Marathon Petroleum Corporation (NYSE:MPC) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Wall Street sentiment is bullish on Marathon Petroleum, with 19 broker ratings averaging a “Moderate Buy” and a consensus 12-month price target of about $259.44.
• The company beat Q1 expectations, reporting EPS of $1.65 versus the $0.74 estimate, and revenue of $34.2 billion versus expectations of $33.42 billion. Management also boosted its stock buyback program, signaling confidence and a continued focus on shareholder returns.
• Marathon Petroleum also declared a quarterly dividend of $1.00 per share, equal to a $4.00 annualized payout and a 1.5% yield. The dividend is payable June 10, with the ex-dividend date set for May 20.

Marathon Petroleum Corporation (NYSE:MPC - Get Free Report) has been given an average recommendation of "Moderate Buy" by the nineteen ratings firms that are covering the stock, MarketBeat Ratings reports. Eight research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has given a strong buy rating to the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $259.4375.

Several equities research analysts have issued reports on MPC shares. Mizuho boosted their price objective on shares of Marathon Petroleum from $205.00 to $224.00 and gave the company a "neutral" rating in a research report on Tuesday, March 17th. The Goldman Sachs Group boosted their price target on shares of Marathon Petroleum from $264.00 to $291.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Wells Fargo & Company boosted their price target on shares of Marathon Petroleum to $335.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Piper Sandler boosted their price target on shares of Marathon Petroleum from $197.00 to $228.00 and gave the company a "neutral" rating in a report on Thursday, April 9th. Finally, Raymond James Financial restated an "outperform" rating on shares of Marathon Petroleum in a report on Wednesday, May 6th.

Key Stories Impacting Marathon Petroleum

Here are the key news stories impacting Marathon Petroleum this week:

• Positive Sentiment: Marathon Petroleum’s Q1 results beat expectations, and the company boosted its stock buyback program, reinforcing the view that management is returning more cash to shareholders. Marathon Petroleum (MPC) Exceeds Estimates in Q1, Boosts Stock Buyback Program
• Positive Sentiment: Several articles highlighted MPC as a top momentum stock and a name showing relative price strength, which can attract momentum investors and support the stock’s recent rise. Why Marathon Petroleum (MPC) is a Top Momentum Stock for the Long-Term
• Positive Sentiment: Recent valuation coverage focused on MPC’s strong multi-period share gains, with the stock up sharply over the past month, quarter, and year-to-date, reinforcing bullish sentiment around the name. A Look At Marathon Petroleum (MPC) Valuation After Strong Multi Period Share Price Gains
• Neutral Sentiment: Marathon Petroleum also appeared in a news item about Aquanta Vision’s pre-seed funding for methane leak detection, where MPC was listed as a participant through its venture/technology arm. This is strategically interesting but not likely a near-term stock driver. Aquanta Vision Secures Pre-Seed Funding to Advance Real-Time Methane Leak Detection

Marathon Petroleum Price Performance

Marathon Petroleum stock opened at $262.86 on Wednesday. The stock has a market cap of $76.74 billion, a price-to-earnings ratio of 17.16, a price-to-earnings-growth ratio of 0.34 and a beta of 0.53. The company has a debt-to-equity ratio of 1.31, a current ratio of 1.18 and a quick ratio of 0.73. Marathon Petroleum has a 1 year low of $154.65 and a 1 year high of $263.50. The firm has a 50-day moving average of $236.25 and a two-hundred day moving average of $204.45.

Marathon Petroleum (NYSE:MPC - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The oil and gas company reported $1.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.74 by $0.91. The company had revenue of $34.20 billion during the quarter, compared to analysts' expectations of $33.42 billion. Marathon Petroleum had a net margin of 3.36% and a return on equity of 16.22%. The firm's quarterly revenue was up 8.5% on a year-over-year basis. During the same period in the previous year, the company earned ($0.24) EPS. On average, research analysts forecast that Marathon Petroleum will post 29.67 earnings per share for the current year.

Marathon Petroleum Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Wednesday, May 20th will be issued a $1.00 dividend. The ex-dividend date is Wednesday, May 20th. This represents a $4.00 annualized dividend and a dividend yield of 1.5%. Marathon Petroleum's payout ratio is currently 26.11%.

Insider Activity at Marathon Petroleum

In other news, insider Ricky D. Hessling sold 1,626 shares of the business's stock in a transaction dated Friday, March 13th. The shares were sold at an average price of $228.18, for a total value of $371,020.68. Following the completion of the sale, the insider owned 7,525 shares in the company, valued at approximately $1,717,054.50. The trade was a 17.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In the last three months, insiders have sold 4,473 shares of company stock valued at $1,015,428. Insiders own 0.17% of the company's stock.

Institutional Investors Weigh In On Marathon Petroleum

Several large investors have recently modified their holdings of the business. Navalign LLC bought a new position in shares of Marathon Petroleum during the 4th quarter worth approximately $30,000. Kohmann Bosshard Financial Services LLC bought a new position in shares of Marathon Petroleum during the 4th quarter worth approximately $31,000. Berbice Capital Management LLC raised its stake in shares of Marathon Petroleum by 100.0% during the 4th quarter. Berbice Capital Management LLC now owns 200 shares of the oil and gas company's stock worth $33,000 after acquiring an additional 100 shares in the last quarter. WFA of San Diego LLC bought a new position in shares of Marathon Petroleum during the 2nd quarter worth approximately $33,000. Finally, Ares Financial Consulting LLC bought a new position in shares of Marathon Petroleum during the 4th quarter worth approximately $34,000. Institutional investors own 76.77% of the company's stock.

About Marathon Petroleum

Marathon Petroleum Corporation NYSE: MPC is a U.S.-based downstream energy company engaged principally in the refining, marketing, supply and transportation of petroleum products. The company was formed through a spin-off from Marathon Oil in 2011 and operates an integrated system of refining and logistics assets that support the production and distribution of transportation fuels and other refined petroleum products.

Marathon Petroleum's operations include refining crude oil into gasoline, diesel, jet fuel, asphalt and other specialty products, as well as managing the distribution and storage infrastructure needed to move those products to market.

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