Marathon Petroleum (NYSE:MPC) Stock Price Down 4% - Here's What Happened

Key Points

• Marathon Petroleum shares fell 4% to about $377, with trading volume roughly 30% above average; the article says there was no definitive explanation for the decline.
• The company reported quarterly EPS of $26.93, beating estimates of $25.37, and revenue of $56.03 billion; higher refining margins and record refinery utilization supported results.
• MPC agreed to sell two Midwest refineries and related marketing operations for $4.2 billion, planning to reinvest in Gulf Coast assets. Analysts remain broadly positive, with a consensus “Moderate Buy” rating and a $425.12 price target.

Marathon Petroleum Corporation (NYSE:MPC - Get Free Report) dropped 4% on Thursday. The stock traded as low as $376.47 and last traded at $377.0810. Approximately 3,224,756 shares changed hands during mid-day trading, an increase of 30% from the average session volume of 2,474,187 shares. The stock had previously closed at $392.68.

More Marathon Petroleum News

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

• Positive Sentiment: Strong results: MPC reported third-quarter EPS of $26.93, well above estimates, as higher refining margins, favorable fuel spreads and record refinery utilization boosted performance. Coverage also highlighted $11.7 billion in adjusted EBITDA and renewable diesel returning to profitability. MPC Q3 Earnings Beat Estimates on Strong Refining Margins
• Positive Sentiment: Strategic asset sale and reinvestment: MPC agreed to sell its St. Paul Park and Mandan refineries and related marketing business to CVR Energy for $4.2 billion. The company plans to focus investment on the Gulf Coast, targeting higher diesel output, crude throughput and premium gasoline exports. The shift could improve returns, though results will depend on execution and refining-market conditions. Can MPC’s Gulf Coast Focus Fuel Stronger Future Refining Returns?
• Positive Sentiment: Analyst support: Piper Sandler raised its price target to $466 from $462 and maintained an Overweight rating, signaling confidence in MPC’s outlook. Piper Sandler ratings
• Neutral Sentiment: The divestiture reduces MPC’s Midwest refining footprint; proceeds and Gulf Coast investments may create value, but the transition introduces uncertainty around future earnings contributions. Coverage provides no definitive explanation for the recent share decline.

Wall Street Analysts Forecast Growth

A number of research firms have commented on MPC. Piper Sandler boosted their target price on Marathon Petroleum from $462.00 to $466.00 and gave the stock an "overweight" rating in a research report on Thursday. Citigroup raised their price target on Marathon Petroleum from $318.00 to $518.00 and gave the company a "neutral" rating in a research report on Tuesday, October 13th. Wells Fargo & Company lifted their price target on Marathon Petroleum from $560.00 to $564.00 and gave the stock an "overweight" rating in a research note on Wednesday. UBS Group set a $510.00 price objective on shares of Marathon Petroleum in a research report on Friday, October 9th. Finally, Raymond James Financial increased their price objective on shares of Marathon Petroleum from $350.00 to $445.00 and gave the company an "outperform" rating in a research note on Monday, September 14th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, Marathon Petroleum has an average rating of "Moderate Buy" and a consensus price target of $425.12.

Marathon Petroleum Stock Down 4.0%

The company has a market cap of $110.09 billion, a PE ratio of 12.96, a P/E/G ratio of 0.11 and a beta of 0.53. The firm has a 50-day simple moving average of $421.22 and a two-hundred day simple moving average of $293.35. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.25 and a quick ratio of 0.89.

Marathon Petroleum (NYSE:MPC - Get Free Report) last issued its quarterly earnings data on Tuesday, November 3rd. The oil and gas company reported $26.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $25.37 by $1.56. The business had revenue of $56.03 billion for the quarter, compared to the consensus estimate of $46.60 billion. Marathon Petroleum had a return on equity of 58.93% and a net margin of 8.27%. The business's revenue was up 57.6% on a year-over-year basis. During the same period in the prior year, the business earned $3.01 earnings per share. Research analysts anticipate that Marathon Petroleum Corporation will post 64.12 earnings per share for the current fiscal year.

Marathon Petroleum Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Wednesday, November 18th will be issued a $1.00 dividend. This represents a $4.00 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Wednesday, November 18th. Marathon Petroleum's dividend payout ratio is 13.75%.

Insiders Place Their Bets

In other Marathon Petroleum news, SVP Shawn Lyon sold 1,000 shares of the firm'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 sale, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Molly Benson sold 17,196 shares of Marathon Petroleum 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 sale, 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 21,691 shares of company stock valued at $7,780,127 in the last ninety days. Insiders own 0.17% of the company's stock.

Institutional Investors Weigh In On Marathon Petroleum

A number of hedge funds and other institutional investors have recently made changes to their positions in MPC. Focus Financial Network Inc. raised its position in Marathon Petroleum by 2.0% in the third quarter. Focus Financial Network Inc. now owns 1,066 shares of the oil and gas company's stock worth $422,000 after acquiring an additional 21 shares in the last quarter. CRA Financial Services LLC boosted its position in shares of Marathon Petroleum by 1.2% during the 3rd quarter. CRA Financial Services LLC now owns 1,844 shares of the oil and gas company's stock valued at $729,000 after purchasing an additional 21 shares in the last quarter. Avior Wealth Management LLC boosted its position in shares of Marathon Petroleum by 1.0% during the 3rd quarter. Avior Wealth Management LLC now owns 2,130 shares of the oil and gas company's stock valued at $842,000 after purchasing an additional 22 shares in the last quarter. Physician Wealth Advisors Inc. grew its stake in shares of Marathon Petroleum by 7.8% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 316 shares of the oil and gas company's stock worth $125,000 after purchasing an additional 23 shares during the last quarter. Finally, Global Assets Advisory LLC raised its holdings in shares of Marathon Petroleum by 1.6% in the 3rd quarter. Global Assets Advisory LLC now owns 1,442 shares of the oil and gas company's stock worth $630,000 after purchasing an additional 23 shares in the last quarter. Hedge funds and other institutional investors 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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