Investors are poised to add Matador Resources Company (MTDR) Stock to their long term portfolios

At the time of writing, Matador Resources Company [MTDR] stock is trading at $63.45, up 1.68%. An important factor to consider is whether the stock is rising or falling in short-term value. The MTDR shares have gain 5.80% over the last week, with a monthly amount glided 10.64%, and seem to be holding up well over a long-time horizon.

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On 24, January 2023, Matador Resources Company Announces Strategic Bolt-on Delaware Basin Acquisition. In a post published today on Yahoo Finance, Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”) today announced that a wholly-owned subsidiary of Matador has entered into a definitive agreement to acquire Advance Energy Partners Holdings, LLC (“Advance”), including certain oil and natural gas producing properties and undeveloped acreage located in Lea County, New Mexico and Ward County, Texas (the “Advance Transaction”). The consideration for the Advance Transaction will consist of an initial cash payment of $1.6 billion, subject to customary closing adjustments, plus additional cash consideration of $7.5 million for each month during 2023 in which the average oil price as defined in the securities purchase agreement exceeds $85 per barrel. Advance is a portfolio company of EnCap Investments L.P. (“EnCap”).

From an analyst’s perspective:

Matador Resources Company [NYSE: MTDR] stock has seen the most recent analyst activity on January 10, 2023, when Mizuho initiated its Neutral rating and assigned the stock a price target of $70. On September 20, 2022, KeyBanc Capital Markets initiated with a Overweight rating and assigned a price target of $72 on the stock. Wells Fargo upgraded its rating to a Overweight and increased its price target to $53 on November 19, 2021. CapitalOne downgraded its rating to a Equal Weight and reduced its price target to $44 on October 28, 2021. The Benchmark Company upgraded its rating to Buy for this stock on October 27, 2021, but kept the price target unchanged to $50. In a note dated October 26, 2021, The Benchmark Company initiated an Hold rating.

For the past year, the stock price of Matador Resources Company fluctuated between $37.50 and $73.78. Currently, Wall Street analysts expect the stock to reach $73.43 within the next 12 months. Matador Resources Company [NYSE: MTDR] shares were valued at $63.45 at the most recent close of the market. An investor can expect a potential return of 15.73% based on the average MTDR price forecast.

Analyzing the MTDR fundamentals

According to Matador Resources Company [NYSE:MTDR], the company’s sales were 854.09 billion in the recent quarter, which represents an 78.00% jump. Gross Margin for this corporation currently stands at +58.46% with Operating Margin at +53.28%, Pretax Margin comes in at +38.42%, and Net Margin reading is +31.41%.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 62.14 points at the first support level, and at 60.83 for the second support level. However, for the 1st resistance point, the stock is sitting at 64.37, and for the 2nd resistance point, it is at 65.29.

Matador Resources Company [MTDR] reported earnings per share of $2.68 for its fiscal quarter that ended on 9/29/2022. Based on the Wall Street analysts’ estimates, the company was expected to report earnings of $2.49/share, meaning a difference of $0.19 and a surprise factor of 7.60%. By comparison, the stated earnings for the previous quarter ended on 6/29/2022 were $3.47 per share as compared to estimates of $3.12 per share, a difference of $0.35 representing a surprise of 11.20%.

Ratios To Look Out For

It is important to note that Matador Resources Company [NYSE:MTDR] has a current ratio of 1.50. On the other hand, the Quick Ratio is 0.77, and the Cash Ratio is 0.19. Considering the valuation of this stock, the price to sales ratio is 2.36, the price to book ratio is 2.28 and the P/E (TTM) ratio is 6.48.

Transactions by insiders

The next item on our agenda is insider trading, which has seen 10 insider purchases totaling 732,550 shares and 9 insider sales totaling 289,416 shares over the past 3 months. Recent insider trading involved Ehrman Monika U, Director, that happened on Dec 15 when 200.0 shares were purchased. Director, Ehrman Monika U completed a deal on May 04 to buy 200.0 shares.