Granite Ridge Resources (NYSE:GRNT) Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Granite Ridge Resources from “hold” to “strong sell,” adding to a mixed analyst backdrop that now includes both buy and sell ratings and an average consensus of “hold.”
• The stock has been under pressure, opening at $4.92 with a market cap of about $649.5 million; it remains below its 200-day average and sits closer to its 12-month low than its high.
• Granite Ridge recently missed earnings expectations, reporting EPS of $0.02 versus the $0.09 estimate, though revenue came in slightly above forecasts at $128.26 million. Insiders have also been buying shares, with directors making notable purchases in recent months.

Granite Ridge Resources (NYSE:GRNT - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Wednesday,Zacks.com reports.

GRNT has been the subject of a number of other research reports. Weiss Ratings downgraded shares of Granite Ridge Resources from a "hold (c)" rating to a "sell (d+)" rating in a research report on Friday, May 22nd. Northland Securities started coverage on shares of Granite Ridge Resources in a report on Wednesday, July 8th. They issued an "outperform" rating and a $9.00 target price on the stock. Finally, Stephens decreased their target price on Granite Ridge Resources from $12.00 to $11.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. Two research analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $10.00.

Granite Ridge Resources Stock Performance

Granite Ridge Resources stock opened at $4.92 on Wednesday. The company has a market cap of $649.48 million, a PE ratio of -19.70 and a beta of 0.21. The company has a fifty day moving average price of $4.82 and a two-hundred day moving average price of $5.06. The company has a debt-to-equity ratio of 0.73, a current ratio of 0.93 and a quick ratio of 0.93. Granite Ridge Resources has a 12 month low of $4.18 and a 12 month high of $6.14.

Granite Ridge Resources (NYSE:GRNT - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $0.02 earnings per share for the quarter, missing analysts' consensus estimates of $0.09 by ($0.07). Granite Ridge Resources had a positive return on equity of 4.99% and a negative net margin of 7.13%.The business had revenue of $128.26 million for the quarter, compared to analyst estimates of $126.68 million. Research analysts expect that Granite Ridge Resources will post 0.38 earnings per share for the current year.

Insider Activity

In other Granite Ridge Resources news, Director Matthew Reade Miller acquired 18,180 shares of Granite Ridge Resources stock in a transaction dated Wednesday, May 13th. The stock was acquired at an average cost of $5.21 per share, for a total transaction of $94,717.80. Following the completion of the transaction, the director owned 1,350,213 shares in the company, valued at approximately $7,034,609.73. This represents a 1.36% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Griffin Perry acquired 100,000 shares of Granite Ridge Resources stock in a transaction dated Monday, May 18th. The shares were acquired at an average price of $5.49 per share, with a total value of $549,000.00. Following the completion of the transaction, the director owned 1,163,903 shares of the company's stock, valued at approximately $6,389,827.47. This trade represents a 9.40% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought a total of 148,780 shares of company stock worth $798,208 in the last quarter. Company insiders own 8.60% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in GRNT. Osaic Holdings Inc. increased its holdings in shares of Granite Ridge Resources by 264.2% during the second quarter. Osaic Holdings Inc. now owns 5,506 shares of the company's stock valued at $35,000 after purchasing an additional 3,994 shares during the period. EverSource Wealth Advisors LLC lifted its holdings in Granite Ridge Resources by 2,398.3% in the second quarter. EverSource Wealth Advisors LLC now owns 5,721 shares of the company's stock worth $36,000 after purchasing an additional 5,492 shares during the period. First Horizon Corp acquired a new stake in Granite Ridge Resources in the fourth quarter worth about $35,000. Tower Research Capital LLC TRC grew its position in Granite Ridge Resources by 103.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 9,133 shares of the company's stock valued at $58,000 after buying an additional 4,635 shares in the last quarter. Finally, Private Advisor Group LLC bought a new position in Granite Ridge Resources in the 1st quarter valued at about $59,000. Institutional investors and hedge funds own 31.56% of the company's stock.

About Granite Ridge Resources

Granite Ridge Resources, Inc operates as a non-operated oil and gas exploration and production company. It owns a portfolio of wells and acreage across the Permian and other unconventional basins in the United States. Granite Ridge Resources, Inc is based in Dallas, Texas.

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