc. raised its stake in Evolution Petroleum by 0.3% during the third quarter. Vanguard Group Inc. now owns 1,600,822 shares of the energy company's stock valued at $7,716,000 after buying an additional 5,101 shares during the last quarter. Geode Capital Management LLC raised its stake in Evolution Petroleum by 4.0% during the fourth quarter. Geode Capital Management LLC now owns 756,703 shares of the energy company's stock valued at $2,679,000 after buying an additional 29,101 shares during the last quarter. Russell Investments Group Ltd. raised its stake in Evolution Petroleum by 6.2% during the third quarter. Russell Investments Group Ltd. now owns 669,156 shares of the energy company's stock valued at $3,225,000 after buying an additional 39,171 shares during the last quarter. Finally, CWA Asset Management Group LLC raised its stake in Evolution Petroleum by 16.3% during the fourth quarter. CWA Asset Management Group LLC now owns 547,157 shares of the energy company's stock valued at $1,937,000 after buying an additional 76,686 shares during the last quarter. Hedge funds and other institutional investors own 60.07% of the company's stock.

About Evolution Petroleum

Evolution Petroleum Corporation (NYSE American: EPM) is an independent oil and natural gas company focused on enhanced oil recovery (EOR) through the use of carbon dioxide. Headquartered in Houston, Texas, the company specializes in acquiring and developing mature hydrocarbon reservoirs that benefit from CO₂ injection to increase production efficiency. Evolution Petroleum's business model combines property acquisition, reservoir engineering, and CO₂ management to optimize recovery of oil and associated gas.

The company's primary asset is the Jackson Dome CO₂ field in southwestern Mississippi, where natural carbon dioxide is produced, separated and reinjected into adjacent oil-bearing formations.

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