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

Key Points

• Shares gapped down premarket from $58.90 to $55.27 and were last trading around $53.13, a decline of roughly 6.8% on the session.
• Wall Street has a consensus rating of “Moderate Buy” with an average target of $62.62, and several analysts have recently raised price targets into the mid-$60s.
• Matador beat the quarter with EPS of $0.87 vs. $0.71 expected and revenue of $847.99M vs. $811.13M, though revenue was down 15.7% year-over-year; the company pays a $0.375 quarterly dividend (2.7% yield) and trades at a P/E of about 9.0.

Matador Resources Company (NYSE:MTDR - Get Free Report)'s share price gapped down prior to trading on Friday . The stock had previously closed at $58.90, but opened at $55.27. Matador Resources shares last traded at $53.1340, with a volume of 359,975 shares changing hands.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the stock. Roth Mkm restated a "neutral" rating and issued a $65.00 target price (up from $52.00) on shares of Matador Resources in a report on Wednesday, April 8th. Weiss Ratings reissued a "hold (c-)" rating on shares of Matador Resources in a research report on Friday, January 9th. TD Cowen increased their price objective on shares of Matador Resources from $60.00 to $65.00 and gave the stock a "buy" rating in a research report on Tuesday, March 17th. Truist Financial assumed coverage on shares of Matador Resources in a research report on Tuesday, March 24th. They issued a "hold" rating and a $60.00 price objective for the company. Finally, Royal Bank Of Canada dropped their price objective on shares of Matador Resources from $62.00 to $60.00 and set an "outperform" rating for the company in a research report on Tuesday, January 13th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, Matador Resources currently has a consensus rating of "Moderate Buy" and an average target price of $62.62.

Matador Resources Stock Down 6.8%

The firm's 50-day moving average price is $55.87 and its 200-day moving average price is $47.07. The company has a market cap of $6.82 billion, a price-to-earnings ratio of 9.01 and a beta of 0.91. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.79 and a quick ratio of 0.75.

Matador Resources (NYSE:MTDR - Get Free Report) last released its quarterly earnings data on Tuesday, February 24th. The energy company reported $0.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.71 by $0.16. Matador Resources had a net margin of 20.54% and a return on equity of 12.36%. The company had revenue of $847.99 million during the quarter, compared to analyst estimates of $811.13 million. During the same quarter in the prior year, the business earned $1.83 earnings per share. The business's quarterly revenue was down 15.7% compared to the same quarter last year. Sell-side analysts forecast that Matador Resources Company will post 8.53 earnings per share for the current fiscal year.

Matador Resources Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 10th. Stockholders of record on Friday, February 27th were paid a $0.375 dividend. The ex-dividend date was Friday, February 27th. This represents a $1.50 annualized dividend and a dividend yield of 2.7%. Matador Resources's dividend payout ratio is 24.59%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Harbor Capital Advisors Inc. boosted its stake in shares of Matador Resources by 184.9% in the fourth quarter. Harbor Capital Advisors Inc. now owns 30,836 shares of the energy company's stock valued at $1,309,000 after purchasing an additional 20,011 shares during the period. Vaughan Nelson Investment Management L.P. boosted its stake in Matador Resources by 64.3% during the 3rd quarter. Vaughan Nelson Investment Management L.P. now owns 1,100,805 shares of the energy company's stock valued at $49,459,000 after acquiring an additional 431,010 shares during the last quarter. Thrivent Financial for Lutherans boosted its stake in Matador Resources by 3.8% during the 3rd quarter. Thrivent Financial for Lutherans now owns 1,032,602 shares of the energy company's stock valued at $46,395,000 after acquiring an additional 37,889 shares during the last quarter. Neo Ivy Capital Management bought a new position in Matador Resources during the 3rd quarter valued at $871,000. Finally, Aquatic Capital Management LLC boosted its stake in Matador Resources by 264.8% during the 3rd quarter. Aquatic Capital Management LLC now owns 111,727 shares of the energy company's stock valued at $5,020,000 after acquiring an additional 81,102 shares during the last quarter. 91.98% of the stock is currently owned by hedge funds and other institutional investors.

About Matador Resources

Matador Resources Company is an independent energy firm primarily engaged in the exploration, development and production of oil, natural gas liquids (NGLs) and natural gas. The company focuses on upstream operations, utilizing horizontal drilling and hydraulic fracturing techniques to unlock hydrocarbons from key reservoirs. Its asset base includes both operated and non‐operated positions, with a particular emphasis on the Permian Basin, one of the most prolific oil-producing regions in North America.

Matador's core operations are concentrated in the Delaware Basin segment of the Permian Basin, where it holds substantial acreage in both Reeves and Culberson counties in West Texas and Eddy and Lea counties in New Mexico.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.