Montauk Renewables (NASDAQ:MNTK) Shares Gap Up After Better-Than-Expected Earnings

Montauk Renewables, Inc. (NASDAQ:MNTK)’s stock price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $4.20, but opened at $4.39. Montauk Renewables shares last traded at $4.67, with a volume of 126,447 shares.

The company reported $0.01 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.02) by $0.03. The firm had revenue of $38.79 million during the quarter. Montauk Renewables had a return on equity of 6.32% and a net margin of 8.55%. During the same quarter in the previous year, the company posted ($0.03) EPS.

Wall Street Analyst Weigh In

MNTK has been the topic of several research reports. Scotiabank dropped their price target on Montauk Renewables from $9.00 to $8.00 and set a “sector outperform” rating on the stock in a research report on Thursday, April 11th. TheStreet lowered Montauk Renewables from a “c-” rating to a “d+” rating in a report on Wednesday, March 6th. Finally, B. Riley cut their price objective on Montauk Renewables from $7.00 to $6.00 and set a “neutral” rating for the company in a research report on Tuesday. Three equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $7.75.

Institutional Trading of Montauk Renewables

Several large investors have recently made changes to their positions in MNTK. C M Bidwell & Associates Ltd. purchased a new position in Montauk Renewables in the 3rd quarter valued at approximately $35,000. BI Asset Management Fondsmaeglerselskab A S grew its holdings in Montauk Renewables by 32.3% during the 4th quarter. BI Asset Management Fondsmaeglerselskab A S now owns 8,507 shares of the company’s stock valued at $76,000 after purchasing an additional 2,079 shares during the last quarter. Orion Portfolio Solutions LLC purchased a new stake in shares of Montauk Renewables in the 3rd quarter worth approximately $99,000. Quadrature Capital Ltd acquired a new stake in shares of Montauk Renewables in the fourth quarter worth $99,000. Finally, Strs Ohio purchased a new position in Montauk Renewables during the third quarter valued at $144,000. 16.35% of the stock is currently owned by institutional investors and hedge funds.

Montauk Renewables Trading Up 7.1 %

The company’s fifty day simple moving average is $4.21 and its 200-day simple moving average is $6.86. The company has a debt-to-equity ratio of 0.22, a current ratio of 3.07 and a quick ratio of 3.07. The firm has a market capitalization of $646.29 million, a PE ratio of 41.28 and a beta of -0.40.

About Montauk Renewables

Montauk Renewables, Inc, a renewable energy company, engages in recovery and processing of biogas from landfills and other non-fossil fuel sources. It operates in two segments, Renewable Natural Gas and Renewable Electricity Generation. The company develops, owns, and operates renewable natural gas (RNG) projects that captures methane and prevents it from being released into the atmosphere by converting it into either RNG or electrical power for the electrical grid.