Marathon Petroleum (NYSE:MPC) Stock Jumps 2.8% - Should You Buy?

Key Points

• Marathon Petroleum shares rose 2.8% to about $470, although trading volume was 41% below its average. The stock is trading well above its 50-day and 200-day moving averages.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $424.31. Recent targets range from $330 to $518, reflecting differing views on the stock’s valuation.
• The company reported quarterly EPS of $17.73, beating estimates by $3.46, while revenue increased 53.5% year over year to $51.99 billion. Marathon also pays a $1.00 quarterly dividend, equivalent to a 0.9% yield.

Marathon Petroleum Corporation (NYSE:MPC - Get Free Report)'s stock price shot up 2.8% on Monday. The stock traded as high as $478.37 and last traded at $470.0170. 1,454,698 shares changed hands during trading, a decline of 41% from the average session volume of 2,462,566 shares. The stock had previously closed at $457.22.

Analysts Set New Price Targets

A number of research analysts have commented on the company. Jefferies Financial Group reaffirmed a "hold" rating and issued a $433.00 price objective on shares of Marathon Petroleum in a report on Sunday, October 11th. Piper Sandler raised their price target on shares of Marathon Petroleum from $344.00 to $462.00 and gave the stock an "overweight" rating in a research report on Thursday, September 3rd. Citigroup lifted their price objective on shares of Marathon Petroleum from $318.00 to $518.00 and gave the stock a "neutral" rating in a research note on Tuesday, October 13th. 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 research report on Friday, October 2nd. Finally, Evercore set a $330.00 target price on shares of Marathon Petroleum in a report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $424.31.

Marathon Petroleum Trading Up 2.8%

The company has a debt-to-equity ratio of 1.19, a quick ratio of 0.89 and a current ratio of 1.25. The company has a market capitalization of $137.22 billion, a price-to-earnings ratio of 16.16, a price-to-earnings-growth ratio of 0.12 and a beta of 0.54. The firm has a fifty day moving average price of $410.05 and a 200-day moving average price of $317.33.

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 EPS for the quarter, beating analysts' consensus estimates of $14.27 by $3.46. The business had revenue of $51.99 billion during the quarter, compared to the consensus estimate of $40.87 billion. Marathon Petroleum had a return on equity of 31.96% and a net margin of 5.48%. Marathon Petroleum's revenue for the quarter was up 53.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.96 earnings per share. As a group, equities analysts anticipate that Marathon Petroleum Corporation will post 64.12 EPS for the current year.

Marathon Petroleum Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Wednesday, August 19th were paid a dividend of $1.00 per share. The ex-dividend date was Wednesday, August 19th. This represents a $4.00 annualized dividend and a yield of 0.9%. Marathon Petroleum's dividend payout ratio is presently 13.75%.

Insider Buying and Selling at Marathon Petroleum

In other news, insider Molly Benson sold 17,196 shares of Marathon Petroleum stock in a transaction on Monday, August 17th. The stock was sold at an average price of $358.57, for a total value of $6,165,969.72. Following the transaction, the insider owned 30,334 shares in the company, valued at approximately $10,876,862.38. This trade represents a 36.18% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, SVP Shawn Lyon sold 1,000 shares of the business's stock in a transaction on Monday, August 31st. The stock was sold at an average price of $375.75, for a total value of $375,750.00. Following the transaction, the senior vice president directly owned 11,194 shares of the company's stock, valued at $4,206,145.50. This trade represents a 8.20% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 21,691 shares of company stock valued at $7,780,127. 0.17% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Solstein Capital LLC acquired a new position in Marathon Petroleum during the 2nd quarter worth approximately $26,000. Caitlin John LLC bought a new stake in shares of Marathon Petroleum during the second quarter worth $26,000. Bell Investment Advisors Inc acquired a new position in shares of Marathon Petroleum during the second quarter worth $27,000. Main Street Group LTD acquired a new position in shares of Marathon Petroleum during the first quarter worth $35,000. Finally, Cetera Trust Company N.A acquired a new position in shares of Marathon Petroleum during the second quarter worth $35,000. Institutional investors and hedge funds own 76.77% of the company's stock.

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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