Marathon Petroleum (NYSE:MPC) Reaches New 1-Year Low on Analyst Downgrade

Marathon Petroleum Co. (NYSE:MPC)’s stock price hit a new 52-week low during trading on Monday after Mizuho lowered their price target on the stock from $175.00 to $174.00. Mizuho currently has a neutral rating on the stock. Marathon Petroleum traded as low as $142.53 and last traded at $143.94, with a volume of 392154 shares changing hands. The stock had previously closed at $145.56.

Several other equities research analysts have also commented on the company. Scotiabank dropped their price target on Marathon Petroleum from $191.00 to $170.00 and set a “sector outperform” rating for the company in a research note on Thursday, October 10th. Tudor, Pickering, Holt & Co. lowered shares of Marathon Petroleum from a “buy” rating to a “sell” rating in a report on Monday, September 9th. Wells Fargo & Company lifted their price target on shares of Marathon Petroleum from $183.00 to $186.00 and gave the company an “overweight” rating in a research report on Monday, December 9th. BMO Capital Markets dropped their price objective on shares of Marathon Petroleum from $200.00 to $190.00 and set an “outperform” rating for the company in a research report on Friday, October 4th. Finally, Barclays decreased their price target on shares of Marathon Petroleum from $168.00 to $159.00 and set an “overweight” rating for the company in a research report on Monday, November 11th. Two analysts have rated the stock with a sell rating, six have issued a hold rating, nine have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Marathon Petroleum currently has an average rating of “Moderate Buy” and an average price target of $184.00.

Insider Activity at Marathon Petroleum

In related news, Director Jeffrey C. Campbell purchased 6,000 shares of the business’s stock in a transaction that occurred on Wednesday, December 4th. The shares were purchased at an average cost of $149.61 per share, with a total value of $897,660.00. Following the completion of the acquisition, the director now directly owns 6,090 shares of the company’s stock, valued at approximately $911,124.90. The trade was a 6,666.67 % increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.21% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Gladius Capital Management LP bought a new position in shares of Marathon Petroleum during the third quarter worth about $26,000. MeadowBrook Investment Advisors LLC lifted its holdings in Marathon Petroleum by 88.9% during the 3rd quarter. MeadowBrook Investment Advisors LLC now owns 170 shares of the oil and gas company’s stock worth $28,000 after buying an additional 80 shares during the last quarter. True Wealth Design LLC grew its position in shares of Marathon Petroleum by 672.7% in the 3rd quarter. True Wealth Design LLC now owns 170 shares of the oil and gas company’s stock worth $28,000 after acquiring an additional 148 shares in the last quarter. Harbor Capital Advisors Inc. acquired a new position in shares of Marathon Petroleum in the 3rd quarter worth approximately $30,000. Finally, Darwin Wealth Management LLC bought a new stake in shares of Marathon Petroleum in the 3rd quarter valued at approximately $33,000. 76.77% of the stock is owned by institutional investors and hedge funds.

Marathon Petroleum Stock Performance

The firm has a market capitalization of $44.35 billion, a price-to-earnings ratio of 10.93, a price-to-earnings-growth ratio of 2.67 and a beta of 1.39. The company has a 50-day moving average of $153.96 and a 200-day moving average of $164.40. The company has a current ratio of 1.23, a quick ratio of 0.76 and a debt-to-equity ratio of 0.94.

Marathon Petroleum (NYSE:MPC) last posted its quarterly earnings results on Tuesday, November 5th. The oil and gas company reported $1.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.97 by $0.90. Marathon Petroleum had a net margin of 3.15% and a return on equity of 16.19%. The company had revenue of $35.37 billion for the quarter, compared to the consensus estimate of $34.34 billion. During the same period last year, the firm posted $8.14 EPS. The company’s revenue for the quarter was down 14.9% on a year-over-year basis. On average, equities research analysts forecast that Marathon Petroleum Co. will post 9.5 earnings per share for the current fiscal year.

Marathon Petroleum Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 10th. Stockholders of record on Wednesday, November 20th were issued a dividend of $0.91 per share. The ex-dividend date was Wednesday, November 20th. This is a positive change from Marathon Petroleum’s previous quarterly dividend of $0.83. This represents a $3.64 annualized dividend and a dividend yield of 2.64%. Marathon Petroleum’s dividend payout ratio is 28.84%.

Marathon Petroleum declared that its board has approved a stock repurchase program on Tuesday, November 5th that permits the company to buyback $5.00 billion in shares. This buyback authorization permits the oil and gas company to buy up to 10% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its shares are undervalued.

Marathon Petroleum Company Profile

Marathon Petroleum Corporation, together with its subsidiaries, operates as an integrated downstream energy company primarily in the United States. The company operates through Refining & Marketing, and Midstream segments. The Refining & Marketing segment refines crude oil and other feedstocks at its refineries in the Gulf Coast, Mid-Continent, and West Coast regions of the United States; and purchases refined products and ethanol for resale and distributes refined products, including renewable diesel, through transportation, storage, distribution, and marketing services.