Time To Be Bearish Or Bullish On MPLX LP (MPLX) Stock?

Stock analysts at Jefferies, assumed coverage of shares of MPLX LP (NYSE:MPLX) with Buy recommendation, according to their opinion released on September 03. Analysts at BofA/Merrill are sticking to their Buy recommendation for the stock. However, on August 19, they lifted target price to $34 from the prior target set at $39. Analysts at BofA/Merrill, made their first call for this company shares with a Buy rating, according to a research note that dated back to August 19.

Let’s take a glimpse at some insider activity at MPLX LP (NYSE:MPLX) and observe the pattern. The earliest insider trade happened on 08/09/2019. Peiffer Garry L. gathered a total of 18.8 thousand shares of the firm at average share price of $27.3. The total amount for the purchase was set at $513.24 thousand. On completing this exchange, the Director account balance was 82.8 thousand shares. The stock lost -13.92 percent from that insider purchase. On 08/07/2019, Heminger Gary R., Chairman, CEO, did a purchase of 42.6 thousand shares at a price of $27.18 per share. This increased 1.16 million shares to the insider’s fortune and the stock experienced a -13.54 percent retreat in price since the news became public. This exchange saw 306.47 thousand shares get into the Chairman, CEO account. On 08/07/2019, Director SANDMAN DAN D recorded a purchase transaction valued at $998.53 thousand. The purchase at $27.26 a share has added 36.63 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed -13.79 percent decrease since the transaction reporting date. The company insider is left with 97.87 thousand shares remaining in the account. Peiffer Garry L., who works as Director at the company, performed a purchase of 18 thousand shares in a transaction worth $488.7 thousand. The acquisition recorded on 08/07/2019 was priced at $27.15 per share. The stock price plunged -13.44 percent since the transaction. Peiffer Garry L. currently holds a stake of 64 thousand in MPLX stock which is worth $1.5 million after the insider buying.

The stock is lingering around the initial support level of $23.04. After this, the following support is at the zone of $22.57. Up until the time the MPLX stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 34.85 on the daily chart, and this may be a cause for comfort. In case the price goes below $22.57 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $23.86 level may cause a pull-back move approaching $24.21 mark.

On December 02, 2019, MPLX LP (NYSE:MPLX) shares lost -0.63% or -0.15 points to close at $23.5 with a heavy trading volume of 3.43 million shares. It opened the trading session at $23.75, the shares rose to $23.75 and dropped to $22.93, the range by which the price of stock traded the whole day. The company now has a market cap of $25 billion and currently has 1.07 billion outstanding shares. MPLX LP (MPLX) stock has plunged -10.88 percent of market value in 21 trading days.

MPLX stock’s trailing 3-year beta is 1.01, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $2.17 share in the trailing 52 weeks. The stock’s value fallen -22.44 percent year to date (YTD) compared to a decline of -28.85 percent in 52 week’s period. The firm’s shares are still trading -34.45 percent below its 1-year high of $35.85 and 3.98 percent up from 52-week low of $22.60. The average consensus ranking on the company is 1.7, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

MPLX LP (MPLX) shares are trading at a P/E ratio of 10.2 times earnings posted in the trailing 12 months. The industry MPLX deals with has an average P/E of 18.4. Its P/B ratio is standing at 1.3X compared to the 1.9 industry average. It is additionally sporting a 2.5 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.5. MPLX LP has a 58.9% gross profit margin, with its operating margin around 40.3%. Alongside this, the company’s net profit margin currently stands at 24%.

Past records have indicated that shares in MPLX LP declined on 15 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.