Matador Resources (NYSE:MTDR) Stock Price Down 4.6% - Here's Why

Key Points

• Matador Resources shares fell 4.6% to about $60.28, despite unusually low trading volume compared with its average session.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $66.80, though several firms recently adjusted their targets in both directions.
• The company reported stronger-than-expected quarterly results, including $2.61 in EPS and $1.17 billion in revenue, while maintaining a quarterly dividend of $0.375 and recording recent insider purchases.

Matador Resources Company (NYSE:MTDR - Get Free Report)'s share price was down 4.6% during trading on Wednesday . The company traded as low as $60.22 and last traded at $60.2760. Approximately 82,406 shares traded hands during trading, a decline of 96% from the average session volume of 1,886,850 shares. The stock had previously closed at $63.17.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on MTDR. Wall Street Zen raised Matador Resources from a "hold" rating to a "buy" rating in a report on Saturday, August 15th. Wells Fargo & Company raised shares of Matador Resources from an "equal weight" rating to an "overweight" rating and reduced their price target for the company from $79.00 to $77.00 in a research report on Wednesday, September 2nd. KeyCorp boosted their target price on shares of Matador Resources from $68.00 to $73.00 and gave the company an "overweight" rating in a research report on Tuesday. Truist Financial reduced their target price on shares of Matador Resources from $63.00 to $59.00 and set a "buy" rating for the company in a report on Monday, August 10th. Finally, UBS Group increased their price target on shares of Matador Resources from $56.00 to $64.00 and gave the stock a "neutral" rating in a research report on Monday. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $66.80.

Matador Resources Trading Down 6.1%

The stock's 50-day simple moving average is $54.47 and its two-hundred day simple moving average is $55.79. The company has a debt-to-equity ratio of 0.67, a current ratio of 0.65 and a quick ratio of 0.62. The firm has a market capitalization of $7.34 billion, a P/E ratio of 10.14 and a beta of 0.79.

Matador Resources (NYSE:MTDR - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The energy company reported $2.61 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.08 by $0.53. Matador Resources had a return on equity of 13.18% and a net margin of 19.85%.The business had revenue of $1.17 billion during the quarter, compared to analyst estimates of $1.06 billion. During the same quarter in the prior year, the business posted $1.53 EPS. Matador Resources's revenue for the quarter was up 32.5% compared to the same quarter last year. Equities research analysts expect that Matador Resources Company will post 7.55 EPS for the current year.

Matador Resources Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 8th. Shareholders of record on Monday, August 10th were paid a $0.375 dividend. This represents a $1.50 annualized dividend and a yield of 2.5%. The ex-dividend date was Monday, August 10th. Matador Resources's dividend payout ratio is presently 25.73%.

Insider Buying and Selling at Matador Resources

In related news, CFO Christopher P. Calvert bought 2,500 shares of the company's stock in a transaction that occurred on Thursday, August 27th. The stock was purchased at an average price of $56.64 per share, for a total transaction of $141,600.00. Following the completion of the transaction, the chief financial officer owned 44,000 shares in the company, valued at $2,492,160. The trade was a 6.02% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Joseph Foran bought 555 shares of the business's stock in a transaction that occurred on Wednesday, August 26th. The shares were bought at an average cost of $54.49 per share, with a total value of $30,241.95. Following the completion of the purchase, the chief executive officer directly owned 4,772 shares of the company's stock, valued at $260,026.28. This represents a 13.16% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders purchased a total of 23,144 shares of company stock valued at $1,211,793 in the last three months. 5.90% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. BlackRock Inc. bought a new position in Matador Resources during the second quarter valued at approximately $573,936,000. Dimensional Fund Advisors LP raised its holdings in shares of Matador Resources by 4.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 6,948,104 shares of the energy company's stock worth $439,010,000 after acquiring an additional 277,839 shares in the last quarter. LSV Asset Management boosted its position in shares of Matador Resources by 8.8% during the 4th quarter. LSV Asset Management now owns 3,842,011 shares of the energy company's stock valued at $163,055,000 after acquiring an additional 309,708 shares during the last quarter. First Trust Advisors LP boosted its position in shares of Matador Resources by 103.3% during the 1st quarter. First Trust Advisors LP now owns 1,595,415 shares of the energy company's stock valued at $100,798,000 after acquiring an additional 810,808 shares during the last quarter. Finally, Geode Capital Management LLC grew its holdings in shares of Matador Resources by 0.8% in the fourth quarter. Geode Capital Management LLC now owns 2,236,457 shares of the energy company's stock valued at $94,942,000 after purchasing an additional 18,729 shares in the last quarter. Hedge funds and other institutional investors own 91.98% of the company's stock.

Matador Resources Company Profile

Matador Resources Company is an independent energy company engaged in the exploration, development, production and acquisition of oil, natural gas and natural gas liquids. The company focuses primarily on unconventional, horizontal drilling and development activities in the United States.

Matador's principal operations are concentrated in the Delaware Basin, a sub-basin of the Permian Basin in southeastern New Mexico and West Texas. Its activities include drilling and completing wells, producing hydrocarbons, and managing mineral and leasehold interests associated with its development programs.

Through its midstream operations, including San Mateo Midstream, Matador also provides gathering, processing, transportation and water-handling services that support oil and natural gas production in the Delaware Basin.

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