Magnolia Oil & Gas (NYSE:MGY) Stock Price Up 3.6% After Analyst Upgrade

Key Points

• Magnolia Oil & Gas shares rose 3.6% after Siebert Williams Shank upgraded the stock to “buy” and raised its price target from $30 to $32. Analysts collectively rate MGY “Moderate Buy,” with an average target price of $31.81.
• Recent operating results exceeded expectations: quarterly EPS was $0.99 versus the $0.93 consensus, while revenue increased 50.1% year over year to $478.81 million.
• The company raised its quarterly dividend to $0.18, equivalent to an annualized $0.72 and a 2.9% yield. Institutional investors own 94.73% of the stock, and a company director recently purchased 8,000 shares.

Magnolia Oil & Gas Corp (NYSE:MGY - Get Free Report) was up 3.6% on Wednesday after Siebert Williams Shank upgraded the stock from a hold rating to a buy rating. Siebert Williams Shank now has a $32.00 price target on the stock, up from their previous price target of $30.00. Magnolia Oil & Gas traded as high as $24.92 and last traded at $24.8920. 1,818,931 shares were traded during mid-day trading, a decline of 47% from the average session volume of 3,461,990 shares. The stock had previously closed at $24.02.

MGY has been the subject of several other reports. Seaport Research Partners initiated coverage on shares of Magnolia Oil & Gas in a research note on Thursday, September 3rd. They set a "neutral" rating for the company. JPMorgan Chase & Co. raised Magnolia Oil & Gas from a "neutral" rating to an "overweight" rating and upped their price objective for the company from $32.00 to $33.00 in a report on Tuesday, September 8th. Truist Financial restated a "buy" rating and set a $34.00 price objective (up from $33.00) on shares of Magnolia Oil & Gas in a research report on Monday. Zacks Research raised Magnolia Oil & Gas from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 14th. Finally, Weiss Ratings upgraded shares of Magnolia Oil & Gas from a "hold (c)" rating to a "buy (b-)" rating in a research note on Tuesday, August 11th. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $31.81.

Insider Buying and Selling

In other news, Director David Khani purchased 8,000 shares of the company's stock in a transaction on Friday, August 7th. The shares were acquired at an average price of $25.00 per share, for a total transaction of $200,000.00. Following the purchase, the director owned 30,622 shares in the company, valued at $765,550. This trade represents a 35.36% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.92% of the company's stock.

Hedge Funds Weigh In On Magnolia Oil & Gas

Several hedge funds and other institutional investors have recently modified their holdings of the business. Tidal Investments LLC boosted its holdings in Magnolia Oil & Gas by 34.3% in the second quarter. Tidal Investments LLC now owns 93,383 shares of the company's stock valued at $2,389,000 after purchasing an additional 23,833 shares during the last quarter. Integrated Wealth Concepts LLC bought a new stake in shares of Magnolia Oil & Gas during the 2nd quarter worth about $72,000. IFP Advisors Inc raised its holdings in shares of Magnolia Oil & Gas by 12.2% in the 2nd quarter. IFP Advisors Inc now owns 9,180 shares of the company's stock worth $235,000 after purchasing an additional 999 shares in the last quarter. Allworth Financial LP grew its position in Magnolia Oil & Gas by 11.0% during the 2nd quarter. Allworth Financial LP now owns 5,760 shares of the company's stock worth $147,000 after purchasing an additional 571 shares in the last quarter. Finally, Arizona State Retirement System raised its holdings in shares of Magnolia Oil & Gas by 3.3% during the second quarter. Arizona State Retirement System now owns 49,947 shares of the company's stock worth $1,278,000 after acquiring an additional 1,579 shares in the last quarter. 94.73% of the stock is owned by hedge funds and other institutional investors.

Magnolia Oil & Gas Stock Performance

The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.58 and a current ratio of 1.58. The company has a market cap of $5.90 billion, a P/E ratio of 10.91 and a beta of 0.70. The firm has a 50 day moving average price of $26.21 and a 200-day moving average price of $27.75.

Magnolia Oil & Gas (NYSE:MGY - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.99 earnings per share for the quarter, beating analysts' consensus estimates of $0.93 by $0.06. Magnolia Oil & Gas had a net margin of 28.77% and a return on equity of 21.04%. The business had revenue of $478.81 million during the quarter, compared to analyst estimates of $458.10 million. During the same quarter last year, the business posted $0.41 earnings per share. Magnolia Oil & Gas's revenue for the quarter was up 50.1% compared to the same quarter last year. On average, research analysts predict that Magnolia Oil & Gas Corp will post 2.92 EPS for the current year.

Magnolia Oil & Gas Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Monday, August 10th were issued a $0.18 dividend. The ex-dividend date was Monday, August 10th. This is an increase from Magnolia Oil & Gas's previous quarterly dividend of $0.17. This represents a $0.72 dividend on an annualized basis and a yield of 2.9%. Magnolia Oil & Gas's dividend payout ratio is presently 31.58%.

About Magnolia Oil & Gas

Magnolia Oil & Gas Corporation NYSE: MGY is an independent energy company engaged in the acquisition, development, exploration and production of oil, natural gas and natural gas liquids. The company's operations are concentrated in the South Texas region of the United States.

Magnolia primarily develops assets in the Giddings Field, which spans parts of Gonzales and Fayette counties in Texas. Its acreage targets formations including the Eagle Ford Shale and the Austin Chalk, where the company uses horizontal drilling and hydraulic fracturing to produce hydrocarbons.

The company was established in 2017 through a combination involving South Texas oil and gas assets and became a publicly traded company in 2018.

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