Matador Resources (NYSE:MTDR) Stock Price Up 6.7% - Time to Buy?

Key Points

• Matador Resources shares rose 6.7% to about $60.60, while trading volume was 76% below average. The company has a market capitalization of approximately $7.44 billion and a P/E ratio of 10.32.
• Analysts maintain a generally positive view, with 12 Buy ratings and five Holds, resulting in a “Moderate Buy” consensus and an average price target of $67.20.
• Matador exceeded quarterly earnings and revenue expectations, with EPS of $2.61 and revenue of $1.17 billion, while raising its quarterly dividend to $0.4375. Insiders also purchased more than 23,000 shares over the past 90 days.

Matador Resources Company (NYSE:MTDR - Get Free Report)'s stock price traded up 6.7% during trading on Friday. The stock traded as high as $60.74 and last traded at $60.6030. Approximately 448,884 shares changed hands during trading, a decline of 76% from the average session volume of 1,839,048 shares. The stock had previously closed at $56.79.

Wall Street Analyst Weigh In

MTDR has been the topic of several recent analyst reports. Seaport Research Partners assumed coverage on Matador Resources in a research note on Thursday, September 3rd. They issued a "neutral" rating on the stock. KeyCorp upped their price target on Matador Resources from $68.00 to $73.00 and gave the company an "overweight" rating in a research report on Tuesday, September 15th. Wall Street Zen cut Matador Resources from a "strong-buy" rating to a "buy" rating in a report on Saturday, October 17th. Scotiabank initiated coverage on Matador Resources in a research note on Thursday, October 15th. They set a "sector perform" rating and a $59.00 target price on the stock. Finally, Morgan Stanley upped their target price on Matador Resources from $66.00 to $69.00 and gave the company an "equal weight" rating in a report on Thursday, October 15th. Twelve equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $67.20.

Matador Resources Stock Up 5.9%

The company has a quick ratio of 0.62, a current ratio of 0.65 and a debt-to-equity ratio of 0.67. The company's fifty day simple moving average is $56.32 and its 200 day simple moving average is $55.11. The firm has a market capitalization of $7.44 billion, a PE ratio of 10.32 and a beta of 0.98.

Matador Resources (NYSE:MTDR - Get Free Report) last posted its earnings results on Wednesday, August 5th. The energy company reported $2.61 earnings per share 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 firm had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.06 billion. During the same quarter in the prior year, the business earned $1.53 EPS. The business's revenue for the quarter was up 32.5% on a year-over-year basis. Analysts anticipate that Matador Resources Company will post 7.62 earnings per share for the current fiscal year.

Matador Resources Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 4th. Shareholders of record on Tuesday, November 10th will be issued a $0.4375 dividend. This represents a $1.75 dividend on an annualized basis and a yield of 2.9%. This is a positive change from Matador Resources's previous quarterly dividend of $0.3750. The ex-dividend date is Tuesday, November 10th. Matador Resources's dividend payout ratio is currently 25.73%.

Insider Buying and Selling at Matador Resources

In other Matador Resources news, EVP William Elsener purchased 850 shares of the firm's stock in a transaction that occurred on Monday, August 10th. The stock was bought at an average cost of $50.94 per share, for a total transaction of $43,299.00. Following the purchase, the executive vice president directly owned 114,879 shares in the company, valued at $5,851,936.26. The trade was a 0.75% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Christopher P. Calvert purchased 2,500 shares of the stock in a transaction that occurred on Thursday, August 27th. The shares were acquired at an average cost of $56.64 per share, with a total value 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. This trade represents a 6.02% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders bought 23,144 shares of company stock valued at $1,211,793. 5.90% of the stock is currently owned by company insiders.

Institutional Trading of Matador Resources

Hedge funds have recently made changes to their positions in the stock. Tectonic Advisors LLC raised its stake in Matador Resources by 17.9% during the 3rd quarter. Tectonic Advisors LLC now owns 36,643 shares of the energy company's stock valued at $1,890,000 after buying an additional 5,570 shares during the last quarter. Inspire Investing LLC bought a new stake in Matador Resources during the 3rd quarter worth approximately $371,000. Root Financial Partners LLC purchased a new position in shares of Matador Resources during the 3rd quarter valued at $25,000. Crescent Grove Advisors LLC purchased a new position in shares of Matador Resources in the third quarter valued at about $201,000. Finally, Trifecta Capital Advisors LLC grew its holdings in Matador Resources by 712.6% during the 3rd quarter. Trifecta Capital Advisors LLC now owns 10,970 shares of the energy company's stock valued at $566,000 after buying an additional 9,620 shares in the last quarter. 91.98% of the stock is owned by institutional investors.

Matador Resources Company Profile

Matador Resources Company NYSE: MTDR 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, or shale, resource plays and operates across both upstream exploration and production and related midstream activities.

Matador's principal exploration and production operations are located in the Delaware Basin in southeastern New Mexico and West Texas. Its midstream operations, conducted primarily through San Mateo Midstream, provide natural gas gathering and processing, crude oil and produced-water gathering, and water sourcing and disposal services that support the company's operations and other producers in the region.

Founded in 2003 and headquartered in Dallas, Texas, Matador has historically expanded through development and acquisitions in U.S.

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