Vital Energy (NYSE:VTLE) Shares Gap Up - Still a Buy?

Key Points

• Vital Energy's share price gapped up from a previous close of $15.79 to an opening price of $16.80, and it last traded at $17.78 with a volume of over 3.4 million shares.
• Analysts have downgraded Vital Energy's ratings, with Wall Street Zen moving from "hold" to "sell" and Piper Sandler adjusting their price objective from $17.00 to $16.00, resulting in a consensus rating of "Reduce" and a target price of $28.20.
• The company reported quarterly earnings of $2.02 EPS, exceeding estimates, but its revenue decreased by 9.8% year-over-year, raising concerns as analysts project earnings of $8.49 EPS for the current year.

Shares of Vital Energy, Inc. (NYSE:VTLE - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $15.79, but opened at $16.80. Vital Energy shares last traded at $17.78, with a volume of 3,444,935 shares.

Analyst Ratings Changes

VTLE has been the subject of a number of research reports. Wall Street Zen downgraded shares of Vital Energy from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Mizuho cut their price target on shares of Vital Energy from $29.00 to $23.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 13th. Wells Fargo & Company restated a "mixed" rating on shares of Vital Energy in a report on Tuesday, July 15th. Piper Sandler reduced their target price on shares of Vital Energy from $17.00 to $16.00 and set a "neutral" rating for the company in a research report on Thursday, August 14th. Finally, Raymond James Financial cut shares of Vital Energy from an "outperform" rating to an "underperform" rating in a report on Tuesday, June 24th. One analyst has rated the stock with a Buy rating, six have issued a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Reduce" and a consensus price target of $28.20.

Vital Energy Price Performance

The company has a market capitalization of $667.38 million, a P/E ratio of -0.87 and a beta of 1.60. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.10. The business's 50-day moving average price is $17.07 and its 200 day moving average price is $18.84.

Vital Energy (NYSE:VTLE - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported $2.02 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.98 by $0.04. The firm had revenue of $429.63 million during the quarter, compared to the consensus estimate of $481.25 million. Vital Energy had a positive return on equity of 11.86% and a negative net margin of 38.52%.The company's revenue for the quarter was down 9.8% on a year-over-year basis. During the same quarter last year, the company posted $1.46 EPS. Analysts anticipate that Vital Energy, Inc. will post 8.49 EPS for the current fiscal year.

Insiders Place Their Bets

In other Vital Energy news, major shareholder Richard D. Campbell sold 50,000 shares of the business's stock in a transaction that occurred on Thursday, July 10th. The stock was sold at an average price of $18.12, for a total value of $906,000.00. Following the completion of the sale, the insider owned 7,568,933 shares in the company, valued at approximately $137,149,065.96. The trade was a 0.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 1.50% of the company's stock.

Hedge Funds Weigh In On Vital Energy

Several hedge funds have recently made changes to their positions in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Vital Energy by 3.4% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 16,278 shares of the company's stock worth $503,000 after purchasing an additional 535 shares during the period. Comerica Bank increased its position in Vital Energy by 6.1% in the fourth quarter. Comerica Bank now owns 12,796 shares of the company's stock worth $396,000 after buying an additional 730 shares in the last quarter. Parallel Advisors LLC grew its position in shares of Vital Energy by 58.7% during the second quarter. Parallel Advisors LLC now owns 2,000 shares of the company's stock worth $32,000 after purchasing an additional 740 shares in the last quarter. MetLife Investment Management LLC grew its holdings in Vital Energy by 5.9% during the 4th quarter. MetLife Investment Management LLC now owns 17,514 shares of the company's stock valued at $542,000 after buying an additional 972 shares in the last quarter. Finally, Legal & General Group Plc grew its holdings in Vital Energy by 1.5% during the 2nd quarter. Legal & General Group Plc now owns 68,635 shares of the company's stock valued at $1,104,000 after buying an additional 1,019 shares in the last quarter. 86.54% of the stock is owned by hedge funds and other institutional investors.

Vital Energy Company Profile

Vital Energy, Inc, an independent energy company, engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, the United States. The company was formerly known as Laredo Petroleum, Inc and changed its name to Vital Energy, Inc in January 2023.