Vaalco Energy (NYSE:EGY) Shares Gap Down on Disappointing Earnings

Vaalco Energy Inc (NYSE:EGY) shares gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $5.64, but opened at $5.20. Vaalco Energy shares last traded at $5.1960, with a volume of 634,388 shares.

The energy company reported ($0.02) earnings per share for the quarter, missing the consensus estimate of $0.02 by ($0.04). The company had revenue of $91.04 million for the quarter, compared to the consensus estimate of $76.30 million. Vaalco Energy had a negative net margin of 11.52% and a negative return on equity of 0.79%.

Vaalco Energy Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 27th. Shareholders of record on Friday, February 27th will be paid a dividend of $0.0625 per share. This represents a $0.25 dividend on an annualized basis and a yield of 4.6%. The ex-dividend date is Friday, February 27th. Vaalco Energy’s dividend payout ratio (DPR) is currently -62.50%.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on EGY shares. Zacks Research downgraded shares of Vaalco Energy from a “hold” rating to a “strong sell” rating in a research note on Wednesday, March 4th. Weiss Ratings raised shares of Vaalco Energy from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, January 13th. Loop Capital set a $7.30 price objective on shares of Vaalco Energy in a report on Friday, January 16th. Finally, Wall Street Zen raised Vaalco Energy from a “sell” rating to a “hold” rating in a research report on Sunday, January 18th. One investment analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Vaalco Energy has a consensus rating of “Reduce” and an average price target of $7.30.

Institutional Investors Weigh In On Vaalco Energy

A number of large investors have recently made changes to their positions in the company. Virtus Investment Advisers LLC purchased a new stake in shares of Vaalco Energy during the 4th quarter valued at about $170,000. Wellington Management Group LLP purchased a new position in shares of Vaalco Energy in the fourth quarter worth approximately $141,000. Oxford Asset Management LLP purchased a new position in shares of Vaalco Energy in the fourth quarter worth approximately $84,000. Price T Rowe Associates Inc. MD grew its position in Vaalco Energy by 40.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 147,666 shares of the energy company’s stock valued at $538,000 after buying an additional 42,177 shares during the period. Finally, Mangrove Partners IM LLC bought a new stake in Vaalco Energy during the fourth quarter valued at approximately $127,000. 50.32% of the stock is currently owned by institutional investors.

Vaalco Energy Trading Down 4.5%

The firm has a market capitalization of $561.43 million, a PE ratio of -13.46 and a beta of 0.21. The company has a quick ratio of 0.99, a current ratio of 1.05 and a debt-to-equity ratio of 0.24. The stock’s fifty day simple moving average is $4.81 and its 200 day simple moving average is $4.14.

Vaalco Energy Company Profile

Vaalco Energy, Inc is an independent energy company principally engaged in the exploration, development and production of crude oil and natural gas. Headquartered in Houston, Texas, Vaalco concentrates on offshore assets in West Africa, with a strategic emphasis on maintaining and optimizing cash-flow–generating properties. Founded in the mid-1980s, the company has built its reputation by focusing on high-impact drilling prospects and extending the productive life of its core fields through targeted infill wells and enhanced recovery techniques.

The company’s primary producing asset is the Etame Marin block offshore Gabon, where Vaalco holds a majority interest and serves as operator.