Magnolia Oil & Gas Corporation (NYSE: MGY) stock fell -3.12% on Tuesday to $23.30 against a previous-day closing price of $24.05. With 1.51 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.59 million shares. During the session, the Oil & Gas E&P company that operates in wider Energy sector, reached to the highest price of $24.04 whereas the lowest price it dropped to was $23.28. The 52-week range on MGY shows that it touched its highest point at $30.31 and its lowest point at $18.01 during that stretch. It currently has a 1-year price target of $29.58. With its current market cap of 4.98 billion, MGY has annualized dividend of $0.20 while the current yield stands at 0.86%. Beta for the stock currently stands at 2.16.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MGY was down-trending over the past week, with a drop of -1.44%, but this was down by -0.43% over a month. Three-month performance dropped to -6.43% while six-month performance rose 3.60%. The stock gained 17.38% in the past year, while it has lost -0.64% so far this year. A look at the trailing 12-month EPS for MGY yields 4.36 with Next year EPS estimates of 3.26. For the next quarter, that number is 0.87. This implies an EPS growth rate of 132.70% for this year and -27.11% for next year. EPS is expected to grow by 12.63% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 87.25%.
Float and Shares Shorts:
At present, 188.63 million MGY shares are outstanding with a float of 169.78 million shares on hand for trading. On Oct 13, 2022, short shares totaled 16.4 million, which was 7.54% higher than short shares on Sep 14, 2022. In addition to Mr. Christopher G. Stavros as the firm’s CEO, CFO, Pres & Director, Mr. Steve F. Millican serves as its Sr. VP of Operations.
Through their ownership of 106.00% of MGY’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 62.12% of MGY, in contrast to 36.24% held by mutual funds. Shares owned by individuals account for 17.41%. As the largest shareholder in MGY with 8.47% of the stake, The Vanguard Group, Inc. holds 15,884,071 shares worth 15,884,071. A second-largest stockholder of MGY, T. Rowe Price Investment Manageme, holds 15,665,195 shares, controlling over 8.36% of the firm’s shares. AllianceBernstein LP is the third largest shareholder in MGY, holding 10,974,454 shares or 5.85% stake. With a 2.74% stake in MGY, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 5,145,411 shares are owned by the mutual fund manager. The T Rowe Price Small Cap Value Fund, which owns about 2.34% of MGY stock, is the second-largest Mutual Fund holder. It holds 4,390,177 shares valued at 102.95 million. Vanguard Small Cap Index Fund holds 2.32% of the stake in MGY, owning 4,347,837 shares worth 101.96 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MGY since 16 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MGY analysts setting a high price target of $35.00 and a low target of $25.00, the average target price over the next 12 months is $28.71. Based on these targets, MGY could surge 50.21% to reach the target high and rise by 7.3% to reach the target low. Reaching the average price target will result in a growth of 23.22% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MGY will report FY 2022 earnings on 02/14/2024. Analysts have provided yearly estimates in a range of $4.60 being high and $4.19 being low. For MGY, this leads to a yearly average estimate of $4.36. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Magnolia Oil & Gas Corporation surprised analysts by $0.16 when it reported $1.29 EPS against a consensus estimate of $1.13. The surprise factor in the prior quarter was $0.15. Based on analyst estimates, the high estimate for the next quarter is $1.07 and the low estimate is $0.63. The average estimate for the next quarter is thus $0.80.
Summary of Insider Activity:
Insiders traded MGY stock several times over the past three months with 2 Buys and 0 Sells. In these transactions, 243 shares were bought while 0 shares were sold. The number of buy transactions has increased to 23 while that of sell transactions has risen to 9 over the past year. The total number of shares bought during that period was 473,108 while 158,676 shares were sold.