Granite Ridge Resources (NYSE:GRNT) Shares Up 5.3% - Still a Buy?

Key Points

• Granite Ridge Resources shares rose 5.3% to approximately $5.07, while trading volume remained below average.
• Analyst sentiment is mixed but leans positive, with a consensus rating of “Moderate Buy” and an average price target of $10.00, nearly twice the current share price.
• The company exceeded quarterly earnings and revenue estimates and offers an 8.7% dividend yield; however, its negative net margin and payout ratio above 200% indicate potential dividend sustainability concerns.

Granite Ridge Resources, Inc. (NYSE:GRNT - Get Free Report) shares were up 5.3% during mid-day trading on Tuesday. The stock traded as high as $5.07 and last traded at $5.0650. Approximately 653,565 shares changed hands during trading, a decline of 33% from the average daily volume of 980,688 shares. The stock had previously closed at $4.81.

Analyst Ratings Changes

A number of equities analysts have commented on the company. Freedom Capital raised Granite Ridge Resources from a "hold" rating to a "strong-buy" rating in a research note on Sunday, August 16th. Weiss Ratings reissued a "sell (d+)" rating on shares of Granite Ridge Resources in a research note on Wednesday, August 19th. Wall Street Zen upgraded shares of Granite Ridge Resources from a "sell" rating to a "buy" rating in a report on Sunday, August 9th. Northland Securities started coverage on shares of Granite Ridge Resources in a report on Wednesday, July 8th. They issued an "outperform" rating and a $9.00 target price on the stock. Finally, Zacks Research raised shares of Granite Ridge Resources from a "strong sell" rating to a "hold" rating in a research note on Thursday, August 20th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $10.00.

Granite Ridge Resources Trading Up 5.3%

The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.76. The stock's fifty day moving average price is $4.88 and its two-hundred day moving average price is $5.02. The company has a market capitalization of $668.07 million, a PE ratio of -24.12 and a beta of 0.24.

Granite Ridge Resources (NYSE:GRNT - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $0.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.08 by $0.01. The company had revenue of $149.27 million for the quarter, compared to analysts' expectations of $139.44 million. Granite Ridge Resources had a positive return on equity of 4.67% and a negative net margin of 5.56%. Sell-side analysts anticipate that Granite Ridge Resources, Inc. will post 0.43 earnings per share for the current year.

Granite Ridge Resources Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, September 14th. Stockholders of record on Friday, August 28th were paid a dividend of $0.11 per share. The ex-dividend date of this dividend was Friday, August 28th. This represents a $0.44 annualized dividend and a dividend yield of 8.7%. Granite Ridge Resources's payout ratio is -209.52%.

Insider Activity

In related news, Director Matthew Miller purchased 10,000 shares of the business's stock in a transaction that occurred on Friday, September 11th. The shares were acquired at an average price of $5.03 per share, for a total transaction of $50,300.00. Following the completion of the acquisition, the director directly owned 1,974,292 shares in the company, valued at approximately $9,930,688.76. The trade was a 0.51% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Ronald Kettler acquired 6,000 shares of Granite Ridge Resources stock in a transaction on Friday, September 4th. The shares were bought at an average cost of $5.05 per share, for a total transaction of $30,300.00. Following the completion of the transaction, the chief financial officer owned 135,276 shares in the company, valued at approximately $683,143.80. This trade represents a 4.64% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders have acquired 24,000 shares of company stock valued at $120,800. Company insiders own 8.60% of the company's stock.

Institutional Investors Weigh In On Granite Ridge Resources

Large investors have recently modified their holdings of the stock. Squarepoint Ops LLC purchased a new stake in Granite Ridge Resources in the second quarter worth about $1,329,000. BlackRock Inc. purchased a new position in shares of Granite Ridge Resources during the 2nd quarter worth approximately $21,910,000. Dimensional Fund Advisors LP grew its holdings in shares of Granite Ridge Resources by 15.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,306,999 shares of the company's stock worth $19,414,000 after acquiring an additional 448,066 shares during the period. Bank of New York Mellon Corp purchased a new position in shares of Granite Ridge Resources during the 2nd quarter worth approximately $4,162,000. Finally, Arrowstreet Capital Limited Partnership bought a new position in shares of Granite Ridge Resources in the 1st quarter worth approximately $6,624,000. Institutional investors own 31.56% of the company's stock.

Granite Ridge Resources Company Profile

Granite Ridge Resources, Inc is an independent energy company focused on acquiring, developing and managing oil and natural gas properties in the United States. The company primarily holds non-operated interests, allowing it to participate in a broad portfolio of wells while relying on third-party operators to conduct drilling and production activities.

Granite Ridge's asset portfolio is concentrated in major U.S. onshore oil and gas regions, including the Permian Basin and other established producing areas.

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