Dallas, Texas 10/30/2013 (Financialstrend) – Matador Resources Co (NYSE:MTDR) is a $1.08 billion market capped oil and gas company. It has been downgraded by rating agency Canaccord Genuity to a Hold from earlier Buy rating. The announcement was made on October 23. Post the down grade, the stock posted 4.88% dip in its market value during past week’s trading. Its target price has also been pegged down by the rating firm to $21. The rating agency has put the stock on notice and expects to come up with updates post new developments that the company is likely to report in December. The analyst firm has reiterated that the low cost producer of oil and gas has continued to impress analysts with its low cost modelling of pad drilling and its operational excellence in reducing fracking costs by using new designs to drill wells. Canaccord Genuity has indicated that the 116% increase in valuation that the stock has seen in the past 12 months is due to the fact that investors have taken note of its strong operational strengths.
Over the past 12 months, the oil firm has managed to post sales of $201 million and has accounted for net loss of $48 million. During its 2Q operations, the company managed to post an increase of 18% in sales in comparison to 2Q12. Its earnings per share shot up by a huge 475% in the same period. The stock has posted a significant 62% increase over its 200 day moving average. These reasons have keep both analyst and investors of the stock happy.
As of close of business on October 29, the stock was trading at $19.29 per share. This translates to a 10.4% dip over its previous 52 week high valuation and a 154% increase over its 52 week low pricing. Investors would be hoping that post the 3Q results, the stock rally would continue to strengthen.