Marathon Petroleum Corporation (MPC) Stock Is Less Attractive Than It Looks

Taking into account all relevant factors, Marathon Petroleum Corporation (NYSE:MPC) scores 56.% Buy on the technical side. The share price is also flashing a Sell from the Barchart TrendSpotter trading system. Investors starting out on a short-term path of investing should know that short terms indicators for MPC averaged 50% Buy with an average daily trading volume over the past 20 days at 5032270 shares. Those using medium-term investment strategies, the shares have overall a 0.5% Buy signal while the 50-day average daily volume remained almost 6236000 shares. It’s also important to note that the stock, whose average daily volume over the 100 days as of this piece was shares, is signaling100% Buy for long term investors.

The stock is lingering around the initial support level of $59.37. After this, the following support is at the zone of $58.71. Up until the time the MPC stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 36.86 on the daily chart, and this may be a cause for comfort. In case the price goes below $58.71 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $60.56 level may cause a pull-back move approaching $61.09 mark.

Marathon Petroleum Corporation (MPC) is most likely going to rise 34.93 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $98-month high price target. This represents a whopping 63.25 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $79, which means a return possibility of 31.6 percent in comparison with the closing price of the stock of $60.03 on December 03. The lowest price set for the stock is $69 — just above 14.94 percent from MPC share price now.

Let’s take a glimpse at some insider activity at Marathon Petroleum Corporation (NYSE:MPC) and observe the pattern. The earliest insider trade happened on 06/11/2019. ROHR JAMES E gathered a total of 12.5 thousand shares of the firm at average share price of $48.14. The total amount for the purchase was set at $601.75 thousand. On completing this exchange, the Director account balance was 45.75 thousand shares. The stock grew 26.44 percent from that insider purchase. On 05/15/2019, Templin Donald C., Pres., Refining, Mktg & Supply, did a purchase of 5 thousand shares at a price of $50.74 per share. This increased 253.7 thousand shares to the insider’s fortune and the stock experienced a 19.96 percent rally in price since the news became public. This exchange saw 98.18 thousand shares get into the Pres., Refining, Mktg & Supply account. On 02/22/2019, Chairman, CEO Heminger Gary R. recorded a sale transaction valued at $12.16 million. The sale at $65 a share has eliminated 187.14 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -6.35 percent decrease since the transaction reporting date. The company insider is left with 567.19 thousand shares remaining in the account. DAVIS STEVEN A, who works as Director at the company, performed a purchase of 3.5 thousand shares in a transaction worth $217.49 thousand. The acquisition recorded on 12/14/2018 was priced at $62.14 per share. The stock price plunged -2.04 percent since the transaction. DAVIS STEVEN A currently holds a stake of 31.09 thousand in MPC stock which is worth $1.87 million after the insider buying.

On December 03, 2019, Marathon Petroleum Corporation (NYSE:MPC) shares lost -1.38% or -0.84 points to close at $60.03 with a thin trading volume of 5.005 million shares. It opened the trading session at $60.09, the shares rose to $60.4284 and dropped to $59.24, the range by which the price of stock traded the whole day. The company now has a market cap of $39.5 billion and currently has 658.21 million outstanding shares. Marathon Petroleum Corporation (MPC) stock has plunged -9.69 percent of market value in 21 trading days.

Stock analysts at Cowen lifted target price for Marathon Petroleum Corporation (NYSE:MPC) shares but reaffirmed their Market Perform recommendation for the stock in their opinion released on September 26. The price target has been increased from $57 to $60. Cowen analysts again handed out a Market Perform rating to MPC shares but they lifted target price for the firm in a flash note to investors on September 25. The price target has been raised from $57 to the new $60. Cowen, analysts launched coverage of MPC shares with a Market Perform recommendation, according to their flash note to investors on September 25.

MPC stock’s trailing 3-year beta is 1.68, 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 $4.66 share in the trailing 52 weeks. The stock’s value surged 1.73 percent year to date (YTD) compared to a decline of -7.87 percent in 52 week’s period. The firm’s shares are still trading -13.81 percent below its 1-year high of $69.65 and 36.56 percent up from 52-week low of $43.96. The average consensus ranking on the company is 1.6, 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.

Marathon Petroleum Corporation (MPC) shares are trading at a P/E ratio of 12.9 times earnings posted in the trailing 12 months. The industry MPC deals with has an average P/E of 13.7. Its P/B ratio is standing at 1.2X compared to the 1.6 industry average. It is additionally sporting a 0.3 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.3. Marathon Petroleum Corporation has a 11.6% gross profit margin, with its operating margin around 5.3%. Alongside this, the company’s net profit margin currently stands at 2.5%.

Past records have indicated that shares in Marathon Petroleum Corporation declined on 17 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. Investors will get the next hint of MPC’s Q4 earnings on January 28. Analysts are predicting revenue to suffer decline of -1 percent to $32.2B in the financial fourth quarter, while EPS will soar by about -45.05 percent to $1.22 per share. In the last quarter, it earnings of -$0.09 per share came worse than the $1.33372, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $32.54B, missing the $34.16B analysts had expected. Earnings are seen to rise by 40.2 percent this year, 67.5 percent in the coming year and the trend continues by 11.9 percent every year in the next 5 years.