Murphy USA (NYSE:MUSA) Downgraded by Zacks Research to Strong Sell

Key Points

• Murphy USA has been downgraded by Zacks Research from a "hold" rating to a "strong sell," reflecting decreased investor confidence.
• The stock's price target has been cut by Wells Fargo from $520.00 to $440.00, while Jefferies has reduced it to $350.00, indicating a negative outlook among analysts.
• Despite an earnings beat with $7.36 EPS, Murphy USA's revenue fell short of estimates at $5.01 billion, showing an 8.2% decline year-over-year.

Murphy USA (NYSE:MUSA - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Monday,Zacks.com reports.

A number of other research firms have also issued reports on MUSA. Wells Fargo & Company reduced their target price on shares of Murphy USA from $520.00 to $440.00 and set an "overweight" rating on the stock in a report on Friday, August 1st. Weiss Ratings reiterated a "hold (c)" rating on shares of Murphy USA in a report on Saturday, September 27th. KeyCorp reiterated an "overweight" rating and set a $480.00 price target on shares of Murphy USA in a report on Friday, September 5th. Finally, Jefferies Financial Group cut shares of Murphy USA from a "buy" rating to a "hold" rating and set a $350.00 price target for the company. in a report on Friday, August 1st. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $483.17.

Murphy USA Price Performance

Murphy USA stock opened at $381.78 on Monday. The firm has a market cap of $7.36 billion, a PE ratio of 15.81 and a beta of 0.42. Murphy USA has a 52-week low of $345.23 and a 52-week high of $561.08. The company has a quick ratio of 0.39, a current ratio of 0.80 and a debt-to-equity ratio of 3.20. The company's 50 day moving average is $383.94 and its two-hundred day moving average is $425.81.

Murphy USA (NYSE:MUSA - Get Free Report) last released its earnings results on Wednesday, July 30th. The specialty retailer reported $7.36 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.82 by $0.54. The company had revenue of $5.01 billion for the quarter, compared to analyst estimates of $5.17 billion. Murphy USA had a net margin of 2.52% and a return on equity of 64.63%. The firm's quarterly revenue was down 8.2% on a year-over-year basis. During the same period in the prior year, the business earned $6.92 EPS. On average, research analysts expect that Murphy USA will post 26.45 EPS for the current fiscal year.

Insider Activity

In related news, Director Robert Madison Murphy acquired 5,000 shares of Murphy USA stock in a transaction on Tuesday, August 5th. The stock was purchased at an average cost of $367.01 per share, with a total value of $1,835,050.00. Following the purchase, the director directly owned 389,172 shares in the company, valued at approximately $142,830,015.72. The trade was a 1.30% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Malynda K. West sold 1,859 shares of the stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $386.22, for a total value of $717,982.98. Following the sale, the chief operating officer directly owned 117,389 shares of the company's stock, valued at $45,337,979.58. The trade was a 1.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 10.12% of the company's stock.

Institutional Trading of Murphy USA

Several hedge funds and other institutional investors have recently made changes to their positions in MUSA. Millennium Management LLC raised its position in Murphy USA by 2,594.2% during the first quarter. Millennium Management LLC now owns 142,038 shares of the specialty retailer's stock worth $66,731,000 after acquiring an additional 136,766 shares during the last quarter. OneDigital Investment Advisors LLC purchased a new stake in shares of Murphy USA during the first quarter worth about $241,000. Golden State Wealth Management LLC purchased a new stake in shares of Murphy USA during the first quarter worth about $40,000. Universal Beteiligungs und Servicegesellschaft mbH purchased a new stake in shares of Murphy USA during the first quarter worth about $3,683,000. Finally, SG Americas Securities LLC grew its holdings in shares of Murphy USA by 21.1% during the first quarter. SG Americas Securities LLC now owns 1,210 shares of the specialty retailer's stock worth $568,000 after buying an additional 211 shares in the last quarter. Institutional investors and hedge funds own 80.81% of the company's stock.

About Murphy USA

Murphy USA Inc engages in marketing of retail motor fuel products and convenience merchandise. The company operates retail stores under the Murphy USA, Murphy Express, and QuickChek brands, as well as operates non-fuel convenience stores. It operates retail gasoline stores principally in the Southeast, Southwest, and Midwest United States.

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