Mach Natural Resources LP (NYSE:MNR) Sees Large Drop in Short Interest

Key Points

• Short interest in Mach Natural Resources fell sharply in May, dropping 55.9% to 880,761 shares from 1.998 million at the end of April. The stock’s short interest now equals about 4.3% of shares outstanding, with a 1.7-day days-to-cover ratio.
• Analyst sentiment has softened, with several firms downgrading the stock to Hold recently, including Zacks Research and Wall Street Zen. Even so, MarketBeat data shows a consensus rating of Moderate Buy with an average price target of $18.50.
• The company increased its quarterly dividend to $0.64 per share from $0.53, implying a 19.3% annualized yield. Mach also beat first-quarter EPS estimates, reporting $0.74 per share versus the expected $0.51.

Mach Natural Resources LP (NYSE:MNR - Get Free Report) was the target of a significant decline in short interest during the month of May. As of May 15th, there was short interest totaling 880,761 shares, a decline of 55.9% from the April 30th total of 1,997,614 shares. Based on an average daily volume of 517,240 shares, the days-to-cover ratio is currently 1.7 days. Currently, 4.3% of the shares of the stock are sold short.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the company. Zacks Research lowered Mach Natural Resources from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 25th. Wall Street Zen cut Mach Natural Resources from a "buy" rating to a "hold" rating in a report on Sunday, May 10th. Weiss Ratings downgraded Mach Natural Resources from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, May 18th. Finally, Truist Financial began coverage on Mach Natural Resources in a research note on Tuesday, March 24th. They issued a "hold" rating and a $14.00 target price for the company. Two equities research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, Mach Natural Resources currently has a consensus rating of "Moderate Buy" and a consensus target price of $18.50.

Insider Buying and Selling at Mach Natural Resources

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

Institutional Trading of Mach Natural Resources

A number of institutional investors have recently made changes to their positions in the stock. Cooksen Wealth LLC increased its stake 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 buying an additional 1,230 shares during the period. Hilton Head Capital Partners LLC purchased a new stake in Mach Natural Resources during the 4th quarter valued at $31,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in Mach Natural Resources in the 4th quarter worth $42,000. Kestra Advisory Services LLC bought a new stake in Mach Natural Resources in the 4th quarter worth $44,000. Finally, CENTRAL TRUST Co increased its position in shares of Mach Natural Resources by 384.7% in the first quarter. CENTRAL TRUST Co now owns 4,992 shares of the company's stock valued at $70,000 after acquiring an additional 3,962 shares during the period. Hedge funds and other institutional investors own 78.36% of the company's stock.

Mach Natural Resources Trading Down 1.3%

NYSE MNR traded down $0.17 during trading on Friday, hitting $13.29. 198,208 shares of the company's stock traded hands, compared to its average volume of 505,833. The stock has a fifty day moving average of $13.63 and a two-hundred day moving average of $12.61. The company has a debt-to-equity ratio of 0.61, a current ratio of 0.83 and a quick ratio of 0.73. Mach Natural Resources has a 12-month low of $10.46 and a 12-month high of $15.60. The firm has a market cap of $2.24 billion, a P/E ratio of 17.25 and a beta of -0.33.

Mach Natural Resources (NYSE:MNR - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.74 EPS for the quarter, topping the consensus estimate of $0.51 by $0.23. The firm had revenue of $286.00 million for the quarter, compared to the consensus estimate of $397.61 million. Mach Natural Resources had a return on equity of 18.46% and a net margin of 7.46%. As a group, sell-side analysts expect that Mach Natural Resources will post 1.54 EPS for the current year.

Mach Natural Resources Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 4th. Shareholders of record on Thursday, May 21st will be paid a $0.64 dividend. This is an increase from Mach Natural Resources's previous quarterly dividend of $0.53. The ex-dividend date of this dividend is Thursday, May 21st. This represents a $2.56 dividend on an annualized basis and a yield of 19.3%. Mach Natural Resources's payout ratio is presently 332.47%.

Mach Natural Resources Company Profile

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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