Magnolia Oil & Gas (NYSE:MGY) Trading Down 5.6% - Should You Sell?

Key Points

• Magnolia Oil & Gas shares fell 5.6% in midday trading, hitting an intraday low of $25.74 on volume well above average. The stock had closed at $27.26 the prior session.
• Analysts remain mixed on the name after several recent rating changes and target adjustments. The consensus view is currently Hold, with an average price target of $31.08.
• The company recently beat quarterly earnings and revenue expectations, while also paying a quarterly dividend of $0.165 per share. Its annualized dividend yield is about 2.6%.

Magnolia Oil & Gas Corp (NYSE:MGY - Get Free Report) shares fell 5.6% during mid-day trading on Monday . The company traded as low as $25.74 and last traded at $25.74. 4,403,182 shares traded hands during trading, an increase of 57% from the average session volume of 2,801,536 shares. The stock had previously closed at $27.26.

Analysts Set New Price Targets

A number of brokerages recently weighed in on MGY. Zacks Research lowered shares of Magnolia Oil & Gas from a "strong-buy" rating to a "hold" rating in a report on Tuesday, May 19th. Truist Financial decreased their price target on shares of Magnolia Oil & Gas from $34.00 to $32.00 and set a "hold" rating for the company in a research note on Tuesday, July 7th. Weiss Ratings cut Magnolia Oil & Gas from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, May 21st. Mizuho increased their price target on Magnolia Oil & Gas from $33.00 to $35.00 and gave the stock an "outperform" rating in a research report on Wednesday, May 27th. Finally, Roth Capital upgraded Magnolia Oil & Gas from a "neutral" rating to a "buy" rating and set a $31.00 price objective for the company in a report on Monday, June 22nd. Eight equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $31.08.

Magnolia Oil & Gas Stock Down 5.3%

The company has a market capitalization of $4.77 billion, a price-to-earnings ratio of 15.00 and a beta of 0.70. The business's 50-day moving average is $27.36 and its 200-day moving average is $27.34. 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 (NYSE:MGY - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The company reported $0.54 earnings per share for the quarter, beating the consensus estimate 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 company had revenue of $358.51 million during the quarter, compared to analysts' expectations of $349.89 million. During the same period last year, the business earned $0.54 earnings per share. Magnolia Oil & Gas's quarterly revenue was up 2.3% on a year-over-year basis. As a group, equities analysts predict that Magnolia Oil & Gas Corp will post 2.67 earnings per share for the current year.

Magnolia Oil & Gas Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 1st. Shareholders of record on Tuesday, May 12th were given a dividend of $0.165 per share. The ex-dividend date was Tuesday, May 12th. This represents a $0.66 dividend on an annualized basis and a yield of 2.6%. Magnolia Oil & Gas's dividend payout ratio is currently 38.37%.

Hedge Funds Weigh In On Magnolia Oil & Gas

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Salomon & Ludwin LLC grew its position in shares of Magnolia Oil & Gas by 130.1% in the fourth quarter. Salomon & Ludwin LLC now owns 1,344 shares of the company's stock valued at $29,000 after purchasing an additional 760 shares in the last quarter. Valued Wealth Advisors LLC purchased a new position in Magnolia Oil & Gas during the first quarter worth about $29,000. EverSource Wealth Advisors LLC boosted its holdings in Magnolia Oil & Gas by 165.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,386 shares of the company's stock valued at $31,000 after purchasing an additional 864 shares during the last quarter. Torren Management LLC purchased a new stake in shares of Magnolia Oil & Gas in the 4th quarter valued at approximately $38,000. Finally, Harbor Investment Advisory LLC purchased a new stake in shares of Magnolia Oil & Gas in the 2nd quarter valued at approximately $39,000. Hedge funds and other institutional investors own 94.73% of the company's stock.

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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