Vitesse Energy Shares Upgraded as Analysts Respond to Earnings
Investment firm Wall Street Zen has upgraded shares of Vitesse Energy (NYSE: VTS) from a sell rating to a hold rating, as detailed in a report released on Saturday. This upgrade follows a series of evaluations by other financial analysts concerning the company’s stock performance.
On May 20, 2023, Northland Securities revised its outlook, lowering Vitesse Energy’s rating from “outperform” to “market perform” and setting a price target of $19.00. Earlier, on May 14, Alliance Global Partners initiated coverage of Vitesse Energy, assigning a “buy” rating with a more optimistic price target of $26.00. The recent shifts in analyst ratings reflect varying confidence levels in the company’s market position.
As of now, four investment analysts have categorized the stock with a hold rating, while two have issued buy ratings. According to data from MarketBeat, Vitesse Energy maintains an average rating of “Hold” and an average target price of $26.50.
Strong Quarterly Performance Reported
Vitesse Energy released its quarterly earnings results on August 4, 2023, revealing a robust performance. The company reported earnings per share of $0.60, significantly exceeding analysts’ consensus estimates of $0.10 by $0.50. The company achieved a net margin of 15.12% and a return on equity of 7.25%. Total revenue for the quarter reached $81.76 million, surpassing analyst expectations of $69.78 million.
Sell-side analysts project that Vitesse Energy will report earnings of $1.05 per share for the current fiscal year, indicating a positive outlook for the company moving forward.
Dividend Announcement and Shareholder Impact
In addition to the strong earnings report, Vitesse Energy recently declared a quarterly dividend, scheduled for payment on September 30, 2023. Shareholders who are on record by September 15 will receive a dividend of $0.5625. This announcement translates to an annualized dividend of $2.25, yielding an attractive 9.1% for investors. It is important to note that the dividend payout ratio currently stands at 212.26%, indicating a high level of distribution relative to earnings.
Institutional Investment Trends
Recent trading activity indicates growing interest among institutional investors. SouthState Corp acquired a new stake in Vitesse Energy valued at approximately $25,000 during the first quarter. In the second quarter, Parallel Advisors LLC increased its holdings by 74.7%, owning 1,303 shares worth around $29,000 after purchasing an additional 557 shares.
Similarly, CWM LLC boosted its stake by 138.8%, now holding 1,827 shares valued at $40,000 after acquiring 1,062 shares in the same quarter. Other institutions, including Strs Ohio and Signaturefd LLC, have also significantly increased their positions in Vitesse Energy, reflecting a strong institutional commitment. Currently, institutional investors own 51.63% of the stock.
Vitesse Energy, along with its subsidiaries, is involved in the acquisition, development, and production of non-operated oil and natural gas properties in the United States, particularly in the Williston Basin areas of North Dakota and Montana.
As the market continues to react to Vitesse Energy’s financial performance and strategic developments, investors and analysts alike will be closely monitoring future trends and performance metrics.
