Matador Resources (NYSE:MTDR) Shares Gap Down - Should You Sell?

Key Points

• Matador Resources shares experienced a significant drop, opening at $40.35 after closing at $43.91, and last traded at $40.13.
• Analysts have adjusted their price targets for Matador, with ratings ranging from "Strong Buy" to "Neutral," and a consensus average price target of $65.79.
• The company recently announced an increase in its quarterly dividend to $0.375, reflecting a 3.7% dividend yield, set to be paid on December 5th.

Matador Resources Company (NYSE:MTDR - Get Free Report) shares gapped down before the market opened on Wednesday . The stock had previously closed at $43.91, but opened at $40.35. Matador Resources shares last traded at $40.13, with a volume of 1,335,576 shares changing hands.

Analysts Set New Price Targets

A number of analysts have commented on the company. UBS Group lowered their price target on Matador Resources from $49.00 to $48.00 and set a "neutral" rating for the company in a research report on Wednesday, August 20th. TD Cowen upgraded shares of Matador Resources to a "strong-buy" rating in a report on Monday, July 7th. Bank of America cut their price target on shares of Matador Resources from $56.00 to $55.00 and set a "buy" rating on the stock in a report on Thursday, October 16th. KeyCorp cut their price target on shares of Matador Resources from $62.00 to $61.00 and set an "overweight" rating on the stock in a report on Wednesday, September 3rd. Finally, Raymond James Financial reiterated an "outperform" rating and issued a $55.00 price target (down previously from $63.00) on shares of Matador Resources in a report on Monday. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $65.79.

Matador Resources Stock Down 8.8%

The stock has a market cap of $4.98 billion, a PE ratio of 5.86 and a beta of 1.41. The company has a current ratio of 0.85, a quick ratio of 0.81 and a debt-to-equity ratio of 0.57. The business has a 50-day moving average price of $46.67 and a 200-day moving average price of $46.17.

Matador Resources (NYSE:MTDR - Get Free Report) last announced its earnings results on Tuesday, October 21st. The energy company reported $1.36 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.22 by $0.14. The firm had revenue of $939.02 million for the quarter, compared to analyst estimates of $893.22 million. Matador Resources had a return on equity of 16.53% and a net margin of 22.57%.The business's revenue was up 4.4% on a year-over-year basis. During the same quarter last year, the firm posted $1.89 EPS. As a group, analysts forecast that Matador Resources Company will post 8.53 earnings per share for the current year.

Matador Resources Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, December 5th. Shareholders of record on Monday, November 10th will be paid a $0.375 dividend. This is a boost from Matador Resources's previous quarterly dividend of $0.31. The ex-dividend date of this dividend is Monday, November 10th. This represents a $1.50 dividend on an annualized basis and a dividend yield of 3.7%. Matador Resources's dividend payout ratio is 18.30%.

Insiders Place Their Bets

In related news, COO Christopher P. Calvert bought 1,000 shares of the business's stock in a transaction on Friday, September 12th. The stock was acquired at an average cost of $47.77 per share, with a total value of $47,770.00. Following the purchase, the chief operating officer directly owned 37,500 shares of the company's stock, valued at $1,791,375. The trade was a 2.74% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP William Thomas Elsener acquired 600 shares of the business's stock in a transaction that occurred on Thursday, September 11th. The shares were acquired at an average cost of $48.46 per share, with a total value of $29,076.00. Following the completion of the transaction, the executive vice president directly owned 112,069 shares in the company, valued at approximately $5,430,863.74. The trade was a 0.54% increase in their position. The disclosure for this purchase can be found here. Insiders purchased 11,380 shares of company stock valued at $549,188 in the last three months. 5.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Matador Resources

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. CWA Asset Management Group LLC boosted its stake in shares of Matador Resources by 4.4% in the 3rd quarter. CWA Asset Management Group LLC now owns 19,076 shares of the energy company's stock valued at $857,000 after buying an additional 797 shares during the period. Sivia Capital Partners LLC lifted its stake in Matador Resources by 5.4% during the third quarter. Sivia Capital Partners LLC now owns 5,625 shares of the energy company's stock worth $253,000 after purchasing an additional 290 shares during the last quarter. CWM LLC lifted its stake in Matador Resources by 56.4% during the third quarter. CWM LLC now owns 28,124 shares of the energy company's stock worth $1,264,000 after purchasing an additional 10,143 shares during the last quarter. Exchange Traded Concepts LLC lifted its stake in Matador Resources by 105.3% during the third quarter. Exchange Traded Concepts LLC now owns 15,489 shares of the energy company's stock worth $696,000 after purchasing an additional 7,944 shares during the last quarter. Finally, GAMMA Investing LLC lifted its stake in Matador Resources by 19.3% during the third quarter. GAMMA Investing LLC now owns 3,119 shares of the energy company's stock worth $140,000 after purchasing an additional 505 shares during the last quarter. 91.98% of the stock is currently owned by hedge funds and other institutional investors.

Matador Resources Company Profile

Matador Resources Company, an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. It operates through two segments, Exploration and Production; and Midstream. The company primarily holds interests in the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas.

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