Taking on analysts’ expectations and winning: Magellan Midstream Partners L.P. (MMP)

Magellan Midstream Partners L.P. (NYSE: MMP) stock fell -4.22% on Friday to $49.88 against a previous-day closing price of $52.08. With 1.15 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.14 million shares. During the session, the Oil & Gas Midstream company that operates in wider Energy sector, reached to the highest price of $50.86 whereas the lowest price it dropped to was $49.63. The 52-week range on MMP shows that it touched its highest point at $53.75 and its lowest point at $43.58 during that stretch. It currently has a 1-year price target of $54.54. With its current market cap of 10.42 billion, MMP has annualized dividend of $4.15 while the current yield stands at 8.32%. Beta for the stock currently stands at 0.95.

3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free.


Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MMP was down-trending over the past week, with a drop of -2.60%, but this was up by 8.62% over a month. Three-month performance dropped to -2.25% while six-month performance rose 0.12%. The stock gained 4.77% in the past year, while it has gained 7.41% so far this year. A look at the trailing 12-month EPS for MMP yields 3.72 with Next year EPS estimates of 4.74. For the next quarter, that number is 1.10. This implies an EPS growth rate of 21.40% for this year and 2.89% for next year. EPS is expected to grow by 9.70% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 3.80%.

Float and Shares Shorts:

At present, 211.60 million MMP shares are outstanding with a float of 210.86 million shares on hand for trading. On Jul 14, 2022, short shares totaled 8.39 million, which was 3.96% higher than short shares on Jun 14, 2022. In addition to Mr. Aaron L. Milford as the firm’s Pres, CEO & Director of Magellan GP LLC, Mr. Jeffrey L. Holman serves as its Principal Accounting Officer, Exec. VP, CFO & Treasurer.

Institutional Ownership:

Through their ownership of 54.67% of MMP’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 28.09% of MMP, in contrast to 25.40% held by mutual funds. Shares owned by individuals account for 1.22%. As the largest shareholder in MMP with 6.26% of the stake, ALPS Advisors, Inc. holds 13,234,440 shares worth 13,234,440. A second-largest stockholder of MMP, Invesco Advisers, Inc., holds 9,487,668 shares, controlling over 4.49% of the firm’s shares. Janus Henderson Investors US LLC is the third largest shareholder in MMP, holding 7,740,229 shares or 3.66% stake. With a 6.07% stake in MMP, the Alerian MLP ETF is the largest stakeholder. A total of 12,838,617 shares are owned by the mutual fund manager. The Janus Henderson Enterprise Fund, which owns about 3.38% of MMP stock, is the second-largest Mutual Fund holder. It holds 7,147,831 shares valued at 341.38 million. Invesco SteelPath MLP Income Fund holds 1.90% of the stake in MMP, owning 4,009,387 shares worth 191.49 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MMP since 17 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MMP analysts setting a high price target of $64.00 and a low target of $49.00, the average target price over the next 12 months is $55.07. Based on these targets, MMP could surge 28.31% to reach the target high and fall by -1.76% to reach the target low. Reaching the average price target will result in a growth of 10.4% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MMP will report FY 2022 earnings on 02/01/2023. Analysts have provided yearly estimates in a range of $5.59 being high and $4.05 being low. For MMP, this leads to a yearly average estimate of $4.54. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Magellan Midstream Partners L.P. surprised analysts by $0.62 when it reported $1.67 EPS against a consensus estimate of $1.05. The surprise factor in the prior quarter was -$0.26. Based on analyst estimates, the high estimate for the next quarter is $1.23 and the low estimate is $0.96. The average estimate for the next quarter is thus $1.12.

Summary of Insider Activity:

Insiders traded MMP stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 2,325 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 14 over the past year. The total number of shares bought during that period was 189,207 while 88,931 shares were sold.

Leave a Comment

Your email address will not be published.