Matador Resources (NYSE:MTDR) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Friday.
According to Zacks, “Matador’s negative free cash flows over the past few years have increased the probability of more reliance on debt and equity capital for funding future growth projects. Matador’s cash balance declined by 48%, while long-term debt increased by over 84% in the first nine months of 2018. Even in 2017, the cash balances decreased by 52%. We are also concerned with Matador’s rising total expenses. During the third quarter, production taxes, transportation and processing expenses rose 29%, lease operating expenses rose 35% and general and administrative expenses rose 14%, respectively. Moreover in Permian, there is dearth of pipeline capacity for transporting oil to Gulf Coast export facilities, major refinery terminals and principal hubs like Cushing. This has compelled Midland operators to sell stranded oil at a large discount to that in Cushing. Therefore, the stock warrants a cautious stance.”
Several other equities analysts have also recently weighed in on the company. SunTrust Banks restated a “hold” rating and set a $26.00 price target on shares of Matador Resources in a report on Thursday, November 29th. ValuEngine cut Matador Resources from a “sell” rating to a “strong sell” rating in a report on Saturday, December 15th. Oppenheimer restated a “buy” rating on shares of Matador Resources in a report on Wednesday, October 31st. Cowen began coverage on Matador Resources in a report on Thursday, November 29th. They set a “market perform” rating for the company. Finally, JPMorgan Chase & Co. cut Matador Resources from an “overweight” rating to a “neutral” rating and cut their price target for the company from $27.00 to $21.00 in a report on Friday, December 7th. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating and ten have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $35.76.
Matador Resources (NYSE:MTDR) last released its earnings results on Wednesday, October 31st. The energy company reported $0.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.37 by $0.11. Matador Resources had a return on equity of 11.17% and a net margin of 22.69%. The firm had revenue of $207.18 million during the quarter, compared to analysts’ expectations of $208.75 million. During the same quarter last year, the business posted $0.11 earnings per share. The firm’s revenue was up 64.1% on a year-over-year basis. Research analysts anticipate that Matador Resources will post 1.65 EPS for the current year.
In other Matador Resources news, Chairman Joseph Wm Foran purchased 2,000 shares of the firm’s stock in a transaction that occurred on Monday, December 10th. The stock was purchased at an average cost of $20.66 per share, with a total value of $41,320.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Reynald Baribault purchased 1,500 shares of the firm’s stock in a transaction that occurred on Friday, December 14th. The shares were acquired at an average cost of $17.47 per share, with a total value of $26,205.00. Following the completion of the purchase, the director now directly owns 26,659 shares in the company, valued at approximately $465,732.73. The disclosure for this purchase can be found here. In the last quarter, insiders bought 33,005 shares of company stock valued at $758,302. Company insiders own 11.10% of the company’s stock.
Several hedge funds have recently modified their holdings of MTDR. Canton Hathaway LLC bought a new stake in shares of Matador Resources during the 3rd quarter worth approximately $116,000. Northstar Investment Advisors LLC bought a new stake in shares of Matador Resources during the 3rd quarter worth approximately $205,000. Capital Fund Management S.A. bought a new stake in shares of Matador Resources during the 2nd quarter worth approximately $207,000. Wesbanco Bank Inc. bought a new stake in shares of Matador Resources during the 3rd quarter worth approximately $208,000. Finally, BB&T Corp bought a new stake in shares of Matador Resources during the 3rd quarter worth approximately $232,000. 87.53% of the stock is owned by hedge funds and other institutional investors.
Matador Resources Company Profile
Matador Resources Company, an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. It operates in two segments, Exploration and Production, and Midstream. The company primarily holds interests in the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas.
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