Marathon Petroleum (NYSE:MPC) Shares Gap Up – Should You Buy?

Marathon Petroleum Co. (NYSE:MPC) shares gapped up prior to trading on Tuesday . The stock had previously closed at $144.94, but opened at $152.36. Marathon Petroleum shares last traded at $149.06, with a volume of 301,349 shares trading hands.

Wall Street Analyst Weigh In

Several equities research analysts have commented on the stock. TD Cowen raised their price target on shares of Marathon Petroleum from $187.00 to $190.00 and gave the company a “buy” rating in a research note on Wednesday, August 7th. Wolfe Research initiated coverage on Marathon Petroleum in a report on Thursday, July 18th. They set an “outperform” rating and a $200.00 target price on the stock. Morgan Stanley reduced their price target on shares of Marathon Petroleum from $196.00 to $182.00 and set an “overweight” rating for the company in a report on Monday, September 16th. Barclays reduced their price objective on Marathon Petroleum from $180.00 to $168.00 and set an “overweight” rating on the stock in a report on Thursday, October 10th. Finally, Citigroup dropped their target price on shares of Marathon Petroleum from $172.00 to $167.00 and set a “neutral” rating on the stock in a report on Thursday, October 10th. Two analysts have rated the stock with a sell rating, six have issued a hold rating, nine have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $187.00.

Marathon Petroleum Price Performance

The company has a debt-to-equity ratio of 0.86, a quick ratio of 0.90 and a current ratio of 1.31. The firm has a fifty day simple moving average of $162.00 and a two-hundred day simple moving average of $170.76. The firm has a market cap of $50.28 billion, a PE ratio of 7.62, a PEG ratio of 2.74 and a beta of 1.38.

Marathon Petroleum (NYSE:MPC) last posted its quarterly earnings results on Tuesday, August 6th. The oil and gas company reported $4.12 earnings per share for the quarter, beating the consensus estimate of $3.09 by $1.03. The firm had revenue of $38.36 billion during the quarter, compared to the consensus estimate of $36.66 billion. Marathon Petroleum had a net margin of 4.79% and a return on equity of 24.05%. The company’s revenue was up 4.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $5.32 earnings per share. Equities analysts predict that Marathon Petroleum Co. will post 8.71 EPS for the current fiscal year.

Marathon Petroleum Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 10th. Investors of record on Wednesday, November 20th will be given a $0.91 dividend. This is a positive change from Marathon Petroleum’s previous quarterly dividend of $0.83. This represents a $3.64 annualized dividend and a dividend yield of 2.42%. The ex-dividend date of this dividend is Wednesday, November 20th. Marathon Petroleum’s dividend payout ratio (DPR) is presently 17.34%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. WR Wealth Planners LLC raised its holdings in Marathon Petroleum by 15.2% in the 2nd quarter. WR Wealth Planners LLC now owns 431 shares of the oil and gas company’s stock valued at $75,000 after buying an additional 57 shares during the period. D Orazio & Associates Inc. boosted its holdings in shares of Marathon Petroleum by 3.2% in the first quarter. D Orazio & Associates Inc. now owns 1,894 shares of the oil and gas company’s stock valued at $382,000 after acquiring an additional 59 shares in the last quarter. Legacy Advisors LLC lifted its stake in shares of Marathon Petroleum by 5.0% in the second quarter. Legacy Advisors LLC now owns 1,238 shares of the oil and gas company’s stock valued at $215,000 after purchasing an additional 59 shares during the period. Latitude Advisors LLC raised its position in Marathon Petroleum by 3.6% during the second quarter. Latitude Advisors LLC now owns 1,714 shares of the oil and gas company’s stock worth $297,000 after acquiring an additional 60 shares during the last quarter. Finally, SouthState Corp boosted its position in Marathon Petroleum by 1.5% during the second quarter. SouthState Corp now owns 4,122 shares of the oil and gas company’s stock worth $715,000 after acquiring an additional 61 shares during the last quarter. Hedge funds and other institutional investors own 76.77% of the company’s stock.

About Marathon Petroleum

Marathon Petroleum Corporation, together with its subsidiaries, operates as an integrated downstream energy company primarily in the United States. The company operates through Refining & Marketing, and Midstream segments. 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 and distributes refined products, including renewable diesel, through transportation, storage, distribution, and marketing services.