Marathon Petroleum (NYSE:MPC) Stock Falls 7.5% – Here’s Why

Marathon Petroleum Corporation (NYSE:MPC) shares fell 7.5% during trading on Tuesday. The stock traded as low as $434.24 and last traded at $435.2940. Approximately 2,934,460 shares were traded during trading, an increase of 19% from the average session volume of 2,464,862 shares. The stock had previously closed at $470.64.

Marathon Petroleum News Summary

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

• Positive Sentiment: Analysts continue to see support from firm refining margins, while Zacks included MPC among its recommended refining and marketing stocks. Strong gasoline prices and constrained fuel inventories could also benefit refiners if margins remain elevated. 3 Top Refining and Marketing Picks on Strong Profit Margins
• Positive Sentiment: Raymond James reportedly raised its price target for MPC to $560, signaling continued optimism about the company’s earnings and refining outlook. Raymond James Raises Target for Marathon Petroleum Stock
• Neutral Sentiment: MPC is expected to report year-over-year earnings growth next week, but Zacks says the company lacks the combination of positive earnings-surprise factors that would typically support a likely beat. This raises the risk of heightened volatility around the release. Marathon Petroleum Earnings Expected to Grow
• Negative Sentiment: Investors appear to be taking profits and trimming refining exposure ahead of the November 3 earnings report after a strong run in MPC and increased volatility in crude oil and product markets. There was no fresh filing or reported operational miss identified as a clear catalyst for the decline. Marathon Petroleum Slides Ahead of Earnings
• Negative Sentiment: ETFs were reported as net sellers of MPC, adding to near-term selling pressure. The main risk for investors is that earnings expectations may already reflect strong refining margins, leaving the stock vulnerable if results or guidance fall short. ETFs Are Net Sellers of Marathon Petroleum

Analysts Set New Price Targets

MPC has been the topic of a number of research reports. Citigroup raised their price objective on Marathon Petroleum from $318.00 to $518.00 and gave the company a “neutral” rating in a report on Tuesday, October 13th. Bank of America increased their target price on shares of Marathon Petroleum from $410.00 to $426.00 and gave the company a “neutral” rating in a research report on Friday, October 2nd. Evercore set a $330.00 price target on shares of Marathon Petroleum in a research note on Wednesday, August 5th. The Goldman Sachs Group boosted their price target on shares of Marathon Petroleum from $376.00 to $472.00 and gave the stock a “buy” rating in a research report on Monday, September 21st. Finally, Barclays upped their price objective on shares of Marathon Petroleum from $321.00 to $488.00 and gave the company an “overweight” rating in a research note on Monday, October 12th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Marathon Petroleum currently has an average rating of “Moderate Buy” and an average price target of $424.31.

Marathon Petroleum Stock Down 7.5%

The firm has a 50-day moving average of $409.37 and a two-hundred day moving average of $283.02. The company has a quick ratio of 0.89, a current ratio of 1.25 and a debt-to-equity ratio of 1.19. The company has a market capitalization of $127.08 billion, a PE ratio of 14.96, a price-to-earnings-growth ratio of 0.12 and a beta of 0.54.

Marathon Petroleum (NYSE:MPC) last announced its quarterly earnings results on Tuesday, August 4th. The oil and gas company reported $17.73 EPS for the quarter, beating 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 posted $3.96 EPS. The company’s quarterly revenue was up 53.5% on a year-over-year basis. Equities research analysts predict that Marathon Petroleum Corporation will post 64.12 earnings per share for the current fiscal year.

Marathon Petroleum Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Wednesday, August 19th were given a dividend of $1.00 per share. This represents a $4.00 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend was Wednesday, August 19th. Marathon Petroleum’s dividend payout ratio (DPR) is presently 13.75%.

Insider Buying and Selling at Marathon Petroleum

In other Marathon Petroleum news, VP Erin M. Brzezinski sold 570 shares of the company’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 $571,757.04. This represents a 26.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Molly Benson sold 17,196 shares of the stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $358.57, for a total transaction of $6,165,969.72. Following the transaction, the insider directly owned 30,334 shares of the company’s stock, valued at approximately $10,876,862.38. This trade represents a 36.18% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 21,691 shares of company stock valued at $7,780,127 over the last 90 days. 0.17% of the stock is owned by insiders.

Institutional Trading of Marathon Petroleum

Several institutional investors have recently added to or reduced their stakes in the stock. Great Lakes Retirement Inc. grew its stake in shares of Marathon Petroleum by 15.2% in the third quarter. Great Lakes Retirement Inc. now owns 1,753 shares of the oil and gas company’s stock valued at $693,000 after buying an additional 231 shares in the last quarter. Jacobsen Capital Management acquired a new position in Marathon Petroleum during the 3rd quarter worth about $210,000. Asset Management One Co. Ltd. boosted its holdings in Marathon Petroleum by 0.5% during the 3rd quarter. Asset Management One Co. Ltd. now owns 124,729 shares of the oil and gas company’s stock valued at $49,320,000 after acquiring an additional 655 shares during the period. Balance Wealth Partners LLC purchased a new position in Marathon Petroleum during the 3rd quarter valued at about $57,000. Finally, Investment Advisory Services Inc. TX ADV acquired a new position in Marathon Petroleum in the 3rd quarter valued at about $210,000. Institutional investors and hedge funds own 76.77% of the company’s stock.

Marathon Petroleum Company Profile

Marathon Petroleum Corporation (NYSE:MPC) is an American downstream energy company engaged in refining, marketing, and transporting petroleum products. Its operations include converting crude oil into gasoline, diesel, jet fuel, asphalt, propane, and other refined products used by transportation, industrial, and commercial customers.

The company markets fuel under the Marathon brand and supplies products to independent marketers, commercial businesses, and other wholesale customers. Marathon Petroleum also owns a general-partner interest and significant limited-partner interest in MPLX Inc, a midstream company that operates pipelines, storage facilities, terminals, and gathering and processing assets supporting the movement of crude oil and natural gas liquids.

Marathon Petroleum’s refining and midstream activities are concentrated in the United States, with assets serving regions across the Midwest, Gulf Coast, and West Coast.