Marathon Petroleum (NYSE:MPC) Lowered to “Hold” at Zacks Investment Research

Zacks Investment Research downgraded shares of Marathon Petroleum (NYSE:MPCGet Rating) from a buy rating to a hold rating in a research note published on Tuesday, Zacks.com reports. They currently have $102.00 price objective on the oil and gas company’s stock.

According to Zacks, “Marathon Petroleum’s sale of its Speedway retail business for $21 billion provided the downstream operator with a much-needed cash infusion. The deal also comes with a 15-year fuel supply agreement per which Marathon Petroleum will supply 7.7 billion gallons of gasoline per year to 7-Eleven, thus ensuring a steady revenue stream. But while refining fundamentals have certainly brightened from the covid lows, the sector is not out of the woods yet in terms of cash flows that remain anaemic and well below the pre-crisis levels. In particular, the weakness in business travel demand remains a complicating factor. The continued increase in costs and expenses over the past few quarters and execution risks related to renewables foray are other negatives in the Marathon Petroleum story. As such, the stock warrants a cautious stance.”

A number of other equities research analysts have also recently weighed in on the stock. Piper Sandler upped their price objective on shares of Marathon Petroleum from $76.00 to $96.00 and gave the stock a neutral rating in a report on Monday, April 18th. Morgan Stanley increased their price objective on shares of Marathon Petroleum from $90.00 to $115.00 and gave the stock an overweight rating in a research note on Monday, April 18th. Citigroup increased their price objective on shares of Marathon Petroleum from $85.00 to $108.00 and gave the stock a buy rating in a research note on Tuesday, April 26th. Cowen increased their price objective on shares of Marathon Petroleum from $83.00 to $90.00 in a research note on Thursday, February 3rd. Finally, Raymond James increased their price objective on shares of Marathon Petroleum from $98.00 to $110.00 and gave the stock a strong-buy rating in a research note on Friday, April 8th. Four research analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of Buy and an average price target of $98.85.

MPC opened at $97.55 on Tuesday. The company has a fifty day moving average price of $86.15 and a 200-day moving average price of $75.22. The firm has a market capitalization of $52.77 billion, a P/E ratio of 5.79, a price-to-earnings-growth ratio of 0.53 and a beta of 1.77. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.45 and a quick ratio of 1.07. Marathon Petroleum has a one year low of $50.19 and a one year high of $98.29.

Marathon Petroleum (NYSE:MPCGet Rating) last released its quarterly earnings results on Tuesday, May 3rd. The oil and gas company reported $1.49 EPS for the quarter, beating analysts’ consensus estimates of $1.39 by $0.10. Marathon Petroleum had a net margin of 7.93% and a return on equity of 7.60%. The firm had revenue of $38.38 billion during the quarter, compared to analyst estimates of $32.46 billion. During the same period in the previous year, the business earned ($0.20) EPS. The business’s revenue for the quarter was up 67.7% on a year-over-year basis. On average, analysts expect that Marathon Petroleum will post 9.67 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 10th. Shareholders of record on Wednesday, May 18th will be paid a $0.58 dividend. The ex-dividend date is Tuesday, May 17th. This represents a $2.32 dividend on an annualized basis and a dividend yield of 2.38%. Marathon Petroleum’s payout ratio is currently 13.77%.

In other Marathon Petroleum news, Director Kim K.W. Rucker sold 5,000 shares of Marathon Petroleum stock in a transaction on Tuesday, March 29th. The shares were sold at an average price of $83.00, for a total value of $415,000.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.28% of the company’s stock.

Several large investors have recently modified their holdings of the business. Weiss Multi Strategy Advisers LLC grew its stake in shares of Marathon Petroleum by 156.3% in the 1st quarter. Weiss Multi Strategy Advisers LLC now owns 91,561 shares of the oil and gas company’s stock worth $7,828,000 after buying an additional 55,834 shares in the last quarter. Continuum Advisory LLC lifted its holdings in shares of Marathon Petroleum by 25.7% in the 1st quarter. Continuum Advisory LLC now owns 7,500 shares of the oil and gas company’s stock worth $654,000 after acquiring an additional 1,535 shares during the last quarter. Robinson Value Management Ltd. bought a new stake in shares of Marathon Petroleum in the 1st quarter worth about $58,000. Advisors Asset Management Inc. lifted its holdings in shares of Marathon Petroleum by 334.6% in the 1st quarter. Advisors Asset Management Inc. now owns 8,593 shares of the oil and gas company’s stock worth $735,000 after acquiring an additional 6,616 shares during the last quarter. Finally, Mirabella Financial Services LLP bought a new stake in shares of Marathon Petroleum in the 1st quarter worth about $437,000. 80.91% of the stock is owned by institutional investors and hedge funds.

About Marathon Petroleum (Get Rating)

Marathon Petroleum Corporation, together with its subsidiaries, operates as an integrated downstream energy company primarily in the United States. It operates in two segments, Refining & Marketing, and Midstream. 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.

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