Murphy USA (NYSE:MUSA) Shares Down 7.5% - Here's Why

Key Points

• Shares down 7.5%: Murphy USA fell to $486.60 on Wednesday (intra-day low $482.41) with only ~100,752 shares traded, about 71% below its average daily volume.
• Analysts have trimmed targets and ratings, leaving a consensus "Hold" and a consensus price target of $447.33, which is materially below the current share price.
• Mixed quarter: Murphy USA beat EPS estimates ($7.53 vs. $6.67) but missed revenue expectations ($4.74B vs. $4.88B), and insiders have been net sellers recently (CEO sold 3,967 shares; 10,919 shares sold over the last 90 days).

Murphy USA Inc. (NYSE:MUSA - Get Free Report) was down 7.5% during trading on Wednesday . The company traded as low as $482.41 and last traded at $486.60. Approximately 100,752 shares traded hands during mid-day trading, a decline of 71% from the average daily volume of 349,700 shares. The stock had previously closed at $525.85.

Analysts Set New Price Targets

Several research firms recently weighed in on MUSA. Stephens decreased their price target on Murphy USA from $475.00 to $450.00 and set an "overweight" rating on the stock in a report on Friday, February 6th. Royal Bank Of Canada cut their price objective on Murphy USA from $467.00 to $445.00 and set a "sector perform" rating on the stock in a research report on Thursday, February 5th. KeyCorp set a $500.00 price objective on Murphy USA in a research report on Thursday, February 5th. Wells Fargo & Company cut their price objective on Murphy USA from $410.00 to $400.00 and set an "equal weight" rating on the stock in a research report on Friday, February 6th. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Murphy USA in a research report on Monday, December 29th. Three investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $447.33.

Murphy USA Stock Performance

The business has a 50 day simple moving average of $434.69 and a 200 day simple moving average of $408.23. The company has a quick ratio of 0.36, a current ratio of 0.80 and a debt-to-equity ratio of 3.47. The company has a market capitalization of $9.08 billion, a PE ratio of 20.20, a PEG ratio of 3.40 and a beta of 0.23.

Murphy USA (NYSE:MUSA - Get Free Report) last released its quarterly earnings results on Wednesday, February 4th. The specialty retailer reported $7.53 EPS for the quarter, beating analysts' consensus estimates of $6.67 by $0.86. Murphy USA had a return on equity of 75.75% and a net margin of 2.43%.The company had revenue of $4.74 billion during the quarter, compared to analysts' expectations of $4.88 billion. During the same period last year, the business posted $6.96 earnings per share. The firm's revenue was up .7% compared to the same quarter last year. Equities research analysts predict that Murphy USA Inc. will post 26.45 EPS for the current fiscal year.

Murphy USA Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 5th. Stockholders of record on Monday, February 23rd were paid a $0.63 dividend. This represents a $2.52 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Monday, February 23rd. Murphy USA's dividend payout ratio (DPR) is presently 10.38%.

Insider Transactions at Murphy USA

In other news, CEO Malynda K. West sold 3,967 shares of the firm's stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $450.00, for a total value of $1,785,150.00. Following the completion of the transaction, the chief executive officer directly owned 117,389 shares in the company, valued at $52,825,050. This trade represents a 3.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP Eric J. Bartko sold 345 shares of the firm's stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $404.84, for a total value of $139,669.80. Following the completion of the transaction, the senior vice president owned 352 shares of the company's stock, valued at approximately $142,503.68. The trade was a 49.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 10,919 shares of company stock valued at $4,490,690. 9.04% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. NewEdge Advisors LLC grew its holdings in Murphy USA by 10.2% during the first quarter. NewEdge Advisors LLC now owns 1,685 shares of the specialty retailer's stock worth $792,000 after acquiring an additional 156 shares during the period. Prudential Financial Inc. lifted its stake in shares of Murphy USA by 29.2% in the 2nd quarter. Prudential Financial Inc. now owns 1,590 shares of the specialty retailer's stock valued at $647,000 after purchasing an additional 359 shares during the period. Fisher Asset Management LLC lifted its stake in shares of Murphy USA by 7.7% in the 2nd quarter. Fisher Asset Management LLC now owns 599 shares of the specialty retailer's stock valued at $244,000 after purchasing an additional 43 shares during the period. EverSource Wealth Advisors LLC lifted its stake in shares of Murphy USA by 423.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 68 shares of the specialty retailer's stock valued at $28,000 after purchasing an additional 55 shares during the period. Finally, Cresset Asset Management LLC acquired a new position in shares of Murphy USA in the 2nd quarter valued at $603,000. 80.81% of the stock is currently owned by hedge funds and other institutional investors.

About Murphy USA

Murphy USA is a leading downstream marketer of gasoline, diesel and convenience store products in the United States. Headquartered in El Dorado, Arkansas, the company was originally established as part of Murphy Oil Corporation and was spun off as an independent public entity in 2013. Since its separation, Murphy USA has focused on retail fueling services and convenience offerings designed to deliver value and convenience to consumers.

The company's primary operations center on two retail formats.

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