Magnolia Oil & Gas (NYSE:MGY) Issues Earnings Results

Key Points

• Magnolia reported Q1 EPS of $0.54, beating estimates of $0.51, and reported a net margin of 24.79% and ROE of 16.67%, but shares fell about 6.8% to $28.77 on the news.
• The company declared a quarterly dividend of $0.165 (annualized $0.66) for a 2.3% yield, with an ex-dividend date of May 12 and payment due June 1; the payout ratio is 38.37%.
• Insiders have been selling sizable positions—CEO and EVP sales included—with 338,954 shares (~$9.91M) sold over the past 90 days, reducing their holdings noticeably.

Magnolia Oil & Gas (NYSE:MGY - Get Free Report) posted its earnings results on Wednesday. The company reported $0.54 earnings per share for the quarter, topping analysts' consensus estimates of $0.51 by $0.03, Zacks reports. Magnolia Oil & Gas had a net margin of 24.79% and a return on equity of 16.67%.

Magnolia Oil & Gas Trading Down 6.8%

Shares of NYSE:MGY traded down $2.09 during trading on Wednesday, reaching $28.77. The stock had a trading volume of 3,457,246 shares, compared to its average volume of 2,873,918. The firm's fifty day moving average is $29.61 and its 200 day moving average is $25.54. The company has a debt-to-equity ratio of 0.20, a quick ratio of 1.54 and a current ratio of 1.54. Magnolia Oil & Gas has a 52 week low of $20.45 and a 52 week high of $32.76. The stock has a market cap of $5.36 billion, a price-to-earnings ratio of 16.73, a P/E/G ratio of 1.94 and a beta of 0.75.

Magnolia Oil & Gas Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Stockholders of record on Tuesday, May 12th will be paid a $0.165 dividend. This represents a $0.66 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Tuesday, May 12th. Magnolia Oil & Gas's dividend payout ratio is currently 38.37%.

Insider Activity at Magnolia Oil & Gas

In related news, CEO Christopher G. Stavros sold 119,954 shares of the business's stock in a transaction on Monday, March 9th. The shares were sold at an average price of $29.29, for a total transaction of $3,513,452.66. Following the transaction, the chief executive officer owned 883,592 shares in the company, valued at $25,880,409.68. The trade was a 11.95% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Timothy D. Yang sold 150,000 shares of the business's stock in a transaction on Monday, March 9th. The shares were sold at an average price of $29.29, for a total transaction of $4,393,500.00. Following the transaction, the executive vice president owned 526,661 shares in the company, valued at $15,425,900.69. The trade was a 22.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 338,954 shares of company stock worth $9,911,733 over the last ninety days. 0.92% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. EverSource Wealth Advisors LLC lifted its position in shares of Magnolia Oil & Gas by 165.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,386 shares of the company's stock valued at $31,000 after acquiring an additional 864 shares during the period. Parallel Advisors LLC raised its holdings in Magnolia Oil & Gas by 79.8% during the fourth quarter. Parallel Advisors LLC now owns 1,769 shares of the company's stock worth $39,000 after buying an additional 785 shares during the last quarter. Geneos Wealth Management Inc. raised its holdings in Magnolia Oil & Gas by 90.5% during the second quarter. Geneos Wealth Management Inc. now owns 2,212 shares of the company's stock worth $50,000 after buying an additional 1,051 shares during the last quarter. Aster Capital Management DIFC Ltd acquired a new position in Magnolia Oil & Gas during the fourth quarter worth $92,000. Finally, Kestra Advisory Services LLC acquired a new position in Magnolia Oil & Gas during the fourth quarter worth $99,000. Institutional investors and hedge funds own 94.73% of the company's stock.

Analyst Ratings Changes

MGY has been the topic of several recent research reports. Siebert Williams Shank downgraded Magnolia Oil & Gas from a "buy" rating to a "hold" rating in a report on Friday, March 6th. Citigroup decreased their price target on 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. Susquehanna reduced their price objective on shares of Magnolia Oil & Gas from $30.00 to $28.00 and set a "positive" rating on the stock in a research note on Monday, January 26th. The Goldman Sachs Group upped their price objective on shares of Magnolia Oil & Gas from $23.00 to $26.00 and gave the company a "neutral" rating in a research note on Wednesday, February 11th. Finally, KeyCorp upped their price objective on shares of Magnolia Oil & Gas from $30.00 to $38.00 and gave the company an "overweight" rating in a research note on Thursday, April 2nd. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $31.08.

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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