Traders Buy High Volume of Mplx Call Options (NYSE:MPLX)

Key Points

• MPLX call-option volume surged: Traders bought 14,474 call options, about 458% above the average of 2,594. Shares rose 0.2% to $56.90 during Thursday trading.
• The company raised its quarterly dividend from $1.0765 to $1.2111 per share, equivalent to an annualized $4.84 and an 8.5% yield.
• MPLX reported quarterly EPS of $1.15, topping the $1.13 consensus, while revenue of $3.32 billion fell short of estimates. Analysts’ average rating was “Moderate Buy,” with an average price target of $63.30.

Mplx Lp (NYSE:MPLX - Get Free Report) was the target of some unusual options trading on Thursday. Traders acquired 14,474 call options on the company. This represents an increase of approximately 458% compared to the average volume of 2,594 call options.

Mplx Trading Up 0.2%

MPLX traded up $0.13 during midday trading on Thursday, hitting $56.90. 852,709 shares of the company were exchanged, compared to its average volume of 1,681,869. The firm's 50 day moving average price is $58.06 and its 200-day moving average price is $57.27. Mplx has a 1-year low of $51.60 and a 1-year high of $60.95. The firm has a market capitalization of $57.69 billion, a P/E ratio of 13.31, a P/E/G ratio of 5.37 and a beta of 0.48. The company has a quick ratio of 1.47, a current ratio of 1.56 and a debt-to-equity ratio of 1.86.

Mplx (NYSE:MPLX - Get Free Report) last announced its earnings results on Tuesday, November 3rd. The pipeline company reported $1.15 EPS for the quarter, beating the consensus estimate of $1.13 by $0.02. The company had revenue of $3.32 billion for the quarter, compared to analyst estimates of $3.35 billion. Mplx had a return on equity of 30.30% and a net margin of 32.91%. The firm's revenue for the quarter was down .4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.52 EPS. As a group, equities analysts forecast that Mplx will post 4.27 EPS for the current fiscal year.

Mplx Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, November 6th will be given a dividend of $1.2111 per share. The ex-dividend date of this dividend is Friday, November 6th. This represents a $4.84 annualized dividend and a dividend yield of 8.5%. This is a boost from Mplx's previous quarterly dividend of $1.0765. Mplx's payout ratio is 113.08%.

Analyst Ratings Changes

MPLX has been the subject of a number of recent research reports. Stifel Nicolaus started coverage on shares of Mplx in a research report on Thursday, September 10th. They issued a "hold" rating and a $65.00 target price for the company. JPMorgan Chase & Co. started coverage on shares of Mplx in a research report on Tuesday, October 20th. They issued a "neutral" rating and a $62.00 price target for the company. Wells Fargo & Company increased their price target on Mplx from $61.00 to $63.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 5th. Wolfe Research lowered Mplx from an "outperform" rating to a "peer perform" rating in a research note on Wednesday, July 29th. Finally, Barclays dropped their price objective on Mplx from $63.00 to $61.00 and set an "overweight" rating for the company in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $63.30.

Hedge Funds Weigh In On Mplx

Several institutional investors have recently bought and sold shares of MPLX. Energy Income Partners LLC purchased a new stake in shares of Mplx in the second quarter worth $303,072,000. Royal Bank of Canada lifted its position in Mplx by 45.5% in the 1st quarter. Royal Bank of Canada now owns 1,151,905 shares of the pipeline company's stock worth $65,739,000 after buying an additional 360,427 shares during the last quarter. Infrastructure Capital Advisors LLC lifted its position in Mplx by 2.9% in the 1st quarter. Infrastructure Capital Advisors LLC now owns 1,068,251 shares of the pipeline company's stock worth $60,965,000 after buying an additional 30,267 shares during the last quarter. NEOS Investment Management LLC grew its position in Mplx by 45.5% during the second quarter. NEOS Investment Management LLC now owns 486,025 shares of the pipeline company's stock valued at $27,378,000 after acquiring an additional 152,041 shares during the last quarter. Finally, Bollard Group LLC raised its stake in shares of Mplx by 14.8% during the first quarter. Bollard Group LLC now owns 405,728 shares of the pipeline company's stock worth $23,155,000 after acquiring an additional 52,308 shares in the last quarter. Hedge funds and other institutional investors own 24.25% of the company's stock.

About Mplx

MPLX LP is a diversified midstream energy company formed by Marathon Petroleum in 2012. It owns and operates infrastructure that gathers, processes, transports and stores energy products, connecting producers and refiners with customers and markets. The company's assets include natural gas and natural gas liquids gathering and processing facilities, pipelines and fractionation plants, as well as crude oil and refined-product pipelines, storage terminals and inland marine transport operations. Its network serves energy-producing and refining regions across the United States.

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