TXO Partners (NYSE:TXO) Shares Gap Down - What's Next?

Key Points

• TXO Partners shares opened lower, falling from a prior close of $13.14 to $12.58 before recovering to around $13.03. The company has a market capitalization of approximately $724 million.
• Analyst sentiment is mixed: Raymond James reiterated a “Strong Buy,” while other firms issued “Sell” or “Strong Sell” ratings. MarketBeat reports a consensus rating of “Hold” and an average price target of $18.50.
• TXO reported a significant quarterly earnings and revenue shortfall, posting a loss of $1.35 per share versus an expected loss of $0.05. However, it raised its quarterly dividend to $0.36, representing an annualized yield of about 11%, while insiders purchased 2.36 million shares over the past 90 days.

TXO Partners LP (NYSE:TXO - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $13.14, but opened at $12.58. TXO Partners shares last traded at $13.03, with a volume of 8,571 shares changing hands.

Analyst Ratings Changes

Several research firms recently weighed in on TXO. Weiss Ratings downgraded shares of TXO Partners from a "sell (d+)" rating to a "sell (d)" rating in a research report on Tuesday, May 12th. Raymond James Financial reiterated a "strong-buy" rating on shares of TXO Partners in a research note on Wednesday, April 29th. Wall Street Zen cut TXO Partners from a "hold" rating to a "sell" rating in a report on Saturday, June 27th. Finally, Zacks Research downgraded TXO Partners from a "hold" rating to a "strong sell" rating in a research report on Monday, July 6th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $18.50.

TXO Partners Price Performance

The firm has a market cap of $724.20 million, a PE ratio of -7.12 and a beta of 0.07. The stock's fifty day moving average price is $13.00 and its 200-day moving average price is $12.47. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.43 and a quick ratio of 0.43.

TXO Partners (NYSE:TXO - Get Free Report) last posted its quarterly earnings results on Monday, May 4th. The company reported ($1.35) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($1.30). The business had revenue of $28.28 million during the quarter, compared to analysts' expectations of $110.71 million. TXO Partners had a negative return on equity of 14.13% and a negative net margin of 28.52%. As a group, equities analysts expect that TXO Partners LP will post 0.13 EPS for the current fiscal year.

TXO Partners Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 22nd. Shareholders of record on Friday, May 15th were paid a $0.36 dividend. This is a positive change from TXO Partners's previous quarterly dividend of $0.30. The ex-dividend date of this dividend was Friday, May 15th. This represents a $1.44 dividend on an annualized basis and a yield of 11.0%. TXO Partners's dividend payout ratio is -78.26%.

Insider Buying and Selling at TXO Partners

In related news, Director Bob R. Simpson purchased 500,000 shares of the company's stock in a transaction dated Monday, May 11th. The stock was acquired at an average cost of $12.67 per share, for a total transaction of $6,335,000.00. Following the completion of the transaction, the director directly owned 7,500,000 shares of the company's stock, valued at approximately $95,025,000. This trade represents a 7.14% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. In the last 90 days, insiders purchased 2,360,000 shares of company stock worth $31,077,413.

Hedge Funds Weigh In On TXO Partners

A number of institutional investors have recently added to or reduced their stakes in the stock. Royal Bank of Canada grew its holdings in TXO Partners by 100.2% in the 4th quarter. Royal Bank of Canada now owns 2,603 shares of the company's stock valued at $28,000 after buying an additional 1,303 shares in the last quarter. Allied Private Wealth LLC acquired a new stake in shares of TXO Partners in the 2nd quarter worth $30,000. State of Wyoming purchased a new position in shares of TXO Partners during the 2nd quarter worth $45,000. Kestra Advisory Services LLC purchased a new position in shares of TXO Partners during the 4th quarter worth $49,000. Finally, Fund Advisors of America Inc FL acquired a new position in shares of TXO Partners during the 4th quarter valued at about $115,000. Hedge funds and other institutional investors own 27.44% of the company's stock.

TXO Partners Company Profile

TXO Partners is an independent upstream oil and natural gas company focused on the acquisition, development and production of unconventional resource plays in the United States. The firm holds working interests in producing and non-producing acreage, primarily targeting liquids-rich areas to optimize cash flow generation and capital efficiency. Its core business involves identifying under-developed assets, engineering cost-effective drilling programs and applying advanced completion techniques to enhance well performance.

The company’s operations are concentrated in key domestic basins, where horizontal drilling and multi-stage fracturing have unlocked significant reserves.

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