Montauk Renewables (NASDAQ:MNTK) Downgraded by Wall Street Zen to "Sell"

Key Points

• Montauk Renewables has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, reflecting analysts' concerns about the company's performance.
• Scotiabank has also reduced its price target for Montauk Renewables from $6.00 to $4.00, indicating a cautious outlook on the stock.
• The company recently initiated a $5 million share repurchase program, suggesting management's belief that the stock is undervalued.

Wall Street Zen lowered shares of Montauk Renewables (NASDAQ:MNTK - Free Report) from a hold rating to a sell rating in a report issued on Saturday.

Separately, Scotiabank cut their price objective on Montauk Renewables from $6.00 to $4.00 and set a "sector perform" rating for the company in a research report on Friday, April 11th.

Montauk Renewables Stock Performance

NASDAQ:MNTK traded up $0.06 during trading hours on Friday, reaching $2.03. The company had a trading volume of 136,921 shares, compared to its average volume of 204,506. Montauk Renewables has a 1-year low of $1.68 and a 1-year high of $6.04. The firm has a market cap of $288.08 million, a PE ratio of 100.50 and a beta of 0.07. The business's 50 day moving average price is $2.21 and its 200-day moving average price is $2.56. The company has a debt-to-equity ratio of 0.23, a current ratio of 0.77 and a quick ratio of 0.77.

Montauk Renewables (NASDAQ:MNTK - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported ($0.04) EPS for the quarter, missing analysts' consensus estimates of $0.01 by ($0.05). The business had revenue of $45.13 million during the quarter, compared to analysts' expectations of $42.73 million. Montauk Renewables had a net margin of 1.46% and a return on equity of 1.01%. Research analysts forecast that Montauk Renewables will post 0.19 EPS for the current year.

Montauk Renewables announced that its board has approved a share buyback plan on Tuesday, April 15th that allows the company to repurchase $5.00 million in shares. This repurchase authorization allows the company to repurchase up to 1.8% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board of directors believes its shares are undervalued.

Institutional Trading of Montauk Renewables

Several large investors have recently made changes to their positions in the company. Rhumbline Advisers increased its position in shares of Montauk Renewables by 12.6% during the second quarter. Rhumbline Advisers now owns 105,881 shares of the company's stock worth $235,000 after purchasing an additional 11,820 shares in the last quarter. JPMorgan Chase & Co. grew its holdings in shares of Montauk Renewables by 25.0% during the 2nd quarter. JPMorgan Chase & Co. now owns 64,772 shares of the company's stock worth $144,000 after purchasing an additional 12,974 shares during the period. Rathbones Group PLC grew its holdings in shares of Montauk Renewables by 27.1% during the 2nd quarter. Rathbones Group PLC now owns 92,000 shares of the company's stock worth $204,000 after purchasing an additional 19,600 shares during the period. Los Angeles Capital Management LLC acquired a new position in Montauk Renewables during the 2nd quarter worth about $65,000. Finally, Nisa Investment Advisors LLC lifted its stake in Montauk Renewables by 799.7% during the 2nd quarter. Nisa Investment Advisors LLC now owns 11,696 shares of the company's stock worth $26,000 after acquiring an additional 10,396 shares in the last quarter. 16.35% of the stock is currently owned by hedge funds and other institutional investors.

About Montauk Renewables

Montauk Renewables, Inc, a renewable energy company, engages in recovery and processing of biogas from landfills and other non-fossil fuel sources. It operates in two segments, Renewable Natural Gas and Renewable Electricity Generation. The company develops, owns, and operates renewable natural gas (RNG) projects that captures methane and prevents it from being released into the atmosphere by converting it into either RNG or electrical power for the electrical grid.