Marathon Petroleum Corporation (MPC) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

Marathon Petroleum Corporation (NYSE: MPC) stock jumped 0.56% on Wednesday to $110.54 against a previous-day closing price of $109.92. With 3.7 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.14 million shares. During the session, the Oil & Gas Refining & Marketing company that operates in wider Energy sector, reached to the highest price of $111.40 whereas the lowest price it dropped to was $109.18. The 52-week range on MPC shows that it touched its highest point at $138.83 and its lowest point at $77.62 during that stretch. It currently has a 1-year price target of $145.87. With its current market cap of 47.19 billion, MPC has annualized dividend of $3.00 while the current yield stands at 2.71%. Beta for the stock currently stands at 1.64.

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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 down-trending over the past week, with a drop of -0.08%, but this was down by -10.24% over a month. Three-month performance dropped to -11.93% while six-month performance fell -8.12%. The stock gained 14.06% in the past year, while it has lost -5.03% so far this year. A look at the trailing 12-month EPS for MPC yields 33.03 with Next year EPS estimates of 13.36. For the next quarter, that number is 4.70. This implies an EPS growth rate of -27.00% for this year and -30.02% for next year.

Float and Shares Shorts:

At present, 444.00 million MPC shares are outstanding with a float of 423.43 million shares on hand for trading. On May 14, 2023, short shares totaled 12.32 million, which was 2.90% higher than short shares on Apr 13, 2023. 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 81.10% of MPC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 43.45% of MPC, in contrast to 31.83% held by mutual funds. Shares owned by individuals account for 1.16%. As the largest shareholder in MPC with 9.10% of the stake, The Vanguard Group, Inc. holds 40,533,823 shares worth 40,533,823. A second-largest stockholder of MPC, SSgA Funds Management, Inc., holds 31,283,361 shares, controlling over 7.02% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in MPC, holding 26,021,940 shares or 5.84% stake. With a 3.11% stake in MPC, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 13,842,056 shares are owned by the mutual fund manager. The RBC Global Resources Fund, which owns about 2.90% of MPC stock, is the second-largest Mutual Fund holder. It holds 12,900,000 shares valued at 1.57 billion. SPDR Series – Energy Select Secto holds 2.84% of the stake in MPC, owning 12,669,416 shares worth 1.55 billion.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, MPC reported revenue of $53.80B and operating income of $7.88B. The EBITDA in the recently reported quarter was $7.85B and diluted EPS was $10.95.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MPC since 0 analysts follow the stock currently. 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 $165.00 and a low target of $124.00, the average target price over the next 12 months is $145.53. Based on these targets, MPC could surge 49.27% to reach the target high and rise by 12.18% to reach the target low. Reaching the average price target will result in a growth of 31.65% 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.

Summary of Insider Activity:

Insiders traded MPC stock several times over the past three months with 27 Buys and 30 Sells. In these transactions, 164,764 shares were bought while 187,803 shares were sold. The number of buy transactions has increased to 90 while that of sell transactions has risen to 65 over the past year. The total number of shares bought during that period was 538,636 while 650,695 shares were sold.

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