Zacks Research Issues Pessimistic Forecast for MGY Earnings

Key Points

• Zacks Research cut Magnolia Oil & Gas’ Q3 2026 EPS forecast to $0.40 from $0.57 and maintains a “Hold” rating. Its FY2026 estimate of $2.71 is below the broader consensus, signaling a near-term earnings headwind.
• Magnolia recently beat quarterly expectations, reporting $0.99 EPS and $478.81 million in revenue, up 50.1% year over year. Zacks projects earnings growth thereafter, reaching $2.82 per share in FY2027 and $3.19 in FY2028.
• The company increased its quarterly dividend to $0.18 per share, or $0.72 annualized, yielding approximately 2.6%. Analyst sentiment remains broadly positive, with a MarketBeat consensus rating of “Moderate Buy” and an average price target of $31.62.

Magnolia Oil & Gas Corp (NYSE:MGY - Free Report) - Zacks Research lowered their Q3 2026 EPS estimates for Magnolia Oil & Gas in a research report issued on Thursday, August 20th. Zacks Research analyst Team now anticipates that the company will earn $0.40 per share for the quarter, down from their previous forecast of $0.57. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Magnolia Oil & Gas' current full-year earnings is $2.87 per share. Zacks Research also issued estimates for Magnolia Oil & Gas' Q4 2026 earnings at $0.78 EPS, FY2026 earnings at $2.71 EPS, Q1 2027 earnings at $0.72 EPS, Q2 2027 earnings at $0.68 EPS, Q3 2027 earnings at $0.68 EPS, Q4 2027 earnings at $0.74 EPS, FY2027 earnings at $2.82 EPS, Q1 2028 earnings at $0.72 EPS, Q2 2028 earnings at $0.81 EPS and FY2028 earnings at $3.19 EPS.

MGY has been the topic of a number of other reports. Mizuho raised shares of Magnolia Oil & Gas to a "strong-buy" rating in a report on Friday, July 31st. Weiss Ratings upgraded Magnolia Oil & Gas from a "hold (c)" rating to a "buy (b-)" rating in a research note on Tuesday, August 11th. Roth Capital lowered their price target on Magnolia Oil & Gas from $30.00 to $29.00 and set a "buy" rating for the company in a research report on Thursday, July 23rd. Citigroup lowered their price target on Magnolia Oil & Gas from $29.00 to $27.00 and set a "neutral" rating for the company in a research report on Tuesday, August 11th. Finally, Johnson Rice upgraded Magnolia Oil & Gas from a "hold" rating to an "accumulate" rating and dropped their price target for the company from $33.00 to $32.00 in a research note on Monday, August 17th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $31.62.

Magnolia Oil & Gas Trading Up 0.2%

Shares of Magnolia Oil & Gas stock opened at $28.20 on Monday. The firm's 50 day simple moving average is $26.00 and its two-hundred day simple moving average is $27.80. The firm has a market capitalization of $6.68 billion, a price-to-earnings ratio of 12.37 and a beta of 0.72. Magnolia Oil & Gas has a 12-month low of $21.07 and a 12-month high of $32.76. The company has a current ratio of 1.58, a quick ratio of 1.58 and a debt-to-equity ratio of 0.18.

Magnolia Oil & Gas (NYSE:MGY - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $0.99 EPS for the quarter, topping analysts' consensus estimates of $0.93 by $0.06. The company had revenue of $478.81 million during the quarter, compared to analysts' expectations of $458.10 million. Magnolia Oil & Gas had a net margin of 28.77% and a return on equity of 21.04%. Magnolia Oil & Gas's revenue for the quarter was up 50.1% on a year-over-year basis. During the same period last year, the business earned $0.41 EPS.

Magnolia Oil & Gas Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Monday, August 10th will be issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a dividend yield of 2.6%. This is a boost from Magnolia Oil & Gas's previous quarterly dividend of $0.17. The ex-dividend date of this dividend is Monday, August 10th. Magnolia Oil & Gas's dividend payout ratio is 31.58%.

Insider Activity

In other Magnolia Oil & Gas news, Director David M. Khani bought 8,000 shares of the firm's stock in a transaction that occurred on Friday, August 7th. The stock was bought at an average cost of $25.00 per share, for a total transaction of $200,000.00. Following the completion of the transaction, the director directly owned 30,622 shares of the company's stock, valued at approximately $765,550. This trade represents a 35.36% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 0.92% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Magnolia Oil & Gas

Institutional investors have recently modified their holdings of the stock. Arrowstreet Capital Limited Partnership lifted its stake in shares of Magnolia Oil & Gas by 790.8% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 6,263,808 shares of the company's stock valued at $197,748,000 after purchasing an additional 5,560,619 shares during the period. Epoch Investment Partners Inc. grew its position in Magnolia Oil & Gas by 58.7% during the third quarter. Epoch Investment Partners Inc. now owns 4,138,626 shares of the company's stock valued at $98,789,000 after buying an additional 1,531,061 shares during the period. HITE Hedge Asset Management LLC grew its position in Magnolia Oil & Gas by 661.5% during the fourth quarter. HITE Hedge Asset Management LLC now owns 1,454,388 shares of the company's stock valued at $31,837,000 after buying an additional 1,263,407 shares during the period. TD Asset Management Inc increased its holdings in Magnolia Oil & Gas by 26.6% in the fourth quarter. TD Asset Management Inc now owns 5,671,819 shares of the company's stock valued at $124,156,000 after buying an additional 1,193,458 shares in the last quarter. Finally, Bank of America Corp DE increased its holdings in Magnolia Oil & Gas by 20.5% in the first quarter. Bank of America Corp DE now owns 3,877,361 shares of the company's stock valued at $122,408,000 after buying an additional 659,012 shares in the last quarter. Hedge funds and other institutional investors own 94.73% of the company's stock.

Key Stories Impacting Magnolia Oil & Gas

Here are the key news stories impacting Magnolia Oil & Gas this week:

• Positive Sentiment: Zacks Research projects Magnolia’s earnings to improve to $2.82 per share in fiscal 2027 and $3.19 per share in fiscal 2028, suggesting expected earnings growth beyond 2026. The company also recently exceeded quarterly earnings and revenue expectations, with revenue up 50.1% year over year.
• Neutral Sentiment: Zacks Research maintained a Hold rating while issuing quarterly and annual estimates, including $0.72 EPS for Q1 2027, $0.68 for Q2 and Q3 2027, and $0.74 for Q4 2027. The firm expects $0.81 EPS for Q2 2028. Zacks Research estimates
• Neutral Sentiment: Magnolia Oil & Gas received a rating update from a top analyst, but the available report does not specify whether the recommendation or price target changed. Magnolia Oil & Gas rating update
• Negative Sentiment: Zacks lowered its Q3 2026 EPS forecast to $0.40 from $0.57. Its fiscal 2026 estimate of $2.71 per share is also below the broader consensus of $2.90, creating a near-term earnings headwind and likely explaining the weaker trading tone.

About Magnolia Oil & Gas

Magnolia Oil & Gas Corp NYSE: MGY is an independent exploration and production company focused on the acquisition, development and optimization of onshore oil and gas assets in South Texas. Headquartered in Houston, the company concentrates its efforts on the Eagle Ford Shale, where it holds significant working interests in key producing counties.

The company's core operations center on horizontal drilling and multi-stage completions designed to extract light crude oil, natural gas and natural gas liquids (NGLs).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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