Zacks Investment Research lowered shares of Magellan Midstream Partners L.P. (NYSE:MMP) from a hold rating to a sell rating in a research note published on Tuesday, July 11th.
According to Zacks, “Considering Magellan Midstream's balance sheet pressure and the negative sentiment surrounding oil prices, we have turned bearish on the publicly traded partnership. Crude's historic decline has undoubtedly impacted the demand for transportation and storage services. While the midstream MLP has underperformed the Zacks categorized 'Oil/Gas Production Pipeline MLP' industry across the past three-month period, its debt-to-equity ratio of around 2 is almost double when compared to the industry average. We also need to factor in the delay in project completions and cost overruns. We further believe that MLP valuations will be largely disconnected from business fundamentals as long as the hoopla over falling crude prices continue. In the wake of weak industry sentiment and apprehensions of more punishing times ahead with future cash flows drying up, we see little reason for investors to hold the stock.”
Several other equities research analysts also recently commented on the stock. Mizuho downgraded shares of Magellan Midstream Partners L.P. from a neutral rating to an underperform rating and decreased their target price for the stock from $74.00 to $72.00 in a research report on Monday, July 10th. BidaskClub raised shares of Magellan Midstream Partners L.P. from a sell rating to a hold rating in a research report on Thursday, July 6th. Jefferies Group LLC began coverage on shares of Magellan Midstream Partners L.P. in a research report on Thursday, June 22nd. They set a hold rating and a $73.00 target price for the company. Royal Bank Of Canada reissued a hold rating and set a $80.00 target price on shares of Magellan Midstream Partners L.P. in a research report on Tuesday, June 20th. Finally, Credit Suisse Group raised shares of Magellan Midstream Partners L.P. from an underperform rating to a neutral rating and boosted their target price for the stock from $80.00 to $84.00 in a research report on Thursday, May 4th. Four investment analysts have rated the stock with a sell rating, nine have issued a hold rating and six have assigned a buy rating to the stock. The stock has a consensus rating of Hold and a consensus price target of $79.10.
Magellan Midstream Partners L.P. (NYSE MMP) opened at 67.50 on Tuesday. The stock has a 50 day moving average price of $70.06 and a 200 day moving average price of $74.61. Magellan Midstream Partners L.P. has a one year low of $64.25 and a one year high of $81.77. The company has a market cap of $15.39 billion, a PE ratio of 18.30 and a beta of 0.80.
Magellan Midstream Partners L.P. (NYSE:MMP) last posted its earnings results on Wednesday, August 2nd. The pipeline company reported $0.92 EPS for the quarter, topping the consensus estimate of $0.89 by $0.03. The company had revenue of $619.40 million during the quarter, compared to the consensus estimate of $561.70 million. Magellan Midstream Partners L.P. had a net margin of 34.63% and a return on equity of 41.81%. The firm’s revenue for the quarter was up 19.4% on a year-over-year basis. During the same period in the previous year, the firm posted $0.82 earnings per share. On average, equities analysts anticipate that Magellan Midstream Partners L.P. will post $3.91 EPS for the current fiscal year.
The business also recently announced a quarterly dividend, which will be paid on Monday, August 14th. Stockholders of record on Monday, July 31st will be given a dividend of $0.89 per share. This is an increase from Magellan Midstream Partners L.P.’s previous quarterly dividend of $0.84. This represents a $3.56 dividend on an annualized basis and a dividend yield of 5.27%. The ex-dividend date is Thursday, July 27th. Magellan Midstream Partners L.P.’s dividend payout ratio is currently 96.74%.
In other news, insider Douglas J. May sold 8,000 shares of the stock in a transaction that occurred on Wednesday, May 24th. The shares were sold at an average price of $75.00, for a total transaction of $600,000.00. Following the completion of the transaction, the insider now directly owns 27,599 shares of the company’s stock, valued at approximately $2,069,925. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.24% of the stock is owned by corporate insiders.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in MMP. Private Trust Co. NA increased its position in Magellan Midstream Partners L.P. by 5.7% in the second quarter. Private Trust Co. NA now owns 18,792 shares of the pipeline company’s stock worth $1,339,000 after buying an additional 1,009 shares in the last quarter. Morningstar Investment Services LLC increased its position in Magellan Midstream Partners L.P. by 1.7% in the first quarter. Morningstar Investment Services LLC now owns 389,972 shares of the pipeline company’s stock worth $29,993,000 after buying an additional 6,562 shares in the last quarter. Wedbush Securities Inc. increased its position in Magellan Midstream Partners L.P. by 0.4% in the first quarter. Wedbush Securities Inc. now owns 10,262 shares of the pipeline company’s stock worth $789,000 after buying an additional 39 shares in the last quarter. Heritage Wealth Advisors bought a new position in Magellan Midstream Partners L.P. during the first quarter worth $1,963,000. Finally, Brighton Jones LLC bought a new position in Magellan Midstream Partners L.P. during the first quarter worth $426,000. 62.86% of the stock is owned by hedge funds and other institutional investors.
About Magellan Midstream Partners L.P.
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