Marathon Petroleum (NYSE:MPC) Stock Price Up 2.4% - Still a Buy?

Key Points

• MPC shares rose 2.4% to about $412.62, despite trading volume running 20% below its average.
• The company beat quarterly earnings and revenue estimates, with EPS of $26.93 versus $25.37 expected and revenue up 57.6% year over year. It also returned $3.3 billion to shareholders, authorized $5 billion in additional buybacks, and raised its dividend 10%.
• Analysts’ consensus rating is Moderate Buy, with a $425.12 price target, though Mizuho recently cut its target and weaker jet-fuel margins and valuation concerns remain risks.

Marathon Petroleum Corporation (NYSE:MPC - Get Free Report)'s stock price shot up 2.4% during trading on Thursday. The company traded as high as $417.79 and last traded at $412.6190. 1,984,182 shares traded hands during mid-day trading, a decline of 20% from the average daily volume of 2,472,076 shares. The stock had previously closed at $402.84.

Key Marathon Petroleum News

Here's some of the latest news about MPC:

• Positive Sentiment: Investors are also weighing substantial capital returns: MPC returned $3.3 billion to shareholders in the quarter, authorized another $5 billion in buybacks, and raised its quarterly dividend by 10%. Its planned $4.2 billion sale of the St. Paul Park and Mandan refineries could free up funds for reinvestment, particularly along the Gulf Coast. Article: Marathon Petroleum Rises on Q3 Results and Asset Sale
• Neutral Sentiment: Mizuho lowered its price target to $440 from $457, a more cautious revision, though the new target remains above the share price cited in the background. Article: Mizuho Adjusts Price Target
• Negative Sentiment: Weaker jet-fuel margins were a partial offset to the strong quarter. Commentary also raises the question of whether MPC’s large share-price gains have outpaced the cash flows supporting its valuation. Article: Is Marathon Petroleum Too Pricey?

Analysts Set New Price Targets

Several research firms have issued reports on MPC. Jefferies Financial Group restated a "hold" rating and set a $433.00 price target on shares of Marathon Petroleum in a research report on Sunday, October 11th. Zacks Research upgraded Marathon Petroleum from a "hold" rating to a "strong-buy" rating in a research report on Friday, September 4th. Mizuho increased their target price on shares of Marathon Petroleum from $304.00 to $457.00 and gave the stock a "neutral" rating in a report on Thursday, October 8th. Citigroup lifted their price target on shares of Marathon Petroleum from $318.00 to $518.00 and gave the company a "neutral" rating in a report on Tuesday, October 13th. Finally, Evercore set a $330.00 price objective on Marathon Petroleum in a research 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 issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $425.12.

Marathon Petroleum Stock Performance

The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.09 and a current ratio of 1.45. The stock has a market capitalization of $112.35 billion, a P/E ratio of 14.18, a PEG ratio of 0.10 and a beta of 0.53. The business has a 50-day moving average price of $422.83 and a 200 day moving average price of $298.62.

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

Marathon Petroleum Dividend Announcement

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

Insider Buying and Selling

In related news, VP Erin M. Brzezinski sold 570 shares of the company's stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $362.79, for a total value of $206,790.30. Following the transaction, the vice president owned 1,576 shares in the company, valued at $571,757.04. The trade was a 26.56% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, 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 transaction of $6,165,969.72. Following the sale, the insider directly owned 30,334 shares in the company, valued at $10,876,862.38. This trade represents a 36.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 19,191 shares of company stock worth $6,905,127 in the last quarter. Corporate insiders own 0.17% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. AlphaGrep UK Ltd purchased a new stake in Marathon Petroleum during the 3rd quarter valued at $970,000. Adapt Wealth Advisors LLC bought a new stake in shares of Marathon Petroleum in the 3rd quarter worth $274,000. Meeder Advisory Services Inc. raised its stake in shares of Marathon Petroleum by 7.5% in the third quarter. Meeder Advisory Services Inc. now owns 13,394 shares of the oil and gas company's stock worth $5,296,000 after purchasing an additional 932 shares during the last quarter. Benjamin Edwards Inc. raised its stake in shares of Marathon Petroleum by 31.8% in the third quarter. Benjamin Edwards Inc. now owns 8,296 shares of the oil and gas company's stock worth $3,281,000 after purchasing an additional 2,003 shares during the last quarter. Finally, First Trust Advisors LP lifted its holdings in shares of Marathon Petroleum by 149.1% during the third quarter. First Trust Advisors LP now owns 406,978 shares of the oil and gas company's stock valued at $160,927,000 after purchasing an additional 243,622 shares in the last quarter. Institutional investors own 76.77% of the company's stock.

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.

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