Granite Ridge Resources (NYSE:GRNT) Trading Down 4.4% - Should You Sell?

Key Points

• Granite Ridge Resources shares fell 4.4% to about $5.09, with trading volume down 93% from the average daily level.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating and an average price target of $10, nearly double the recent trading price.
• The company exceeded quarterly earnings and revenue expectations and pays a quarterly dividend of $0.11 per share, equivalent to an 8.8% annualized yield; insiders also purchased 24,000 shares in the latest quarter.

Shares of Granite Ridge Resources, Inc. (NYSE:GRNT - Get Free Report) fell 4.4% on Wednesday . The stock traded as low as $5.09 and last traded at $5.0850. Approximately 70,161 shares changed hands during mid-day trading, a decline of 93% from the average daily volume of 946,711 shares. The stock had previously closed at $5.32.

Wall Street Analysts Forecast Growth

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

Granite Ridge Resources Price Performance

The stock has a fifty day moving average of $4.91 and a 200-day moving average of $5.11. The firm has a market capitalization of $661.48 million, a P/E ratio of -23.83 and a beta of 0.21. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 0.76.

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

Granite Ridge Resources Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 14th. Shareholders of record on Friday, August 28th were issued a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a yield of 8.8%. The ex-dividend date of this dividend was Friday, August 28th. Granite Ridge Resources's payout ratio is currently -209.52%.

Insider Transactions at Granite Ridge Resources

In other Granite Ridge Resources news, Director John McCartney acquired 5,000 shares of Granite Ridge Resources stock in a transaction on Tuesday, September 1st. The shares were purchased at an average cost of $5.04 per share, with a total value of $25,200.00. Following the completion of the purchase, the director owned 154,143 shares in the company, valued at $776,880.72. The trade was a 3.35% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Matthew Miller bought 10,000 shares of the stock in a transaction on Friday, September 11th. The shares were acquired at an average cost of $5.03 per share, with a total value of $50,300.00. Following the acquisition, the director directly owned 1,974,292 shares in the company, valued at approximately $9,930,688.76. This trade represents a 0.51% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders acquired a total of 24,000 shares of company stock worth $120,800 in the last quarter. 8.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Granite Ridge Resources

A number of institutional investors and hedge funds have recently added to or reduced their stakes in GRNT. BlackRock Inc. bought a new stake in shares of Granite Ridge Resources in the 2nd quarter valued at about $21,910,000. Dimensional Fund Advisors LP boosted 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 buying an additional 448,066 shares during the period. Arrowstreet Capital Limited Partnership acquired a new position in Granite Ridge Resources in the 1st quarter valued at $6,624,000. Bank of New York Mellon Corp grew its stake in shares of Granite Ridge Resources by 1.3% in the first quarter. Bank of New York Mellon Corp now owns 949,688 shares of the company's stock valued at $5,575,000 after acquiring an additional 12,089 shares in the last quarter. Finally, Zazove Associates LLC raised its stake in Granite Ridge Resources by 1.4% in the 1st quarter. Zazove Associates LLC now owns 692,956 shares of the company's stock worth $4,068,000 after purchasing an additional 9,900 shares in the last quarter. Institutional investors own 31.56% of the company's stock.

Granite Ridge Resources Company Profile

Granite Ridge Resources, Inc NYSE: GRNT is an independent oil and natural gas exploration and production company focused primarily on non-operated assets. Rather than serving as the primary operator of most properties, the company invests alongside established exploration and production companies and participates in the development of unconventional wells.

The company's portfolio includes interests in producing properties, undeveloped acreage and mineral assets across several major U.S.

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