Magnolia Oil & Gas Corp (NYSE: MGY)’s stock price has decreased by -0.52 compared to its previous closing price of 23.24. However, the company has seen a -0.94% decrease in its stock price over the last five trading sessions. seekingalpha.com reported 2024-12-10 that Magnolia’s Q3 2024 total production was in-line with expectations despite some third-party midstream issues. Magnolia’s oil production has been tracking a bit above expectations, and it now should finish 2024 with low-double digits growth compared to 2023. Magnolia’s recent note offering pushes its note maturity to 2032, and it has no credit facility debt and more than $250 million in cash on hand.
Is It Worth Investing in Magnolia Oil & Gas Corp (NYSE: MGY) Right Now?
The price-to-earnings ratio for Magnolia Oil & Gas Corp (NYSE: MGY) is above average at 11.43x. The 36-month beta value for MGY is also noteworthy at 1.99. There are mixed opinions on the stock, with 6 analysts rating it as a “buy,” 2 rating it as “overweight,” 7 rating it as “hold,” and 2 rating it as “sell.”
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The public float for MGY is 186.29M, and at present, short sellers hold a 15.81% of that float. The average trading volume of MGY on December 27, 2024 was 1.91M shares.
MGY’s Market Performance
MGY’s stock has seen a -0.94% decrease for the week, with a -17.99% drop in the past month and a -2.45% fall in the past quarter. The volatility ratio for the week is 2.27%, and the volatility levels for the past 30 days are at 2.56% for Magnolia Oil & Gas Corp The simple moving average for the last 20 days is -8.48% for MGY stock, with a simple moving average of -9.51% for the last 200 days.
Analysts’ Opinion of MGY
Many brokerage firms have already submitted their reports for MGY stocks, with Siebert Williams Shank repeating the rating for MGY by listing it as a “Hold.” The predicted price for MGY in the upcoming period, according to Siebert Williams Shank is $30 based on the research report published on October 15, 2024 of the current year 2024.
Wells Fargo, on the other hand, stated in their research note that they expect to see MGY reach a price target of $22, previously predicting the price at $26. The rating they have provided for MGY stocks is “Underweight” according to the report published on October 01st, 2024.
Wolfe Research gave a rating of “Outperform” to MGY, setting the target price at $32 in the report published on July 18th of the current year.
MGY Trading at -11.40% from the 50-Day Moving Average
After a stumble in the market that brought MGY to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -20.33% of loss for the given period.
Volatility was left at 2.56%, however, over the last 30 days, the volatility rate increased by 2.27%, as shares sank -17.28% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -9.55% lower at present.
During the last 5 trading sessions, MGY fell by -0.94%, which changed the moving average for the period of 200-days by -3.02% in comparison to the 20-day moving average, which settled at $25.26. In addition, Magnolia Oil & Gas Corp saw 8.60% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at MGY starting from EnerVest, Ltd., who sale 7,000,000 shares at the price of $25.86 back on Sep 23 ’24. After this action, EnerVest, Ltd. now owns 2,099,403 shares of Magnolia Oil & Gas Corp, valued at $181,020,000 using the latest closing price.
Walker John B, the Director of Magnolia Oil & Gas Corp, sale 7,000,000 shares at $25.86 during a trade that took place back on Sep 23 ’24, which means that Walker John B is holding 2,099,403 shares at $181,020,000 based on the most recent closing price.
Stock Fundamentals for MGY
Current profitability levels for the company are sitting at:
- 0.4 for the present operating margin
- 0.52 for the gross margin
The net margin for Magnolia Oil & Gas Corp stands at 0.29. The total capital return value is set at 0.21. Equity return is now at value 20.95, with 13.70 for asset returns.
Based on Magnolia Oil & Gas Corp (MGY), the company’s capital structure generated 0.17 points at debt to capital in total, while cash flow to debt ratio is standing at 2.39. The debt to equity ratio resting at 0.21. The interest coverage ratio of the stock is 52.14.
Currently, EBITDA for the company is 878.67 million with net debt to EBITDA at 0.13. When we switch over and look at the enterprise to sales, we see a ratio of 3.46. The receivables turnover for the company is 9.63for trailing twelve months and the total asset turnover is 0.47. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.47.
Conclusion
In summary, Magnolia Oil & Gas Corp (MGY) has had a mixed performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
