Granite Ridge Resources (NYSE:GRNT) Trading Down 9.1% on Disappointing Earnings

Key Points

• Granite Ridge Resources' stock fell 9.1% after reporting Q results that missed expectations — EPS $0.02 vs. $0.09 consensus — although revenue beat slightly at $128.26 million; trading volume was about 243,844 shares, roughly 70% below average.
• The company declared a quarterly dividend of $0.11 (annualized $0.44), implying a 8.5% yield
• Company insiders (including the director and CFO) recently purchased shares and institutions like Dimensional Fund Advisors increased stakes, while analysts hold a consensus “Hold” rating with a $11 price target (one Buy, two Hold).

Granite Ridge Resources, Inc. (NYSE:GRNT - Get Free Report)'s stock price fell 9.1% on Friday following a dissappointing earnings announcement. The stock traded as low as $4.83 and last traded at $5.0930. 243,844 shares were traded during trading, a decline of 70% from the average session volume of 821,021 shares. The stock had previously closed at $5.60.

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 net margin of 5.41% and a return on equity of 8.91%. The business had revenue of $128.26 million during the quarter, compared to the consensus estimate of $126.68 million.

Granite Ridge Resources Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 12th. Investors of record on Friday, May 29th will be given a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a dividend yield of 8.5%. The ex-dividend date of this dividend is Friday, May 29th. Granite Ridge Resources's dividend payout ratio (DPR) is presently 244.44%.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on GRNT. Weiss Ratings reissued a "hold (c-)" rating on shares of Granite Ridge Resources in a research report on Friday, April 24th. Zacks Research raised shares of Granite Ridge Resources from a "strong sell" rating to a "hold" rating in a research report on Monday, March 9th. Finally, Stephens lowered their price objective on shares of Granite Ridge Resources from $12.00 to $11.00 and set an "overweight" rating on the stock in a research report on Friday. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $11.00.

Insiders Place Their Bets

In related news, Director Michele J. Everard acquired 5,000 shares of the stock in a transaction on Thursday, March 12th. The shares were acquired at an average price of $5.17 per share, with a total value of $25,850.00. Following the completion of the transaction, the director owned 71,143 shares in the company, valued at approximately $367,809.31. The trade was a 7.56% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Ronald Kyle Kettler acquired 5,000 shares of the stock in a transaction on Tuesday, March 10th. The stock was bought at an average cost of $5.18 per share, for a total transaction of $25,900.00. Following the transaction, the chief financial officer owned 120,276 shares of the company's stock, valued at approximately $623,029.68. This trade represents a 4.34% increase in their position. The SEC filing for this purchase provides additional information. In the last quarter, insiders have purchased 43,158 shares of company stock valued at $222,814. Company insiders own 8.40% of the company's stock.

Hedge Funds Weigh In On Granite Ridge Resources

Several large investors have recently modified their holdings of the business. Dimensional Fund Advisors LP increased its stake in shares of 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 worth $19,414,000 after purchasing an additional 448,066 shares in the last quarter. Bank of New York Mellon Corp increased its stake in shares of Granite Ridge Resources by 1.3% in the first quarter. Bank of New York Mellon Corp now owns 949,688 shares of the company's stock worth $5,575,000 after purchasing an additional 12,089 shares in the last quarter. Hsbc Holdings PLC purchased a new position in shares of Granite Ridge Resources in the first quarter worth about $391,000. Private Advisor Group LLC purchased a new position in shares of Granite Ridge Resources in the first quarter worth about $59,000. Finally, Independent Wealth Network Inc. increased its stake in shares of Granite Ridge Resources by 32.3% in the first quarter. Independent Wealth Network Inc. now owns 38,934 shares of the company's stock worth $229,000 after purchasing an additional 9,508 shares in the last quarter. Hedge funds and other institutional investors own 31.56% of the company's stock.

Granite Ridge Resources Price Performance

The stock has a market cap of $682.77 million, a PE ratio of 28.86, a P/E/G ratio of 0.51 and a beta of 0.26. The company has a debt-to-equity ratio of 0.61, a current ratio of 1.25 and a quick ratio of 1.25. The firm's 50 day moving average price is $5.48 and its two-hundred day moving average price is $5.15.

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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