60%+ returns in 2025: Here’s how AI-powered stock investing has changed the game
Investing.com - Freedom Capital Markets downgraded Granite Ridge Resources (NYSE:GRNT) from Buy to Hold and lowered its price target to $7.00 from $7.80 on Thursday. The stock currently trades at $5.16, down 16.39% year-to-date, though still showing a 17% upside potential based on analyst consensus targets.
The downgrade follows Granite Ridge’s continued expansion of oil and natural gas production through asset acquisitions in the third quarter of 2025, which has increased the company’s debt burden. InvestingPro data shows the company maintains a debt-to-equity ratio of 0.47, with a current ratio of 1.41 indicating liquid assets still exceed short-term obligations.
Freedom Capital noted that Granite Ridge’s net debt increased by 6% to $288 million for the quarter, with a year-to-date surge of 47.3%, and the company plans further leverage increases in the fourth quarter.
The research firm pointed out that Granite Ridge has maintained its quarterly dividend at $0.11 per share, yielding 8.1% annually at current prices, but these payments are being financed through increased debt.
Freedom Capital questioned the company’s strategy of "aggressively increasing production no matter what" given the high cost of debt and negative trends in the oil market as OPEC+ countries increase production. InvestingPro analysis suggests the stock is slightly undervalued at current levels, with additional ProTips available that highlight the company’s profitability over the last twelve months despite these challenges.
In other recent news, Granite Ridge Resources reported a notable increase in revenue for the third quarter of 2025, reaching $112.7 million compared to $94.1 million in the previous year. Despite the revenue growth, the company maintained its quarterly dividend at $0.11 per share, signaling stability in its shareholder returns. The company also emphasized its improved liquidity position. However, investor concerns were evident as future earnings projections caused some apprehension. There were no significant changes in analyst ratings, with firms maintaining their current outlooks. Granite Ridge Resources continues to focus on financial stability and growth, as evidenced by its latest financial results. These developments reflect the company’s ongoing efforts to navigate market challenges while enhancing its financial performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.