Mach Natural Resources LP (NYSE:MNR) Given Consensus Recommendation of "Buy" by Brokerages

Key Points

• Analysts have a consensus "Buy" on Mach Natural Resources from eight covering firms, with an average 1‑year price target of $18.50.
• Mach beat Q1 expectations (EPS $0.43 vs. $0.26; revenue $387.5M vs. $357.3M) and raised its quarterly dividend to $0.53 (annualized $2.12), implying a 15.4% yield despite a payout ratio of 189%.
• Significant insider activity: General Partner S.A R.L. Ikav sold 5,557,679 shares for about $71.2M, cutting its stake by 56.6%, while insiders as a group still control roughly 87.8% of the stock.

Mach Natural Resources LP (NYSE:MNR - Get Free Report) has been assigned a consensus recommendation of "Buy" from the eight analysts that are covering the firm, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a hold rating, two have assigned a buy rating and three have assigned a strong buy rating to the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $18.50.

Several research analysts have recently weighed in on the stock. Stifel Nicolaus reduced their price target on shares of Mach Natural Resources from $22.00 to $18.00 and set a "buy" rating for the company in a report on Tuesday, January 6th. Weiss Ratings upgraded shares of Mach Natural Resources from a "hold (c-)" rating to a "hold (c)" rating in a report on Monday, April 27th. KeyCorp reiterated a "sector weight" rating on shares of Mach Natural Resources in a report on Friday, January 16th. Zacks Research upgraded shares of Mach Natural Resources from a "hold" rating to a "strong-buy" rating in a report on Monday, April 20th. Finally, Wall Street Zen cut shares of Mach Natural Resources from a "strong-buy" rating to a "buy" rating in a report on Saturday.

Mach Natural Resources Stock Up 0.1%

Shares of NYSE MNR opened at $13.80 on Monday. The stock has a market cap of $2.32 billion, a P/E ratio of 12.32 and a beta of -0.33. The firm has a 50 day moving average price of $13.38 and a 200 day moving average price of $12.35. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.93 and a current ratio of 1.05. Mach Natural Resources has a 52-week low of $10.46 and a 52-week high of $15.60.

Mach Natural Resources (NYSE:MNR - Get Free Report) last issued its quarterly earnings data on Thursday, March 12th. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.26 by $0.17. The firm had revenue of $387.54 million during the quarter, compared to analysts' expectations of $357.31 million. Mach Natural Resources had a net margin of 12.16% and a return on equity of 16.91%. Analysts expect that Mach Natural Resources will post 1.75 EPS for the current year.

Mach Natural Resources Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, March 12th. Stockholders of record on Thursday, February 26th were issued a $0.53 dividend. This represents a $2.12 annualized dividend and a dividend yield of 15.4%. This is a boost from Mach Natural Resources's previous quarterly dividend of $0.27. The ex-dividend date was Thursday, February 26th. Mach Natural Resources's dividend payout ratio is currently 189.29%.

Insider Activity

In other news, major shareholder General Partner S.A R.L. Ikav sold 5,557,679 shares of the company's stock in a transaction that occurred on Wednesday, April 8th. The shares were sold at an average price of $12.81, for a total value of $71,193,867.99. Following the completion of the transaction, the insider owned 4,259,110 shares in the company, valued at $54,559,199.10. This represents a 56.61% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Tom L. Ward purchased 153,256 shares of Mach Natural Resources stock in a transaction dated Monday, April 13th. The stock was bought at an average price of $13.05 per share, with a total value of $1,999,990.80. Following the acquisition, the insider directly owned 13,295,039 shares of the company's stock, valued at approximately $173,500,258.95. This trade represents a 1.17% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders purchased 163,541 shares of company stock worth $2,142,861 over the last quarter. 87.80% of the stock is currently owned by company insiders.

Institutional Trading of Mach Natural Resources

A number of institutional investors have recently made changes to their positions in MNR. Goldman Sachs Group Inc. lifted its position in shares of Mach Natural Resources by 120.5% in the first quarter. Goldman Sachs Group Inc. now owns 3,814,782 shares of the company's stock worth $59,320,000 after purchasing an additional 2,084,511 shares in the last quarter. First Trust Advisors LP bought a new stake in shares of Mach Natural Resources in the second quarter worth $7,630,000. Jane Street Group LLC bought a new stake in shares of Mach Natural Resources in the second quarter worth $1,931,000. Cooksen Wealth LLC lifted its position in shares of Mach Natural Resources by 87.5% in the second quarter. Cooksen Wealth LLC now owns 2,635 shares of the company's stock worth $38,000 after purchasing an additional 1,230 shares in the last quarter. Finally, Osaic Holdings Inc. lifted its position in shares of Mach Natural Resources by 208.5% in the second quarter. Osaic Holdings Inc. now owns 8,302 shares of the company's stock worth $120,000 after purchasing an additional 5,611 shares in the last quarter. Institutional investors own 78.36% of the company's stock.

About Mach Natural Resources

Mach Natural Resources LP, an independent upstream oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of Western Oklahoma, Southern Kansas, and the panhandle of Texas. It also owns a portfolio of midstream assets, as well as owns plants and water infrastructure. The company was incorporated in 2023 and is headquartered in Oklahoma City, Oklahoma.

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