Magnolia Oil & Gas Corp (NYSE:MGY) Announces Quarterly Dividend of $0.18

Key Points

• Magnolia Oil & Gas raised its quarterly dividend 9.1% to $0.18 per share, payable September 1 to shareholders of record on August 10, representing an annualized yield of about 2.9%.
• The dividend appears well covered, with a current payout ratio of 33.7%; analysts expect next year’s earnings to support a lower projected payout ratio of 26.6%.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $31.50, while the stock recently traded at $25.00 after rising 6.9%.

Magnolia Oil & Gas Corp (NYSE:MGY - Get Free Report) announced a quarterly dividend on Wednesday, July 29th. Shareholders of record on Monday, August 10th will be paid a dividend of 0.18 per share on Tuesday, September 1st. This represents a c) annualized dividend and a yield of 2.9%. The ex-dividend date is Monday, August 10th. This is a 9.1% increase from Magnolia Oil & Gas's previous quarterly dividend of $0.17.

Magnolia Oil & Gas has a payout ratio of 33.7% meaning its dividend is sufficiently covered by earnings. Research analysts expect Magnolia Oil & Gas to earn $2.48 per share next year, which means the company should continue to be able to cover its $0.66 annual dividend with an expected future payout ratio of 26.6%.

Magnolia Oil & Gas Trading Up 6.9%

Shares of MGY traded up $1.60 during mid-day trading on Wednesday, reaching $25.00. 6,675,767 shares of the company's stock traded hands, compared to its average volume of 3,376,270. The stock has a market cap of $4.62 billion, a P/E ratio of 14.54 and a beta of 0.70. The stock's 50-day moving average is $26.77 and its two-hundred day moving average is $27.49. Magnolia Oil & Gas has a 12 month low of $21.07 and a 12 month high of $32.76. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.10 and a quick ratio of 1.10.

Magnolia Oil & Gas (NYSE:MGY - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The company reported $0.54 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.51 by $0.03. Magnolia Oil & Gas had a return on equity of 16.28% and a net margin of 24.40%.The firm had revenue of $358.51 million during the quarter, compared to analyst estimates of $349.89 million. During the same period last year, the company earned $0.54 EPS. Magnolia Oil & Gas's quarterly revenue was up 2.3% compared to the same quarter last year. Research analysts forecast that Magnolia Oil & Gas will post 2.69 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. Citigroup lowered their target price on shares of Magnolia Oil & Gas from $35.00 to $32.00 and set a "neutral" rating for the company in a research note on Monday, April 13th. UBS Group dropped their target price on shares of Magnolia Oil & Gas from $38.00 to $34.00 and set a "buy" rating on the stock in a research note on Friday, July 10th. Truist Financial raised shares of Magnolia Oil & Gas from a "hold" rating to a "buy" rating and raised their target price for the stock from $32.00 to $33.00 in a research report on Tuesday. KeyCorp reaffirmed an "overweight" rating on shares of Magnolia Oil & Gas in a research note on Monday, June 29th. Finally, Mizuho dropped their price objective on Magnolia Oil & Gas from $35.00 to $33.00 and set an "outperform" rating on the stock in a research note on Wednesday, July 22nd. Nine analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $31.50.

Magnolia Oil & Gas Company Profile

Magnolia Oil & Gas Corp NYSE: MGY is an independent exploration and production company focused on the acquisition, development and optimization of onshore oil and gas assets in South Texas. Headquartered in Houston, the company concentrates its efforts on the Eagle Ford Shale, where it holds significant working interests in key producing counties.

The company's core operations center on horizontal drilling and multi-stage completions designed to extract light crude oil, natural gas and natural gas liquids (NGLs).

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