Matador Resources (MTDR) Is Today's Strong On High Volume Stock - TheStreet

Trade-Ideas LLC identified

Matador Resources

(

MTDR

) 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 $35.3 million.
  • MTDR has traded 87,264 shares today.
  • MTDR is trading at 2.32 times the normal volume for the stock at this time of day.
  • MTDR is trading at a new high 3.08% 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, engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. Currently there are 9 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 1.3 million shares per day over the past 30 days. Matador has a market cap of $2.1 billion and is part of the basic materials sector and energy industry. The stock has a beta of 0.09 and a short float of 10.8% with 6.04 days to cover. Shares are up 27% year-to-date as of the close of trading on Wednesday.

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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 solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • 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. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that MTDR's debt-to-equity ratio is low, the quick ratio, which is currently 0.69, displays a potential problem in covering short-term cash needs.
  • Despite the weak revenue results, MTDR has outperformed against the industry average of 34.1%. Since the same quarter one year prior, revenues fell by 14.1%. 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.
  • Net operating cash flow has significantly decreased to $20.04 million or 75.41% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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