Trade-Ideas LLC identified

Matador Resources

(

MTDR

) as a "dead cat bounce" (down big yesterday but up big today) 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 $32.2 million.
  • MTDR has traded 226,552 shares today.
  • MTDR is up 3% today.
  • MTDR was down 6.3% yesterday.

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More details on MTDR:

Matador Resources Company, an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. Currently there are 10 analysts that rate Matador Resources a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Matador Resources has been 1.4 million shares per day over the past 30 days. Matador has a market cap of $1.7 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.38 and a short float of 11.6% with 5.27 days to cover. Shares are down 5.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Matador Resources as a

hold

. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.

Highlights from the ratings report include:

  • Net operating cash flow has slightly increased to $72.53 million or 8.44% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -26.70%.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • Despite the weak revenue results, MTDR has outperformed against the industry average of 36.9%. Since the same quarter one year prior, revenues fell by 12.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, MATADOR RESOURCES CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 917.2% when compared to the same quarter one year ago, falling from $29.62 million to -$242.06 million.

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