Montauk Renewables (NASDAQ:MNTK) Shares Gap Up on Strong Earnings

Montauk Renewables, Inc. (NASDAQ:MNTK - Get Free Report)'s share price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $5.19, but opened at $5.50. Montauk Renewables shares last traded at $5.13, with a volume of 68,225 shares.

The company reported $0.12 EPS for the quarter, topping the consensus estimate of $0.08 by $0.04. The company had revenue of $65.92 million during the quarter, compared to analysts' expectations of $61.27 million. Montauk Renewables had a net margin of 11.80% and a return on equity of 9.07%.

Wall Street Analysts Forecast Growth

Separately, Scotiabank reissued a "sector perform" rating and set a $6.00 target price (down from $8.00) on shares of Montauk Renewables in a research note on Tuesday, September 3rd.

Hedge Funds Weigh In On Montauk Renewables

A number of large investors have recently made changes to their positions in MNTK. Vanguard Group Inc. grew its position in Montauk Renewables by 1.7% during the first quarter. Vanguard Group Inc. now owns 3,593,935 shares of the company's stock valued at $14,951,000 after purchasing an additional 59,375 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Montauk Renewables by 1.5% during the 2nd quarter. Dimensional Fund Advisors LP now owns 702,914 shares of the company's stock valued at $4,007,000 after acquiring an additional 10,711 shares in the last quarter. Jacobs Levy Equity Management Inc. increased its stake in shares of Montauk Renewables by 81.0% in the first quarter. Jacobs Levy Equity Management Inc. now owns 502,682 shares of the company's stock worth $2,091,000 after acquiring an additional 224,895 shares during the last quarter. SIR Capital Management L.P. raised its holdings in shares of Montauk Renewables by 91.2% during the second quarter. SIR Capital Management L.P. now owns 326,074 shares of the company's stock worth $1,859,000 after acquiring an additional 155,546 shares in the last quarter. Finally, Bank of New York Mellon Corp boosted its position in Montauk Renewables by 3.0% during the second quarter. Bank of New York Mellon Corp now owns 263,278 shares of the company's stock valued at $1,501,000 after purchasing an additional 7,558 shares during the last quarter. Institutional investors and hedge funds own 16.35% of the company's stock.

Montauk Renewables Stock Performance

The firm has a 50-day simple moving average of $5.22 and a two-hundred day simple moving average of $5.10. The company has a current ratio of 1.66, a quick ratio of 1.66 and a debt-to-equity ratio of 0.19. The company has a market capitalization of $590.24 million, a price-to-earnings ratio of 31.69 and a beta of -0.21.

Montauk Renewables Company Profile

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.