Granite Ridge Resources (NYSE:GRNT) Shares Gap Up - Time to Buy?

Key Points

• Granite Ridge Resources (NYSE:GRNT) gapped up before the market open, rising from a prior close of $4.46 to an opening price of $4.69, and was last trading around $4.68.
• Analyst opinions are mixed: recent actions included a downgrade from Weiss Ratings, an upgrade from Zacks, and a new outperform rating with a $9 price target from Northland Securities. Overall, MarketBeat shows the stock with a Hold consensus and an average target of $10.
• The company pays a high dividend yield of about 9.3%, but its latest earnings missed estimates, and insiders have been buying shares, including the CFO and CEO, which may signal confidence in the business.

Granite Ridge Resources, Inc. (NYSE:GRNT - Get Free Report)'s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $4.46, but opened at $4.69. Granite Ridge Resources shares last traded at $4.6830, with a volume of 138,407 shares changing hands.

Analyst Ratings Changes

A number of research analysts recently commented on the company. Weiss Ratings cut Granite Ridge Resources from a "hold (c)" rating to a "sell (d+)" rating in a research report on Friday, May 22nd. Zacks Research upgraded shares of Granite Ridge Resources from a "strong sell" rating to a "hold" rating in a research note on Tuesday, June 23rd. Stephens decreased their target price on shares of Granite Ridge Resources from $12.00 to $11.00 and set an "overweight" rating on the stock in a report on Friday, May 8th. Finally, Northland Securities initiated coverage on shares of Granite Ridge Resources in a report on Wednesday. They issued an "outperform" rating and a $9.00 target price on the stock. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $10.00.

Granite Ridge Resources Stock Up 5.9%

The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 0.73. The company has a market capitalization of $623.23 million, a P/E ratio of -18.86 and a beta of 0.21. The stock has a 50 day moving average price of $5.04 and a 200 day moving average price of $5.06.

Granite Ridge Resources (NYSE:GRNT - Get Free Report) last issued its quarterly earnings data 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). The firm had revenue of $128.26 million for the quarter, compared to the consensus estimate of $126.68 million. Granite Ridge Resources had a positive return on equity of 4.99% and a negative net margin of 7.13%. On average, research analysts anticipate that Granite Ridge Resources, Inc. will post 0.39 earnings per share for the current fiscal year.

Granite Ridge Resources Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Stockholders of record on Friday, May 29th were paid a $0.11 dividend. The ex-dividend date of this dividend was Friday, May 29th. This represents a $0.44 annualized dividend and a dividend yield of 9.3%. Granite Ridge Resources's dividend payout ratio is currently -176.00%.

Insider Buying and Selling at Granite Ridge Resources

In other Granite Ridge Resources news, CFO Ronald Kyle Kettler purchased 6,000 shares of the business's stock in a transaction dated Wednesday, May 27th. The shares were bought at an average price of $5.08 per share, for a total transaction of $30,480.00. Following the completion of the acquisition, the chief financial officer owned 129,276 shares in the company, valued at approximately $656,722.08. This trade represents a 4.87% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Tyler Farquharson purchased 10,000 shares of the business's stock in a transaction dated Wednesday, May 13th. The shares were acquired at an average price of $5.15 per share, for a total transaction of $51,500.00. Following the acquisition, the chief executive officer owned 344,743 shares of the company's stock, valued at $1,775,426.45. This trade represents a 2.99% increase in their position. The SEC filing for this purchase provides additional information. Insiders have acquired 148,780 shares of company stock worth $798,208 in the last 90 days. Corporate insiders own 8.60% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. American Century Companies Inc. increased its stake in shares of Granite Ridge Resources by 12.9% in the third quarter. American Century Companies Inc. now owns 2,661,098 shares of the company's stock valued at $14,397,000 after buying an additional 303,059 shares during the period. Unison Advisors LLC bought a new position in shares of Granite Ridge Resources during the fourth quarter worth about $644,000. Renaissance Technologies LLC lifted its stake in shares of Granite Ridge Resources by 184.7% in the first quarter. Renaissance Technologies LLC now owns 65,200 shares of the company's stock worth $383,000 after acquiring an additional 42,300 shares during the period. Dimensional Fund Advisors LP boosted its holdings in Granite Ridge Resources by 15.7% in the first quarter. Dimensional Fund Advisors LP now owns 3,306,999 shares of the company's stock valued at $19,414,000 after acquiring an additional 448,066 shares during the last quarter. Finally, First Trust Advisors LP boosted its holdings in Granite Ridge Resources by 47.1% in the first quarter. First Trust Advisors LP now owns 366,573 shares of the company's stock valued at $2,152,000 after acquiring an additional 117,451 shares during the last quarter. 31.56% of the stock is owned by institutional investors and hedge funds.

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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