Marathon Petroleum (NYSE:MPC) Stock Price Down 1.8% - Should You Sell?

Key Points

• MPC shares fell 1.8% to about $476.39, despite strong recent operating results, including quarterly EPS of $17.73 versus the $14.27 consensus and revenue growth of 53.5% year over year.
• Analyst sentiment remains broadly positive: Wells Fargo issued a Buy rating, while Barclays, Citigroup, Piper Sandler, UBS and Morgan Stanley raised price targets. MarketBeat’s consensus view is Moderate Buy, though the average target of $417.88 is below the current share price.
• Valuation is the main risk; fair-value estimates near $433 and comparisons with cheaper refiner Delek US suggest limited upside. Insiders have also sold about $7.8 million of stock over the past three months, while the company pays a $4.00 annual dividend yielding roughly 0.8%.

Marathon Petroleum Corporation (NYSE:MPC - Get Free Report)'s share price dropped 1.8% on Thursday. The company traded as low as $469.07 and last traded at $476.3890. Approximately 2,064,371 shares changed hands during mid-day trading, a decline of 17% from the average daily volume of 2,482,019 shares. The stock had previously closed at $484.92.

Key Marathon Petroleum News

Here are the key news stories impacting Marathon Petroleum this week:

• Positive Sentiment: Wells Fargo issued a Buy rating on MPC, adding to bullish sentiment around the refiner’s earnings outlook. Wells Fargo Issues a Buy Rating on Marathon Petroleum
• Positive Sentiment: Barclays raised its MPC price target to $488, while Citigroup lifted its target from $318 to $518. The higher targets reflect improved assumptions for refining margins and earnings potential, although Citi retained a Neutral rating. Barclays Raises Marathon Petroleum Stock Target
• Positive Sentiment: Recent research characterizes MPC as a relatively lower-volatility energy stock and a potential hedge against diesel-market weakness. Elevated oil prices, geopolitical uncertainty and stronger refining margins are supporting investor interest. Marathon Petroleum: A Solid Hedge Versus Diesel's Damage
• Neutral Sentiment: A comparison with Delek US suggests both refiners are benefiting from better margins and stronger earnings, but analysts view Delek as more attractive because of its lower valuation and stronger earnings-estimate revisions. This could limit incremental buying in MPC. Marathon Versus Delek US
• Negative Sentiment: Valuation is becoming a concern after MPC’s substantial multi-year advance. Fair-value estimates were raised to roughly $433, but that remains below the recent market level, reinforcing questions about whether future cash flow can justify the share price. Can Marathon Petroleum Still Justify Its Price on Cash Flow?

Analyst Ratings Changes

Several equities research analysts have commented on the company. Piper Sandler boosted their price objective on Marathon Petroleum from $344.00 to $462.00 and gave the stock an "overweight" rating in a research note on Thursday, September 3rd. Citigroup raised their target price on Marathon Petroleum from $318.00 to $518.00 and gave the company a "neutral" rating in a research report on Tuesday. Jefferies Financial Group reaffirmed a "hold" rating and issued a $433.00 price target on shares of Marathon Petroleum in a research note on Sunday. UBS Group set a $510.00 price target on Marathon Petroleum in a research report on Friday, October 9th. Finally, Morgan Stanley increased their price objective on Marathon Petroleum from $265.00 to $453.00 and gave the company an "overweight" rating in a research note on Monday, September 14th. One equities research 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's stock. According to data from MarketBeat.com, Marathon Petroleum presently has a consensus rating of "Moderate Buy" and an average price target of $417.88.

Marathon Petroleum Stock Performance

The company has a market cap of $139.08 billion, a PE ratio of 16.38, a PEG ratio of 0.15 and a beta of 0.54. 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 firm's 50 day moving average is $390.48 and its 200-day moving average is $306.16.

Marathon Petroleum (NYSE:MPC - Get Free Report) last released its earnings results on Tuesday, August 4th. The oil and gas company reported $17.73 earnings per share for the quarter, topping analysts' consensus estimates of $14.27 by $3.46. The business had revenue of $51.99 billion for the quarter, compared to analyst estimates of $40.87 billion. Marathon Petroleum had a net margin of 5.48% and a return on equity of 31.96%. The business's revenue was up 53.5% on a year-over-year basis. During the same period last year, the company posted $3.96 EPS. On average, research analysts anticipate that Marathon Petroleum Corporation will post 61.17 earnings per share for the current fiscal year.

Marathon Petroleum Dividend Announcement

The business also recently disclosed 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 of this dividend was Wednesday, August 19th. This represents a $4.00 dividend on an annualized basis and a yield of 0.8%. Marathon Petroleum's payout ratio is 13.75%.

Insiders Place Their Bets

In other news, insider Molly R. Benson sold 17,196 shares of the business's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $358.57, for a total transaction of $6,165,969.72. Following the transaction, the insider owned 30,334 shares of the company's stock, valued at approximately $10,876,862.38. The trade was a 36.18% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Shawn M. Lyon sold 1,000 shares of the company's stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $375.75, for a total transaction of $375,750.00. Following the completion of the sale, the senior vice president directly owned 11,194 shares of the company's stock, valued at $4,206,145.50. This represents a 8.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 21,691 shares of company stock valued at $7,780,127 in the last three months. 0.17% of the stock is currently owned by insiders.

Institutional Trading of Marathon Petroleum

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in shares of Marathon Petroleum in the 2nd quarter worth approximately $6,648,958,000. Bank of New York Mellon Corp acquired a new position in Marathon Petroleum during the second quarter worth about $1,029,611,000. Bank of America Corp DE raised its position in Marathon Petroleum by 1.6% during the first quarter. Bank of America Corp DE now owns 2,595,084 shares of the oil and gas company's stock worth $633,668,000 after acquiring an additional 40,124 shares during the last quarter. Amundi lifted its holdings in shares of Marathon Petroleum by 17.5% in the second quarter. Amundi now owns 2,237,930 shares of the oil and gas company's stock valued at $572,172,000 after purchasing an additional 332,551 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of Marathon Petroleum by 16.7% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,508,489 shares of the oil and gas company's stock valued at $385,675,000 after purchasing an additional 215,686 shares in the last quarter. Institutional investors and hedge funds own 76.77% of the company's stock.

About Marathon Petroleum

Marathon Petroleum Corporation NYSE: MPC is an integrated downstream energy company engaged primarily in refining, marketing and transporting petroleum products. The company converts crude oil and other feedstocks into gasoline, diesel, jet fuel, asphalt, propane and other refined products used by consumers, businesses and industrial customers.

Marathon Petroleum operates refineries and related logistics assets in the United States, with a refining and marketing presence serving markets across the Midwest, Gulf Coast and West Coast.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.