Zacks Research Downgrades Mplx (NYSE:MPLX) to Strong Sell

Key Points

• Zacks Research downgraded Mplx from “hold” to “strong sell,” even as the broader analyst view remains more positive with a consensus rating of “moderate buy.”
• MPLX shares fell 4.0% and opened at $54.02, with the stock trading below its recent 50-day average and near the middle of its 52-week range.
• Recent earnings missed expectations: MPLX reported $0.90 EPS versus the $1.05 estimate, and revenue of $2.86 billion also came in below forecasts, though the company remains profitable with strong margins.

Mplx (NYSE:MPLX - Get Free Report) was downgraded by stock analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Thursday,Zacks.com reports.

Several other research analysts have also issued reports on the company. Citigroup boosted their target price on Mplx from $54.00 to $55.00 and gave the company a "neutral" rating in a research report on Tuesday, February 10th. Weiss Ratings restated a "buy (a)" rating on shares of Mplx in a research report on Monday. JPMorgan Chase & Co. boosted their target price on Mplx from $58.00 to $60.00 and gave the company a "neutral" rating in a research report on Tuesday, March 10th. UBS Group boosted their target price on Mplx from $64.00 to $73.00 and gave the company a "buy" rating in a research report on Monday, March 16th. Finally, Barclays dropped their target price on Mplx from $59.00 to $58.00 and set an "overweight" rating for the company in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Mplx has a consensus rating of "Moderate Buy" and a consensus price target of $61.70.

Mplx Stock Down 4.0%

Shares of NYSE:MPLX opened at $54.02 on Thursday. Mplx has a 1 year low of $47.80 and a 1 year high of $59.98. The business has a 50 day simple moving average of $57.03 and a two-hundred day simple moving average of $55.10. The firm has a market capitalization of $54.84 billion, a PE ratio of 11.69, a price-to-earnings-growth ratio of 5.26 and a beta of 0.49. The company has a debt-to-equity ratio of 1.71, a current ratio of 1.10 and a quick ratio of 1.18.

Mplx (NYSE:MPLX - Get Free Report) last announced its earnings results on Tuesday, May 5th. The pipeline company reported $0.90 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.05 by ($0.15). Mplx had a net margin of 36.38% and a return on equity of 32.74%. The business had revenue of $2.86 billion for the quarter, compared to analysts' expectations of $3.09 billion. During the same quarter last year, the firm earned $1.10 EPS. The firm's quarterly revenue was down 2.8% on a year-over-year basis. On average, equities analysts predict that Mplx will post 4.33 EPS for the current year.

Institutional Trading of Mplx

A number of large investors have recently modified their holdings of the company. PNC Financial Services Group Inc. boosted its holdings in shares of Mplx by 2.6% in the first quarter. PNC Financial Services Group Inc. now owns 117,397 shares of the pipeline company's stock valued at $6,700,000 after purchasing an additional 2,974 shares during the period. Glenview Trust Co lifted its holdings in Mplx by 15.4% during the first quarter. Glenview Trust Co now owns 7,500 shares of the pipeline company's stock worth $428,000 after buying an additional 1,000 shares during the period. One Charles Private Wealth Services LLC lifted its holdings in Mplx by 2.7% during the first quarter. One Charles Private Wealth Services LLC now owns 28,118 shares of the pipeline company's stock worth $1,605,000 after buying an additional 733 shares during the period. Hanover Advisors Inc. purchased a new stake in Mplx during the first quarter worth $219,000. Finally, Parallel Advisors LLC lifted its holdings in Mplx by 10.9% during the first quarter. Parallel Advisors LLC now owns 6,299 shares of the pipeline company's stock worth $359,000 after buying an additional 620 shares during the period. Hedge funds and other institutional investors own 24.25% of the company's stock.

About Mplx

MPLX LP NYSE: MPLX is a midstream master limited partnership that owns, operates and develops energy infrastructure primarily across the United States. The company provides a range of midstream services including the gathering, transportation, storage and distribution of crude oil, refined petroleum products, natural gas and natural gas liquids (NGLs). MPLX also operates processing and fractionation facilities and supplies logistics services that connect producers, refiners and end-use markets.

The partnership's asset base includes pipelines, storage terminals, rail and marine facilities, natural gas processing plants and NGL fractionators.

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