Marathon Petroleum (NYSE:MPC) Hits New 12-Month High – Here’s Why

Marathon Petroleum Corporation (NYSE:MPC)’s stock price hit a new 52-week high during trading on Wednesday . The company traded as high as $399.62 and last traded at $398.7220, with a volume of 1842866 shares. The stock had previously closed at $388.90.

More Marathon Petroleum News

Here are the key news stories impacting Marathon Petroleum this week:

• Positive Sentiment: Record-high crack spreads and strong refining margins are supporting MPC’s earnings outlook. Rising earnings estimates have helped Zacks identify the company as a “Bull of the Day” and a strong momentum stock. Marathon Petroleum and Campbell’s highlighted as Zacks Bull and Bear of the Day
• Positive Sentiment: Analyst support is reinforcing the rally. UBS reportedly raised its view on MPC, while Wells Fargo has maintained a constructive outlook and expects further gains despite concerns that the stock’s sharp advance could lead to a valuation pullback. MPC Gets a UBS Raise While Refiners Keep Cashing In
• Positive Sentiment: Escalating tensions involving Iran and threats to U.S. energy assets in the Gulf pushed crude oil above $91 per barrel and prompted money to rotate into energy-related stocks. Higher oil prices and geopolitical risk can support refining-sector sentiment, although the effect on MPC’s margins may depend on how product prices and crude costs move relative to one another. Iran Just Raised the Stakes in the Gulf—These 5 Stocks Stand to Benefit
• Neutral Sentiment: MPC has become a heavily searched and widely discussed stock on Zacks, with its momentum and “Strong Buy” characteristics attracting additional investor attention. This may increase near-term demand but does not itself change the company’s fundamentals. Why Marathon Petroleum is a Strong Momentum Stock

Analyst Upgrades and Downgrades

Several research analysts have commented on MPC shares. The Goldman Sachs Group lifted their target price on Marathon Petroleum from $291.00 to $376.00 and gave the stock a “buy” rating in a report on Wednesday, July 22nd. BMO Capital Markets reiterated an “outperform” rating on shares of Marathon Petroleum in a report on Friday, June 12th. Mizuho boosted their price target on shares of Marathon Petroleum from $284.00 to $304.00 and gave the stock a “neutral” rating in a research report on Tuesday, August 11th. Weiss Ratings upgraded shares of Marathon Petroleum from a “hold (c+)” rating to a “buy (b)” rating in a research report on Wednesday, August 5th. Finally, Zacks Research lowered shares of Marathon Petroleum from a “strong-buy” rating to a “hold” rating in a report on Wednesday, June 17th. Twelve analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, Marathon Petroleum currently has an average rating of “Moderate Buy” and an average target price of $330.50.

Marathon Petroleum Stock Up 2.5%

The company has a market cap of $116.40 billion, a P/E ratio of 13.71, a PEG ratio of 0.25 and a beta of 0.53. The stock’s 50-day moving average price is $327.79 and its 200-day moving average price is $269.70. The company has a current ratio of 1.25, a quick ratio of 0.89 and a debt-to-equity ratio of 1.19.

Marathon Petroleum (NYSE:MPC) last announced its quarterly earnings results on Tuesday, August 4th. The oil and gas company reported $17.73 earnings per share (EPS) for the quarter, topping the consensus estimate of $14.27 by $3.46. Marathon Petroleum had a return on equity of 31.96% and a net margin of 5.48%.The business had revenue of $51.99 billion for the quarter, compared to analyst estimates of $40.87 billion. During the same quarter in the prior year, the company earned $3.96 earnings per share. The company’s quarterly revenue was up 53.5% on a year-over-year basis. As a group, research analysts forecast that Marathon Petroleum Corporation will post 47.23 EPS for the current year.

Marathon Petroleum Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Wednesday, August 19th will be paid a dividend of $1.00 per share. This represents a $4.00 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Wednesday, August 19th. Marathon Petroleum’s payout ratio is 13.75%.

Insider Buying and Selling at Marathon Petroleum

In related news, VP Erin M. Brzezinski sold 570 shares of the firm’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $362.79, for a total value of $206,790.30. Following the transaction, the vice president owned 1,576 shares of the company’s stock, valued at approximately $571,757.04. This trade represents a 26.56% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Molly R. Benson sold 17,196 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $358.57, for a total value of $6,165,969.72. Following the sale, the insider directly owned 30,334 shares of the company’s stock, valued at $10,876,862.38. This represents a 36.18% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 21,691 shares of company stock valued at $7,780,127. Corporate insiders own 0.17% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Brighton Jones LLC raised its position in Marathon Petroleum by 30.9% in the 4th quarter. Brighton Jones LLC now owns 4,988 shares of the oil and gas company’s stock valued at $696,000 after buying an additional 1,178 shares during the last quarter. Woodline Partners LP raised its holdings in shares of Marathon Petroleum by 38.3% in the first quarter. Woodline Partners LP now owns 26,697 shares of the oil and gas company’s stock valued at $3,889,000 after purchasing an additional 7,396 shares during the last quarter. Sivia Capital Partners LLC lifted its position in shares of Marathon Petroleum by 26.6% during the second quarter. Sivia Capital Partners LLC now owns 2,221 shares of the oil and gas company’s stock valued at $369,000 after purchasing an additional 466 shares in the last quarter. Marshall Wace LLP purchased a new position in Marathon Petroleum during the second quarter worth about $8,505,000. Finally, AXA S.A. grew its position in Marathon Petroleum by 46.7% in the 2nd quarter. AXA S.A. now owns 39,675 shares of the oil and gas company’s stock worth $6,590,000 after purchasing an additional 12,639 shares in the last quarter. Hedge funds and other institutional investors own 76.77% of the company’s stock.

About Marathon Petroleum

Marathon Petroleum Corporation (NYSE:MPC) is an integrated downstream energy company engaged primarily in refining, marketing and transporting petroleum products. The company converts crude oil and other feedstocks into gasoline, diesel and other transportation fuels, as well as asphalt, propane, petrochemical feedstocks and related products.

Marathon Petroleum operates a network of refineries in the United States and markets refined products through wholesale channels, branded retail locations and commercial customers.