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

Matador Resources Company (NYSE:MTDR - Get Free Report)'s share price gapped down before the market opened on Wednesday . The stock had previously closed at $50.92, but opened at $49.13. Matador Resources shares last traded at $48.98, with a volume of 194,179 shares.

Analyst Upgrades and Downgrades

MTDR has been the topic of a number of analyst reports. Wells Fargo & Company decreased their target price on shares of Matador Resources from $80.00 to $74.00 and set an "overweight" rating on the stock in a report on Monday, June 16th. Stephens dropped their target price on shares of Matador Resources from $90.00 to $86.00 and set an "overweight" rating for the company in a research report on Tuesday, April 15th. JPMorgan Chase & Co. decreased their target price on shares of Matador Resources from $65.00 to $61.00 and set an "overweight" rating for the company in a report on Thursday, April 10th. Mizuho reduced their price target on shares of Matador Resources from $74.00 to $73.00 and set an "outperform" rating for the company in a research note on Tuesday, May 13th. Finally, KeyCorp boosted their target price on shares of Matador Resources from $60.00 to $62.00 and gave the company an "overweight" rating in a research report on Thursday. Two equities research analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $69.25.

Matador Resources Stock Performance

The firm's 50-day moving average price is $48.26 and its two-hundred day moving average price is $49.58. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.76 and a current ratio of 0.85. The stock has a market cap of $6.31 billion, a price-to-earnings ratio of 7.39 and a beta of 1.46.

Matador Resources (NYSE:MTDR - Get Free Report) last announced its quarterly earnings results on Tuesday, July 22nd. The energy company reported $1.53 earnings per share for the quarter, beating the consensus estimate of $1.29 by $0.24. The firm had revenue of $895.31 million for the quarter, compared to analysts' expectations of $892.86 million. Matador Resources had a net margin of 22.57% and a return on equity of 16.53%. The company's revenue was up 8.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.05 EPS. On average, analysts expect that Matador Resources Company will post 8.53 EPS for the current fiscal year.

Matador Resources Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, September 5th. Shareholders of record on Friday, August 15th will be given a $0.3125 dividend. The ex-dividend date is Friday, August 15th. This represents a $1.25 dividend on an annualized basis and a yield of 2.48%. Matador Resources's payout ratio is currently 18.30%.

Matador Resources declared that its board has approved a share buyback plan on Wednesday, April 23rd that authorizes the company to repurchase $400.00 million in outstanding shares. This repurchase authorization authorizes the energy company to reacquire up to 7.8% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In related news, EVP Glenn W. Stetson bought 1,000 shares of the firm's stock in a transaction on Monday, April 28th. The shares were bought at an average price of $41.53 per share, with a total value of $41,530.00. Following the completion of the transaction, the executive vice president directly owned 93,180 shares of the company's stock, valued at $3,869,765.40. This represents a 1.08% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Van H. Singleton II bought 1,000 shares of the firm's stock in a transaction on Thursday, May 1st. The stock was bought at an average cost of $40.72 per share, for a total transaction of $40,720.00. Following the transaction, the insider directly owned 291,135 shares of the company's stock, valued at $11,855,017.20. The trade was a 0.34% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have acquired a total of 14,850 shares of company stock valued at $601,103 over the last three months. Company insiders own 5.80% of the company's stock.

Institutional Trading of Matador Resources

Institutional investors and hedge funds have recently bought and sold shares of the business. D.A. Davidson & CO. purchased a new stake in shares of Matador Resources during the first quarter worth approximately $263,000. GAMMA Investing LLC increased its stake in shares of Matador Resources by 42.8% during the first quarter. GAMMA Investing LLC now owns 2,698 shares of the energy company's stock worth $138,000 after buying an additional 809 shares during the period. Teacher Retirement System of Texas purchased a new stake in shares of Matador Resources during the first quarter worth approximately $885,000. Delphi Management Inc. MA increased its stake in shares of Matador Resources by 118.6% during the first quarter. Delphi Management Inc. MA now owns 23,302 shares of the energy company's stock worth $1,190,000 after buying an additional 12,642 shares during the period. Finally, OneDigital Investment Advisors LLC purchased a new stake in shares of Matador Resources during the first quarter worth approximately $200,000. 91.98% of the stock is currently owned by hedge funds and other institutional investors.

About Matador Resources

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.