Vaalco Energy (NYSE:EGY) Stock Price Down 5% - Here's Why

Key Points

• Vaalco Energy shares fell about 5% on Thursday, trading as low as $5.22 amid lighter-than-usual volume, after closing at $5.49 the prior day.
• Recent analyst sentiment has turned weaker, with multiple firms issuing sell ratings; MarketBeat shows an average rating of “Reduce” and a consensus price target of $7.30.
• Latest quarterly results missed expectations, as Vaalco reported a loss of $0.45 per share on revenue of $62.6 million, below analyst estimates. The company also pays a quarterly dividend yielding about 4.8%.

Shares of Vaalco Energy Inc (NYSE:EGY - Get Free Report) dropped 5% during trading on Thursday . The stock traded as low as $5.22 and last traded at $5.2150. Approximately 433,182 shares traded hands during mid-day trading, a decline of 71% from the average daily volume of 1,477,193 shares. The stock had previously closed at $5.49.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. Wall Street Zen cut shares of Vaalco Energy from a "hold" rating to a "sell" rating in a research note on Saturday, May 16th. Zacks Research raised Vaalco Energy from a "strong sell" rating to a "hold" rating in a research note on Friday, May 1st. Finally, Weiss Ratings cut Vaalco Energy from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, May 12th. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Vaalco Energy presently has an average rating of "Reduce" and a consensus price target of $7.30.

Vaalco Energy Trading Down 5.4%

The company's 50 day moving average price is $5.59 and its two-hundred day moving average price is $5.24. The firm has a market cap of $541.63 million, a PE ratio of -3.80 and a beta of 0.09. The company has a quick ratio of 0.47, a current ratio of 0.51 and a debt-to-equity ratio of 0.60.

Vaalco Energy (NYSE:EGY - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The energy company reported ($0.45) EPS for the quarter, missing the consensus estimate of ($0.01) by ($0.44). Vaalco Energy had a negative return on equity of 12.74% and a negative net margin of 45.86%.The company had revenue of $62.60 million during the quarter, compared to analysts' expectations of $78.20 million. As a group, sell-side 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. Investors of record on Friday, May 22nd were issued a $0.0625 dividend. This represents a $0.25 annualized dividend and a dividend yield of 4.8%. The ex-dividend date was Friday, May 22nd. Vaalco Energy's payout ratio is presently -18.25%.

Institutional Investors Weigh In On Vaalco Energy

Several hedge funds have recently modified their holdings of EGY. Universal Beteiligungs und Servicegesellschaft mbH bought a new stake in Vaalco Energy during the 4th quarter valued at $1,638,000. American Century Companies Inc. grew its holdings in Vaalco Energy by 7.2% in the third quarter. American Century Companies Inc. now owns 4,740,856 shares of the energy company's stock worth $19,058,000 after purchasing an additional 316,570 shares during the last quarter. North Star Investment Management Corp. increased its position in shares of 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 worth $1,744,000 after purchasing an additional 169,000 shares in the last quarter. UBS Group AG lifted its holdings in shares of Vaalco Energy by 154.9% during the 4th quarter. UBS Group AG now owns 1,326,729 shares of the energy company's stock valued at $4,829,000 after purchasing an additional 806,283 shares during the last quarter. Finally, RFG Advisory LLC purchased a new stake in shares of Vaalco Energy during the 1st quarter valued at $463,000. Hedge funds and other institutional investors own 50.32% of the company's stock.

About Vaalco Energy

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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