Magnolia Oil & Gas Corporation [NYSE:MGY] price is worthing noting Friday. The current price is $5.16 with a high of $5.49 and $5.11. Analysts see the the current price target is $7.80.
To ground this price against the rest of the market, over the last two 52 weeks, the company is trading -49.71%, while the S&P 500 is trading 0.87%. Traders should note that the company’s next earning date is 11/05/2020. The company has price per sales of 1.83 and price per cash flow of 6.53.
The Bears are coming
Holding a Market Cap of $1.35 billion, Magnolia Oil & Gas Corporation has seen a trading range over the last year of $3.23-$13.28.
For the last five days, MGY is down from its last closing price. The average shares trading hands each day is 1.58M, with average 10-day volume coming in at 1.85 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for MGY. When we apply the Elder Force Index to Magnolia Oil & Gas Corporation, we are seeing an Elder Force Indicator number of -248417.59.
Recent Performance
The recent performance of the stock is another area that can tell traders how to proceed. MGY is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 8.85. Moreover, the company’s enterprise value has gone from $1.77B to $1.22B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, MGY made a profit of 76.05 million. Magnolia Oil & Gas Corporation also saw quarter revenue growth year over year of 6.09%. In addition, the company has operating cash flow of $504.07 million.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 5.26 compared to the 50-day moving average of 5.78. So, traders might want to tread carefully if they are going to bid.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. MGY currently holds a 9-day RSI of 40.26%, while 100-day RSI stands at 46.02%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. MGY’s 9-day MACD is 0.00 and the company’s 100-day MACD stands at -0.88.
Inside Moves
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 6.60% by insiders and 109.89% by institutions. Regarding institutional holdings, EnerVest Limited owns 20.94%, while the second top holder, Price (T.Rowe) Associates Inc, currently owns 10.11%.
Over the last six months, insiders have bought 35,000 with the most recent transaction from CHAZEN STEPHEN I, Chairman, President & CEO, with a purchase at price 5.59 per share.
Conclusion
Overall, the recommended rating for MGY is Moderate Buy. Currently, the company has 13 analysts watching the stock, and the average quarterly earnings estimate is 0.06. Quarterly revenue estimates are averaging 124.73M with the high estimate reaching 134.1M and the low at 103M.
To review, the current 1-year target estimate is sitting at 7.79, while the current price 5.16. Based on this, we expect the stock to rise considering the aforementioned fundamentals.
