Magnolia Oil & Gas (NYSE:MGY) Issues Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• Magnolia Oil & Gas beat quarterly expectations: EPS was $0.99 versus the $0.93 consensus, while revenue reached $478.81 million, up 50.1% year over year and above estimates.
• The stock fell 3.4% to $23.73 despite the earnings beat. Analysts maintain a “Moderate Buy” consensus with an average price target of $31.50.
• The company increased its quarterly dividend to $0.18 per share from $0.17, implying an annualized payout of $0.72 and a 3.0% yield.

Magnolia Oil & Gas (NYSE:MGY - Get Free Report) released its earnings results on Wednesday. The company reported $0.99 EPS for the quarter, topping analysts' consensus estimates of $0.93 by $0.06, FiscalAI reports. The company had revenue of $478.81 million for the quarter, compared to analysts' expectations of $458.10 million. Magnolia Oil & Gas had a net margin of 24.40% and a return on equity of 16.28%. The firm's revenue was up 50.1% compared to the same quarter last year. During the same quarter last year, the business earned $0.41 EPS.

Magnolia Oil & Gas Stock Down 3.4%

NYSE:MGY traded down $0.84 during mid-day trading on Wednesday, reaching $23.73. The company's stock had a trading volume of 3,664,339 shares, compared to its average volume of 6,820,641. The company has a quick ratio of 1.10, a current ratio of 1.10 and a debt-to-equity ratio of 0.19. Magnolia Oil & Gas has a 1 year low of $21.07 and a 1 year high of $32.76. The stock has a fifty day moving average of $26.29 and a 200-day moving average of $27.60. The firm has a market capitalization of $4.39 billion, a PE ratio of 13.80 and a beta of 0.72.

Magnolia Oil & Gas Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Monday, August 10th will be issued a $0.18 dividend. The ex-dividend date is Monday, August 10th. This is an increase from Magnolia Oil & Gas's previous quarterly dividend of $0.17. This represents a $0.72 annualized dividend and a dividend yield of 3.0%. Magnolia Oil & Gas's dividend payout ratio is presently 38.37%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC increased its position in 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 buying an additional 864 shares in the last quarter. Parallel Advisors LLC grew its stake in shares of 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 acquiring an additional 785 shares during the last quarter. Geneos Wealth Management Inc. increased its stake in Magnolia Oil & Gas by 90.5% during the 2nd quarter. Geneos Wealth Management Inc. now owns 2,212 shares of the company's stock valued at $50,000 after purchasing an additional 1,051 shares in the last quarter. Aster Capital Management DIFC Ltd purchased a new position in shares of Magnolia Oil & Gas in the fourth quarter worth $92,000. Finally, Osaic Holdings Inc. raised its holdings in shares of Magnolia Oil & Gas by 160.0% in the second quarter. Osaic Holdings Inc. now owns 4,363 shares of the company's stock worth $100,000 after buying an additional 2,685 shares during the last quarter. 94.73% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

MGY has been the subject of a number of analyst reports. Weiss Ratings lowered Magnolia Oil & Gas from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, May 21st. Mizuho raised Magnolia Oil & Gas to a "strong-buy" rating in a research note on Friday, July 31st. Truist Financial upgraded Magnolia Oil & Gas from a "hold" rating to a "buy" rating and upped their price target for the stock from $32.00 to $33.00 in a research note on Tuesday, July 28th. Zacks Research downgraded shares of Magnolia Oil & Gas from a "strong-buy" rating to a "hold" rating in a report on Tuesday, May 19th. Finally, Susquehanna raised their target price on shares of Magnolia Oil & Gas from $35.00 to $36.00 and gave the company a "positive" rating in a research note on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $31.50.

About Magnolia Oil & Gas

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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