Vaalco Energy (NYSE:EGY) Shares Gap Down - Should You Sell?

Key Points

• Vaalco Energy shares fell 4.2%, opening at $5.36 versus the prior close of $5.55, with about 260,685 shares traded.
• Analyst sentiment is cautious: the stock has an average “Reduce” rating, including recent downgrades to “Sell,” although the average price target of $7.30 is above its current price.
• The company reported a significant quarterly earnings and revenue miss, alongside negative margins and return on equity. Vaalco nevertheless maintains a quarterly dividend of $0.0625, equal to a 4.7% annualized yield.

Vaalco Energy Inc (NYSE:EGY - Get Free Report)'s share price gapped down prior to trading on Monday . The stock had previously closed at $5.55, but opened at $5.36. Vaalco Energy shares last traded at $5.36, with a volume of 260,685 shares traded.

Analysts Set New Price Targets

EGY has been the subject of a number of recent research reports. Wall Street Zen downgraded Vaalco Energy from a "hold" rating to a "sell" rating in a research note on Saturday, May 16th. Weiss Ratings cut shares of Vaalco Energy from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, May 12th. Finally, Zacks Research upgraded shares of Vaalco Energy from a "strong sell" rating to a "hold" rating in a research report on Friday, May 1st. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $7.30.

Vaalco Energy Stock Down 4.2%

The company has a quick ratio of 0.47, a current ratio of 0.51 and a debt-to-equity ratio of 0.60. The firm has a market cap of $554.14 million, a price-to-earnings ratio of -3.89 and a beta of 0.09. The stock's 50 day moving average is $5.41 and its 200 day moving average is $5.40.

Vaalco Energy (NYSE:EGY - Get Free Report) last released its earnings results on Thursday, May 7th. The energy company reported ($0.45) earnings per share for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.44). The firm had revenue of $62.60 million during the quarter, compared to analyst estimates of $78.20 million. Vaalco Energy had a negative return on equity of 12.74% and a negative net margin of 45.86%. Analysts forecast that Vaalco Energy Inc will post 0.11 EPS for the current year.

Vaalco Energy Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, May 22nd were issued a $0.0625 dividend. The ex-dividend date was Friday, May 22nd. This represents a $0.25 annualized dividend and a dividend yield of 4.7%. Vaalco Energy's dividend payout ratio is -18.25%.

Institutional Investors Weigh In On Vaalco Energy

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in shares of Vaalco Energy in the 4th quarter worth approximately $1,638,000. North Star Investment Management Corp. lifted its stake in Vaalco Energy by 159.4% during the first quarter. North Star Investment Management Corp. now owns 275,000 shares of the energy company's stock valued at $1,744,000 after purchasing an additional 169,000 shares during the last quarter. Kornitzer Capital Management Inc. KS lifted its stake in Vaalco Energy by 4.7% during the first quarter. Kornitzer Capital Management Inc. KS now owns 3,378,835 shares of the energy company's stock valued at $21,422,000 after purchasing an additional 150,175 shares during the last quarter. UBS Group AG boosted its holdings in Vaalco Energy by 154.9% during the fourth quarter. UBS Group AG now owns 1,326,729 shares of the energy company's stock worth $4,829,000 after buying an additional 806,283 shares in the last quarter. Finally, Bank of New York Mellon Corp grew its position in Vaalco Energy by 7.0% in the first quarter. Bank of New York Mellon Corp now owns 1,178,683 shares of the energy company's stock worth $7,473,000 after buying an additional 77,054 shares during the last quarter. 50.32% of the stock is currently owned by institutional investors.

Vaalco Energy Company Profile

Vaalco Energy, Inc is an independent energy company principally engaged in the exploration, development and production of crude oil and natural gas. Headquartered in Houston, Texas, Vaalco concentrates on offshore assets in West Africa, with a strategic emphasis on maintaining and optimizing cash-flow–generating properties. Founded in the mid-1980s, the company has built its reputation by focusing on high-impact drilling prospects and extending the productive life of its core fields through targeted infill wells and enhanced recovery techniques.

The company's primary producing asset is the Etame Marin block offshore Gabon, where Vaalco holds a majority interest and serves as operator.

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