Marathon Petroleum Corporation (MPC) looking to reclaim success with recent performance

Marathon Petroleum Corporation (NYSE: MPC) stock jumped 2.62% on Tuesday to $130.21 against a previous-day closing price of $126.88. With 3.78 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.72 million shares. During the session, the Oil & Gas Refining & Marketing company that operates in wider Energy sector, reached to the highest price of $130.74 whereas the lowest price it dropped to was $117.31. The 52-week range on MPC shows that it touched its highest point at $128.82 and its lowest point at $67.49 during that stretch. It currently has a 1-year price target of $137.71. With its current market cap of 59.82 billion, MPC has annualized dividend of $3.00 while the current yield stands at 2.30%. Beta for the stock currently stands at 1.60.

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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 MPC was up-trending over the past week, with a rise of 6.93%, but this was up by 13.67% over a month. Three-month performance surged to 16.91% while six-month performance rose 46.63%. The stock gained 84.17% in the past year, while it has gained 11.87% so far this year. A look at the trailing 12-month EPS for MPC yields 22.78 with Next year EPS estimates of 17.43. For the next quarter, that number is 5.69. This implies an EPS growth rate of 111.90% for this year and -31.30% for next year. EPS is expected to grow by 55.80% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -1.80%.

Float and Shares Shorts:

At present, 491.00 million MPC shares are outstanding with a float of 466.98 million shares on hand for trading. On Oct 13, 2022, short shares totaled 13.3 million, which was 2.67% higher than short shares on Sep 14, 2022. In addition to Mr. Michael J. Hennigan as the firm’s Pres, CEO & Director, Ms. Maryann T. Mannen serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 80.63% of MPC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 41.58% of MPC, in contrast to 37.89% held by mutual funds. Shares owned by individuals account for 1.10%. As the largest shareholder in MPC with 9.35% of the stake, The Vanguard Group, Inc. holds 43,803,665 shares worth 43,803,665. A second-largest stockholder of MPC, SSgA Funds Management, Inc., holds 34,422,852 shares, controlling over 7.35% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in MPC, holding 29,038,386 shares or 6.20% stake. With a 3.04% stake in MPC, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 14,250,461 shares are owned by the mutual fund manager. The SPDR Series – Energy Select Secto, which owns about 2.87% of MPC stock, is the second-largest Mutual Fund holder. It holds 13,426,061 shares valued at 1.56 billion. Vanguard 500 Index Fund holds 2.31% of the stake in MPC, owning 10,833,162 shares worth 1.26 billion.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MPC since 17 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 5 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MPC analysts setting a high price target of $155.00 and a low target of $121.00, the average target price over the next 12 months is $136.75. Based on these targets, MPC could surge 19.04% to reach the target high and fall by -7.07% to reach the target low. Reaching the average price target will result in a growth of 5.02% 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. MPC will report FY 2022 earnings on 01/31/2024. Analysts have provided yearly estimates in a range of $25.98 being high and $24.28 being low. For MPC, this leads to a yearly average estimate of $25.41. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Marathon Petroleum Corporation surprised analysts by $0.73 when it reported $7.81 EPS against a consensus estimate of $7.08. The surprise factor in the prior quarter was $1.70. Based on analyst estimates, the high estimate for the next quarter is $6.23 and the low estimate is $5.18. The average estimate for the next quarter is thus $5.67.

Summary of Insider Activity:

Insiders traded MPC stock several times over the past three months with 24 Buys and 19 Sells. In these transactions, 240,620 shares were bought while 320,331 shares were sold. The number of buy transactions has increased to 89 while that of sell transactions has risen to 60 over the past year. The total number of shares bought during that period was 656,845 while 757,378 shares were sold.

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