Strong On High Relative Volume: Matador Resources (MTDR)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Matador Resources as such a stock due to the following factors:
- MTDR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $16.5 million.
- MTDR has traded 117,725 shares today.
- MTDR is trading at 3.80 times the normal volume for the stock at this time of day.
- MTDR is trading at a new high 7.25% above yesterday's close.
'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on MTDR:
Matador Resources Company, an independent energy company, acquires, explores, develops, and produces oil and natural gas resources in the United States. MTDR has a PE ratio of 18.7. Currently there are 8 analysts that rate Matador Resources a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Matador Resources has been 1.1 million shares per day over the past 30 days. Matador has a market cap of $1.6 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.28 and a short float of 8.4% with 7.84 days to cover. Shares are up 5.7% year-to-date as of the close of trading on Monday.
Analysis:
rates Matador Resources as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- MTDR's very impressive revenue growth greatly exceeded the industry average of 18.7%. Since the same quarter one year prior, revenues leaped by 57.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MATADOR RESOURCES CO has improved earnings per share by 14.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MATADOR RESOURCES CO turned its bottom line around by earning $0.76 versus -$0.59 in the prior year. This year, the market expects an improvement in earnings ($1.05 versus $0.76).
- 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 47.3% when compared to the same quarter one year prior, rising from $20.11 million to $29.62 million.
- The gross profit margin for MATADOR RESOURCES CO is currently very high, coming in at 80.12%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 26.39% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 54.53% to $66.88 million when compared to the same quarter last year. In addition, MATADOR RESOURCES CO has also vastly surpassed the industry average cash flow growth rate of -12.58%.
- You can view the full Matador Resources Ratings Report.
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