MTDR Jumps 7% as Energy Sector Rebounds

Matador Resources Co (NYSE: MTDR) shares rose nearly 7% on Oct. 16, closing at $57.48 as the energy sector outpaced a broader market decline. The Energy Select Sector SPDR gained more than 2.5% on the same session. The rally reversed losses from the prior two trading days for MTDR.

Other energy names also rose. Crescent Energy posted substantial gains, the company's data show.

MTDR trades at a price-to-sales ratio of 1.85, below its five-year median of roughly 2.4, according to GuruFocus. The company has an operating margin of 35.6% and a net margin of 18.85%, but free cash flow is negative. The trailing price-to-earnings ratio stands at 9.88x, slightly above the five-year median of 7.61x. GuruFocus' GF Value model, which relies on historical multiples, estimates intrinsic value at $63.89, about 10% above the current price. The same data set places MTDR's Altman Z-Score at 1.43, a level that typically flags distress risk within two years.

Insider activity presents a contrasting signal. Insiders purchased $3.5 million worth of MTDR shares over the past 12 months with no selling, GuruFocus reported. Seven premium-guru funds hold the stock, and five of them increased their positions in recent quarters.

MTDR has no Alpha Score under AlphaScala's proprietary system and carries an Unscored label. The full MTDR stock page has additional data.

GuruFocus assigns the stock a GF Score of 78 out of 100. Top marks go to valuation and profitability. Financial strength and momentum receive weak scores.