Northern Oil and Gas (NYSE:NOG) Shares Drop 4.3% – Reasons Behind the Decline

On December 8th, 2024, Northern Oil and Gas, Inc. (NYSE:NOG) experienced a share price decrease of 4.3% during trading. The stock reached a low of $39.63 and finished trading at $39.71, with a total volume of 291,391 shares traded, marking a significant decline of 78% compared to the average volume of 1,301,904 shares. Previously, the stock had closed at $41.51.

Analysts' Perspectives

Various analysts have provided their insights regarding Northern Oil and Gas. Truist Financial recently raised their target price from $44.00 to $51.00 and affirmed a "buy" rating on the company in a report dated November 7th. Mizuho initiated coverage on the company on September 19th, assigning an "outperform" rating with a target price of $47.00. Meanwhile, the Royal Bank of Canada adjusted their rating from "outperform" to "sector perform" while increasing their target price from $43.00 to $45.00 on November 20th. Morgan Stanley reduced their target price from $42.00 to $39.00, giving the company an "equal weight" rating on September 16th. Lastly, Jefferies Financial Group issued a "buy" rating with a target price of $53.00 on October 3rd. Currently, one analyst has a sell rating, three have hold ratings, seven have buy ratings, and one has a strong buy rating on the company's stock. As per MarketBeat, the average rating is considered a "Moderate Buy" with a consensus target price of $47.50.

Company Stock Overview

Northern Oil and Gas has a solid financial structure, featuring a debt-to-equity ratio of 0.84, a current ratio of 1.23, and a quick ratio of 1.23. The company shows a 50-day simple moving average of $39.58 and a 200-day simple moving average of $38.73. With a market capitalization of $4.02 billion, the stock reports a price-to-earnings ratio (P/E) of 4.83 and a beta of 1.85.

The company's latest earnings report, released on November 5th, showed an earnings per share (EPS) of $1.40 for the quarter, surpassing analysts' expectations of $1.20 by $0.20. The firm realized a return on equity of 27.52% and net margins of 33.44%. Revenue for the reported quarter was $753.64 million, significantly above the estimates of $540.23 million, with a notable 140% increase year over year compared to the same quarter last year, which recorded an EPS of $1.73. Analysts project that Northern Oil and Gas will report 5.4 earnings per share for the current fiscal year.

Dividend News

Northern Oil and Gas has recently declared a quarterly dividend scheduled for payment on January 31st. Record shareholders as of December 30th will receive a dividend of $0.42 per share, translating into an annualized dividend of $1.68 and a yield of 4.18%. The ex-dividend date is set for December 30th, and the company’s payout ratio stands at 20.17%.

Insider Activity

In recent insider transactions, CFO Chad W. Allen sold 1,500 shares on October 7th for an average price of $40.00, totaling $60,000. Following this, he now maintains ownership of 83,792 shares valued around $3,351,680, a decrease of 1.76% in his stake. Additionally, President Adam A. Dirlam sold 2,508 shares on October 3rd at an average price of $38.50, amounting to $96,558, resulting in a 2.27% reduction in his holdings, now totaling 107,876 shares valued at approximately $4,153,226. During the last quarter, insiders have sold a cumulative 6,508 shares worth $248,113, with insiders owning 2.80% of the company's stock.

Institutional Investor Activity

Recent transactions involving institutional investors have shown an increase in movement in Northern Oil and Gas shares. Icon Wealth Advisors LLC acquired a new stake in the company worth $828,000 during the third quarter. American Century Companies Inc. increased their ownership by 11.0% in the second quarter, now holding 5,566,459 shares valued at $206,905,000 after adding 552,645 shares. Emerald Mutual Fund Advisers Trust also boosted their stake by 18.5%, owning 453,414 shares valued at $16,853,000 following the purchase of an additional 70,709 shares. Similarly, SG Americas Securities LLC's stake surged by 1,772.3%, now owning 116,045 shares worth $4,313,000. Qsemble Capital Management LP also made a new acquisition during the second quarter worth $625,000. As of now, institutional investors collectively own 98.80% of the company’s stock.

About Northern Oil and Gas

Northern Oil and Gas, Inc. operates as an independent energy company that focuses on the acquisition, exploration, and production of crude oil and natural gas within the United States. Its primary interests are located in the Williston Basin, the Appalachian Basin, and the Permian Basin.

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