Marathon Petroleum Co. (NYSE:MPC) Receives Average Rating of “Moderate Buy” from Analysts

Marathon Petroleum Co. (NYSE:MPC) has earned a consensus rating of “Moderate Buy” from the seventeen ratings firms that are covering the stock, Marketbeat reports. Two research analysts have rated the stock with a sell rating, five have assigned a hold rating, nine have issued a buy rating and one has issued a strong buy rating on the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $185.07.

A number of research analysts have issued reports on the stock. BMO Capital Markets reduced their target price on shares of Marathon Petroleum from $200.00 to $190.00 and set an “outperform” rating for the company in a research note on Friday, October 4th. Piper Sandler decreased their price objective on Marathon Petroleum from $168.00 to $145.00 and set a “neutral” rating for the company in a report on Friday, September 20th. Bank of America initiated coverage on Marathon Petroleum in a research note on Thursday, October 17th. They set a “neutral” rating and a $174.00 target price on the stock. Mizuho decreased their price target on Marathon Petroleum from $198.00 to $193.00 and set a “neutral” rating for the company in a research note on Monday, September 16th. Finally, Barclays cut their price objective on shares of Marathon Petroleum from $168.00 to $159.00 and set an “overweight” rating on the stock in a research note on Monday, November 11th.

Marathon Petroleum Stock Up 0.9 %

Shares of Marathon Petroleum stock opened at $159.38 on Friday. The stock has a market capitalization of $51.22 billion, a price-to-earnings ratio of 12.63, a PEG ratio of 2.74 and a beta of 1.38. Marathon Petroleum has a twelve month low of $140.98 and a twelve month high of $221.11. The company has a current ratio of 1.23, a quick ratio of 0.76 and a debt-to-equity ratio of 0.94. The business’s 50 day simple moving average is $158.92 and its 200-day simple moving average is $167.87.

Marathon Petroleum (NYSE:MPC) last issued its earnings results on Tuesday, November 5th. The oil and gas company reported $1.87 earnings per share for the quarter, topping the consensus estimate of $0.97 by $0.90. Marathon Petroleum had a return on equity of 16.19% and a net margin of 3.15%. The firm had revenue of $35.37 billion for the quarter, compared to analyst estimates of $34.34 billion. During the same period last year, the company earned $8.14 earnings per share. The firm’s revenue for the quarter was down 14.9% on a year-over-year basis. Equities research analysts forecast that Marathon Petroleum will post 9.59 earnings per share for the current year.

Marathon Petroleum Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 10th. Investors of record on Wednesday, November 20th will be paid a $0.91 dividend. This is an increase from Marathon Petroleum’s previous quarterly dividend of $0.83. This represents a $3.64 annualized dividend and a yield of 2.28%. The ex-dividend date is Wednesday, November 20th. Marathon Petroleum’s dividend payout ratio is currently 28.84%.

Marathon Petroleum declared that its Board of Directors has authorized a share repurchase plan on Tuesday, November 5th that allows the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization allows the oil and gas company to reacquire up to 10% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Crewe Advisors LLC acquired a new position in shares of Marathon Petroleum in the first quarter worth $29,000. Gladius Capital Management LP purchased a new position in Marathon Petroleum in the third quarter valued at about $26,000. MeadowBrook Investment Advisors LLC lifted its holdings in shares of 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 valued at $28,000 after buying an additional 80 shares during the last quarter. True Wealth Design LLC grew its stake 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 valued at $28,000 after buying an additional 148 shares in the last quarter. Finally, Harbor Capital Advisors Inc. acquired a new position in Marathon Petroleum in the third quarter worth approximately $30,000. 76.77% of the stock is owned by hedge funds and other institutional investors.

About Marathon Petroleum

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.