Marathon Petroleum (NYSE:MPC) Shares Down 3.3% - Should You Sell?

Key Points

• Marathon Petroleum shares fell 3.3% to $430.08, with trading volume 16% above average. Despite the decline, analysts maintain a “Moderate Buy” consensus rating, with recent price targets ranging from $445 to $510.
• The company reported strong quarterly results, posting $17.73 in EPS versus the $14.27 consensus estimate and $51.99 billion in revenue, up 53.5% year over year.
• Marathon Petroleum declared a quarterly dividend of $1.00 per share, equivalent to an annualized $4.00 payout and a 0.9% yield. Insiders sold more than $7.78 million worth of shares over the past three months, while institutional investors own 76.77% of the stock.

Marathon Petroleum Corporation (NYSE:MPC - Get Free Report)'s share price fell 3.3% on Monday. The company traded as low as $428.72 and last traded at $430.08. 2,857,778 shares were traded during mid-day trading, an increase of 16% from the average session volume of 2,465,057 shares. The stock had previously closed at $444.73.

Analysts Set New Price Targets

MPC has been the subject of several recent analyst reports. Barclays boosted their price objective on shares of Marathon Petroleum from $321.00 to $488.00 and gave the stock an "overweight" rating in a research report on Monday, October 12th. TD Cowen upped their target price on Marathon Petroleum from $450.00 to $478.00 and gave the company a "buy" rating in a research report on Thursday, October 22nd. Zacks Research upgraded Marathon Petroleum from a "hold" rating to a "strong-buy" rating in a research note on Friday, September 4th. Raymond James Financial lifted their price target on Marathon Petroleum from $350.00 to $445.00 and gave the stock an "outperform" rating in a research report on Monday, September 14th. Finally, UBS Group set a $510.00 price objective on Marathon Petroleum in a research note on Friday, October 9th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, Marathon Petroleum currently has a consensus rating of "Moderate Buy" and an average price target of $424.31.

Marathon Petroleum Stock Down 3.3%

The company has a market capitalization of $125.56 billion, a price-to-earnings ratio of 14.78, a PEG ratio of 0.12 and a beta of 0.53. The firm's 50 day simple moving average is $417.80 and its 200-day simple moving average is $289.77. The company has a current ratio of 1.25, a quick ratio of 0.89 and a debt-to-equity ratio of 1.19.

Marathon Petroleum (NYSE:MPC - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The oil and gas company reported $17.73 earnings per share (EPS) for the quarter, topping the consensus estimate of $14.27 by $3.46. The firm had revenue of $51.99 billion during the quarter, compared to analysts' expectations of $40.87 billion. Marathon Petroleum had a net margin of 5.48% and a return on equity of 31.96%. The firm's revenue for the quarter was up 53.5% on a year-over-year basis. During the same period in the prior year, the company posted $3.96 earnings per share. On average, sell-side analysts anticipate that Marathon Petroleum Corporation will post 64.12 EPS for the current fiscal year.

Marathon Petroleum Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Wednesday, November 18th will be issued a dividend of $1.00 per share. The ex-dividend date of this dividend is Wednesday, November 18th. This represents a $4.00 dividend on an annualized basis and a yield of 0.9%. Marathon Petroleum's payout ratio is currently 13.75%.

Insider Buying and Selling at Marathon Petroleum

In other Marathon Petroleum news, insider Molly Benson sold 17,196 shares of the stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $358.57, for a total value of $6,165,969.72. Following the completion of the transaction, the insider directly 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 ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, SVP Shawn Lyon sold 2,500 shares of Marathon Petroleum stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $350.00, for a total transaction of $875,000.00. Following the sale, the senior vice president owned 12,619 shares of the company's stock, valued at approximately $4,416,650. The trade was a 16.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 21,691 shares of company stock valued at $7,780,127. Corporate insiders own 0.17% of the company's stock.

Institutional Trading of Marathon Petroleum

A number of institutional investors have recently bought and sold shares of MPC. Solstein Capital LLC acquired a new stake in Marathon Petroleum in the 2nd quarter valued at about $26,000. Caitlin John LLC acquired a new position in shares of Marathon Petroleum during the 2nd quarter worth approximately $26,000. Bell Investment Advisors Inc purchased a new stake in Marathon Petroleum in the 2nd quarter valued at approximately $27,000. Main Street Group LTD acquired a new stake in Marathon Petroleum during the 1st quarter valued at $35,000. Finally, Cetera Trust Company N.A acquired a new stake in Marathon Petroleum during the 2nd quarter valued at $35,000. 76.77% of the stock is currently owned by hedge funds and other institutional investors.

About Marathon Petroleum

Marathon Petroleum Corporation NYSE: MPC is an American downstream energy company engaged in refining, marketing, and transporting petroleum products. Its operations include converting crude oil into gasoline, diesel, jet fuel, asphalt, propane, and other refined products used by transportation, industrial, and commercial customers.

The company markets fuel under the Marathon brand and supplies products to independent marketers, commercial businesses, and other wholesale customers. Marathon Petroleum also owns a general-partner interest and significant limited-partner interest in MPLX Inc, a midstream company that operates pipelines, storage facilities, terminals, and gathering and processing assets supporting the movement of crude oil and natural gas liquids.

Marathon Petroleum's refining and midstream activities are concentrated in the United States, with assets serving regions across the Midwest, Gulf Coast, and West Coast.

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