Last Updated: 20 Sep 2024
Executive Summary
Magnolia Oil & Gas Corp (MGY) is a Houston-based oil and gas exploration and production company with a market capitalization of $5.02 billion. The company has demonstrated strong financial performance, with revenue growth of 20.1% year-over-year and a profit margin of 29.4%. Analysts rate MGY as a buy, with a consensus price target of $28.21, representing a potential upside of 8.9%.
Company Overview
Magnolia Oil & Gas Corp operates in the United States, focusing on the acquisition, development, and production of oil, natural gas, and natural gas liquids. The company has a diversified portfolio of assets, including operations in the Eagle Ford Shale, Austin Chalk, and Mississippi Lime plays.
Fundamental Analysis
MGY's fundamentals are solid, with a trailing P/E ratio of 12.36, a forward P/E ratio of 13.19, and a PEG ratio of none. The company has a strong balance sheet with a book value of $9.65 per share and a low debt-to-equity ratio. MGY pays a dividend with a yield of 0.02%.
Technical Analysis
Technically, MGY is trading above its 50-day and 200-day moving averages. The stock is currently consolidating within a range between $25.17 and $27.48. A breakout above $27.48 could signal further upside potential.
Short Term Outlook
In the short term, MGY is expected to continue benefiting from strong oil and gas prices. The company's diversified portfolio and operational efficiency should support continued revenue and earnings growth. The stock is currently trading at a discount to its analyst target price, providing potential for short-term gains.
Long Term Outlook
The long-term outlook for MGY is positive. The company's strong financial position and experienced management team position it well to capitalize on the growing demand for oil and gas. The company's focus on sustainable operations and emissions reduction should also enhance its long-term prospects.
Analyst Recommendations
Analysts are bullish on MGY, with four strong buy ratings and six buy ratings. The consensus analyst price target is $28.21, representing an upside potential of 8.9% from the current price of $25.91.
