(MGY) Magnolia Oil & Gas - Ratings and Ratios

Magnolia Oil & Gas Corporation, an independent oil and natural gas company, focuses on the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids reserves in the United States. The companys primary assets are located in Karnes County and the Giddings area in South Texas, targeting the Eagle Ford Shale and the Austin Chalk formation. These regions are known for their high hydrocarbon content and have been central to the companys growth since its incorporation in 2017. Headquartered in Houston, Texas, Magnolia Oil & Gas Corporation operates with a strategy emphasizing operational efficiency and long-term value creation.

From a technical perspective, Magnolia Oil & Gas Corp (NYSE: MGY) is currently trading at $21.22 with a 20-day average volume of 2,535,488 shares. The stocks short-term trend, as indicated by the SMA20 at $21.76, suggests a slight decline below its recent average. The SMA50 and SMA200 at $22.99 and $24.62, respectively, further confirm this trend, with the stock trading below these key moving averages. The ATR of 1.09 indicates relatively controlled volatility, suggesting that price movements have been moderate over the past 20 days.

Fundamentally, the company has a market capitalization of $4,092.45 million, reflecting its position as a mid-sized player in the oil and gas exploration and production sector. The trailing P/E of 10.87 and forward P/E of 12.59 suggest that investors expect moderate earnings growth in the coming year. The P/B ratio of 2.08 indicates that the stock is trading at a premium to its book value, which could signal confidence in the companys asset base. The P/S ratio of 3.11 and an RoE of 48.51 highlight the companys ability to generate profits from its operations and investor expectations for future performance.

3-Month Forecast: - Month 1: The stock is expected to remain range-bound between $20.50 and $22.50, with the SMA20 and SMA50 acting as resistance levels. The ATR of 1.09 suggests that volatility will remain moderate, with potential downside risks if the SMA20 fails to hold as support. - Month 2: If the stock breaks above the SMA50 at $22.99, it could test the SMA200 at $24.62. However, the forward P/E of 12.59 and P/B of 2.08 may cap upside momentum as investors weigh valuation metrics against earnings expectations. - Month 3: The stock is likely to enter a consolidation phase, with price action influenced by broader market sentiment and energy sector performance. The strong RoE of 48.51 could attract investors seeking exposure to profitable oil and gas producers, but the premium valuation (P/B of 2.08) may deter value-oriented investors.