Here’s Why Matador Resources Company (MTDR) Rose 18% in Q1

TimesSquare Capital Management, an equity investment management company, released its “U.S. Small Cap Growth Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the quarter the fund returned 5.77% (net), compared to a 7.58% return for the Russell 2000 Growth Index. Despite a decline in many equity markets in January, they rebounded over the following two months, resulting in a robust 2024 first quarter. In addition, please check the fund’s top five holdings to know its best picks in 2024.

TimesSquare Capital U.S. Small Cap Growth Strategy highlighted stocks like Matador Resources Company (NYSE:MTDR), in the first quarter 2024 investor letter. Matador Resources Company (NYSE:MTDR) is an independent energy company engages in the exploration, development, production, and acquisition of oil and natural gas resources. The one-month return of Matador Resources Company (NYSE:MTDR) was -5.89%, and its shares gained 13.73% of their value over the last 52 weeks. On June 18, 2024, Matador Resources Company (NYSE:MTDR) stock closed at $57.06 per share with a market capitalization of $7.12 billion.

TimesSquare Capital U.S. Small Cap Growth Strategy stated the following regarding Matador Resources Company (NYSE:MTDR) in its first quarter 2024 investor letter:

"We often see the ebb and flow of the Energy sector tied to underlying commodity prices. In this area, we seek low-cost exploration & production companies with high-yielding acreage or specialized service providers. Matador Resources Company (NYSE:MTDR) is an exploration and production company with operations in the Delaware Basin of Southeast New Mexico and West Texas. Its shares were boosted 18% by a solid fourth quarter with higher-than-expected production volume and lower operating expenses."

A pipeline snaking its way through the hills and valleys of the Delaware Basin.

Matador Resources Company (NYSE:MTDR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Matador Resources Company (NYSE:MTDR) at the end of the first quarter which was 26 in the previous quarter. While we acknowledge the potential of Matador Resources Company (NYSE:MTDR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Matador Resources Company (NYSE:MTDR) and shared the list of stocks whose price targets were recently raised by analysts. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.