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Magnolia Oil & Gas Corporation (MGY) stock rose in the pre-market trading session; here’s why

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Magnolia Oil & Gas Corporation (MGY) shares were rising 8.88%% to trade at $12.75 in the premarket session at the time of writing. MGY stock gained 7.53% to close Wednesday’s session at $11.71. The stock volume remained 1.95 million shares, which was lower than the average daily volume of 2.48 million shares within the past 50 days. MGY shares have risen by 156.80% over the last 12 months, and they have moved down by -2.17% in the past week. Over the past three months, the stock has gained 30.69%, while over the past six months, it has added 128.71%. Further, the company has a current market of $2.87 billion and its outstanding shares stood at 164.90 million.

Operational background of Magnolia Oil & Gas Corporation

Magnolia is a publicly traded company for the exploration and production of oil and gas.  The core of this company’s operations occurs in the Gidding Field of South Texas specifically in the Austin Chalk Formations and Eagle Ford Shale as well as the Karnes County. Magnolia also engages in the acquisition of oil, natural gas, and natural gas liquids reserves that exist in the US.

Total assets and production capacity of Magnolia

The assets of the company as of 30th December 2020, include 460,398 acres of leasehold positions and around 1160 net wells that sum up the total production capacity to 61.8 thousand barrels of oil equivalent per day.

The recent performance of MGY stock; beating the estimates

The MGY stock has been showing some strong earning price performance and positive technical since the past month. The stock has moved higher by more than 15% since March and has made solid earnings estimate revision. This could mean that the prospect of MGY stock both for the long term and short term is expected to be bullish for analysts.

This prospect is further solidified by looking at the company’s fundamentals. MGY stock has established a consecutive record for breaking earnings estimates. This is true for the past 2 reports and highlights a 35% average surprise for the past two quarters.

The most recent quarter EPS forecast was $0.10, and Magnolia gave a 50% surprise boost to the earnings per share by reporting $0.15 earnings per share. This similarly happened for the previous quarter where the EPS jumped 20% to $0.06 per share as compared to $0.05 per share.

This beating of EPS consensus and forecast can credit to the rise in the share price of the stock however some companies can remain stable even if they miss the forecast estimate. Magnolia’s next earnings report is expected to be due on 5th May.

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