Matador Resources (NYSE: MTDR) received a significant boost in its stock rating from TD Cowen, which upgraded the energy company to a “strong-buy” in a report released on Monday. This change reflects growing confidence in the company’s future performance, coming as part of a series of recent assessments by various financial analysts.
Analysts have been actively evaluating Matador Resources, with BMO Capital Markets maintaining an “outperform” rating in a research note issued on December 18, 2023. Conversely, Bank of America revised its price target for the stock from $55.00 to $50.00, while affirming a “buy” rating in a report published on November 3, 2023. Citigroup also initiated coverage on Matador on December 8, 2023, giving it a “buy” rating with a target price of $53.00. Meanwhile, Royal Bank of Canada adjusted its price objective from $62.00 to $60.00, maintaining an “outperform” rating. Wells Fargo & Company, on the other hand, downgraded the stock from “overweight” to “equal weight,” setting a new price target of $47.00.
The diverse range of opinions illustrates the varying outlooks on Matador’s market position, with one equities research analyst rating the stock as a Strong Buy, ten giving it a Buy rating, and four opting for a Hold rating. According to MarketBeat, the consensus rating stands at “Moderate Buy,” with an average target price of $57.82.
Institutional Investor Activity
Recent movements among institutional investors and hedge funds signify a growing interest in Matador Resources. Kestra Investment Management LLC increased its stake in the company by 225.2% in the second quarter, now owning 517 shares valued at approximately $25,000 after acquiring an additional 358 shares.
Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in Matador by 298.5% during the same period, bringing its total to 534 shares, also valued at about $25,000. Allworth Financial LP expanded its position by 182.0%, now owning 564 shares worth $27,000 after adding 364 shares.
Ameritas Advisory Services LLC made a new investment in Matador worth approximately $29,000, while Rothschild Investment LLC significantly boosted its stake by 5,927.3% in the third quarter, now holding 663 shares valued at $30,000. Overall, institutional investors and hedge funds collectively own 91.98% of Matador’s stock.
Company Overview and Market Position
Matador Resources is an independent energy firm engaged in the exploration, development, and production of oil, natural gas liquids (NGLs), and natural gas. The company focuses on upstream operations, employing horizontal drilling and hydraulic fracturing techniques to extract hydrocarbons from key reservoirs.
The company’s operations are primarily concentrated in the Delaware Basin, a segment of the Permian Basin, which is one of North America’s most prolific oil-producing regions. Matador holds significant acreage in the regions of Reeves and Culberson counties in West Texas, as well as Eddy and Lea counties in New Mexico.
As analysts continue to assess Matador Resources, the recent upgrade by TD Cowen, alongside the activities of institutional investors, underscores the dynamic developments within the company and its potential for future growth in the energy sector.
