Marathon Petroleum (NYSE:MPC) Shares Climb 4.6% - Still a Buy?

Key Points

• Marathon Petroleum shares rose 4.6% in mid-day trading to about $389.91, on volume 7% above the average session volume.
• Analysts’ consensus rating is “Moderate Buy”, with an average price target of $425.12; recent target changes ranged from $426 at Bank of America to $488 at Barclays.
• The company beat quarterly earnings expectations, reporting EPS of $26.93 versus $25.37 expected, while revenue rose 57.6% year over year to $56.03 billion.

Marathon Petroleum Corporation (NYSE:MPC - Get Free Report)'s share price traded up 4.6% during mid-day trading on Monday. The stock traded as high as $392.06 and last traded at $389.9070. Approximately 2,648,100 shares were traded during mid-day trading, an increase of 7% from the average session volume of 2,478,377 shares. The stock had previously closed at $372.74.

Analysts Set New Price Targets

Several research firms have commented on MPC. Barclays raised their price objective on Marathon Petroleum from $321.00 to $488.00 and gave the stock an "overweight" rating in a report on Monday, October 12th. Bank of America increased their target price on shares of Marathon Petroleum from $410.00 to $426.00 and gave the stock a "neutral" rating in a report on Friday, October 2nd. Weiss Ratings raised Marathon Petroleum from a "buy (b)" rating to a "buy (b+)" rating in a research report on Thursday, October 8th. Mizuho increased their target price on shares of Marathon Petroleum from $304.00 to $457.00 and gave the company a "neutral" rating in a research report on Thursday, October 8th. Finally, Evercore set a $330.00 price target on Marathon Petroleum in a report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $425.12.

Marathon Petroleum Stock Up 4.6%

The company has a quick ratio of 1.09, a current ratio of 1.45 and a debt-to-equity ratio of 1.10. The stock has a market cap of $106.16 billion, a PE ratio of 13.40, a P/E/G ratio of 0.09 and a beta of 0.53. The business has a 50 day moving average price of $421.69 and a 200 day moving average price of $295.35.

Marathon Petroleum (NYSE:MPC - Get Free Report) last announced its quarterly earnings results on Tuesday, November 3rd. The oil and gas company reported $26.93 earnings per share for the quarter, beating the consensus estimate of $25.37 by $1.56. Marathon Petroleum had a return on equity of 55.82% and a net margin of 8.27%. The company had revenue of $56.03 billion during the quarter, compared to analysts' expectations of $46.60 billion. During the same period last year, the business earned $3.01 earnings per share. Marathon Petroleum's quarterly revenue was up 57.6% on a year-over-year basis. Equities research analysts expect that Marathon Petroleum Corporation will post 66.31 EPS for the current fiscal year.

Marathon Petroleum Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Wednesday, November 18th will be paid a $1.00 dividend. This represents a $4.00 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Wednesday, November 18th. Marathon Petroleum's payout ratio is currently 15.13%.

Insider Buying and Selling

In other Marathon Petroleum news, SVP Shawn M. Lyon sold 1,000 shares of Marathon Petroleum stock in a transaction on Monday, August 31st. The shares were sold at an average price of $375.75, for a total value of $375,750.00. Following the completion of the transaction, the senior vice president owned 11,194 shares of the company's stock, valued at approximately $4,206,145.50. The trade was a 8.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Molly R. Benson sold 17,196 shares of the company's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $358.57, for a total transaction of $6,165,969.72. Following the completion of the transaction, the insider owned 30,334 shares of the company's stock, valued at approximately $10,876,862.38. This trade represents a 36.18% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 21,691 shares of company stock valued at $7,780,127. Corporate insiders own 0.17% of the company's stock.

Institutional Investors Weigh In On Marathon Petroleum

A number of institutional investors have recently modified their holdings of the business. RPS Advisory Solutions LLC purchased a new position in Marathon Petroleum during the third quarter worth approximately $223,000. Bessemer Group Inc. grew its holdings in Marathon Petroleum by 1,497.0% in the third quarter. Bessemer Group Inc. now owns 460,498 shares of the oil and gas company's stock valued at $182,091,000 after purchasing an additional 431,662 shares during the period. Capital Asset Managemnet LLC purchased a new stake in shares of Marathon Petroleum in the third quarter valued at approximately $301,000. Hantz Financial Services Inc. raised its stake in shares of Marathon Petroleum by 7.3% during the 3rd quarter. Hantz Financial Services Inc. now owns 4,484 shares of the oil and gas company's stock worth $1,769,000 after buying an additional 305 shares during the period. Finally, Optas LLC raised its stake in shares of Marathon Petroleum by 8.3% during the 3rd quarter. Optas LLC now owns 1,162 shares of the oil and gas company's stock worth $459,000 after buying an additional 89 shares during the period. 76.77% of the stock is currently owned by institutional investors and hedge funds.

Marathon Petroleum Company Profile

Marathon Petroleum Corporation is an integrated downstream energy company focused on refining, marketing, and transporting petroleum products. Its refineries produce fuels and other products, including gasoline, diesel, jet fuel, asphalt, and petrochemical feedstocks.

The company sells transportation fuels and related products through a network of branded locations and other wholesale and commercial channels, primarily in the United States. Its midstream operations, conducted largely through its affiliated partnership MPLX, include gathering, processing, and transporting natural gas and natural gas liquids, as well as storing and transporting crude oil and refined products.

Marathon Petroleum was established as an independent company in 2011, when it was spun off from Marathon Oil Corporation.

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