On Thursday, the oil and natural gas exploration company declared a semi-annual dividend of $3 a share on its 2 million shares of 6% convertible perpetual preferred stock. The company will pay the dividend in cash on July 15 to shareholders of record on July 1.
The stock was up 2.3% to $7.11 at 1:12 p.m. More than 9.2 million shares changed hands, which beat the average volume of 7,647,110.
Separately, TheStreet Ratings team rates SANDRIDGE ENERGY INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SANDRIDGE ENERGY INC (SD) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 73.3% when compared to the same quarter one year prior, rising from -$479.34 million to -$128.02 million.
- Powered by its strong earnings growth of 71.84% and other important driving factors, this stock has surged by 47.10% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- SANDRIDGE ENERGY INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SANDRIDGE ENERGY INC reported poor results of -$1.27 versus -$0.14 in the prior year. This year, the market expects an improvement in earnings ($0.20 versus -$1.27).
- The gross profit margin for SANDRIDGE ENERGY INC is currently lower than what is desirable, coming in at 32.38%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -28.89% is significantly below that of the industry average.
- Net operating cash flow has decreased to $90.45 million or 25.52% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: SD Ratings Report