Scotiabank Expects Weaker Earnings for Marathon Petroleum

Marathon Petroleum Co. (NYSE:MPC) – Research analysts at Scotiabank cut their FY2025 EPS estimates for Marathon Petroleum in a note issued to investors on Wednesday, January 8th. Scotiabank analyst P. Cheng now forecasts that the oil and gas company will post earnings of $11.55 per share for the year, down from their prior forecast of $15.20. Scotiabank currently has a “Sector Outperform” rating and a $170.00 target price on the stock. The consensus estimate for Marathon Petroleum’s current full-year earnings is $9.47 per share.

A number of other research analysts also recently commented on the stock. BMO Capital Markets dropped their price objective on shares of Marathon Petroleum from $200.00 to $190.00 and set an “outperform” rating for the company in a research note on Friday, October 4th. Bank of America started coverage on shares of Marathon Petroleum in a research report on Thursday, October 17th. They set a “neutral” rating and a $174.00 price target for the company. TD Cowen reiterated a “buy” rating and issued a $170.00 price target on shares of Marathon Petroleum in a report on Tuesday, December 10th. JPMorgan Chase & Co. dropped their price objective on Marathon Petroleum from $172.00 to $171.00 and set a “neutral” rating for the company in a report on Wednesday, October 9th. Finally, Mizuho reduced their target price on Marathon Petroleum from $175.00 to $174.00 and set a “neutral” rating on the stock in a report on Monday, December 16th. Two equities research analysts have rated the stock with a sell rating, six have given a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $183.73.

Marathon Petroleum Stock Performance

NYSE MPC opened at $142.55 on Monday. The business’s 50-day moving average price is $147.84 and its 200 day moving average price is $159.92. The company has a current ratio of 1.23, a quick ratio of 0.76 and a debt-to-equity ratio of 0.94. Marathon Petroleum has a twelve month low of $130.54 and a twelve month high of $221.11. The company has a market capitalization of $45.81 billion, a PE ratio of 11.30, a price-to-earnings-growth ratio of 2.56 and a beta of 1.42.

Marathon Petroleum (NYSE:MPC) last issued its quarterly earnings results on Tuesday, November 5th. The oil and gas company reported $1.87 earnings per share for the quarter, beating the consensus estimate of $0.97 by $0.90. The company had revenue of $35.37 billion during the quarter, compared to the consensus estimate of $34.34 billion. Marathon Petroleum had a return on equity of 16.19% and a net margin of 3.15%. Marathon Petroleum’s revenue was down 14.9% on a year-over-year basis. During the same period in the previous year, the firm posted $8.14 EPS.

Marathon Petroleum declared that its board has approved a stock buyback plan on Tuesday, November 5th that allows the company to repurchase $5.00 billion in shares. This repurchase authorization allows the oil and gas company to repurchase up to 10% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board believes its stock is undervalued.

Marathon Petroleum Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, December 10th. Investors of record on Wednesday, November 20th were issued a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a yield of 2.55%. This is a positive change from Marathon Petroleum’s previous quarterly dividend of $0.83. The ex-dividend date was Wednesday, November 20th. Marathon Petroleum’s dividend payout ratio (DPR) is presently 28.84%.

Insider Buying and Selling

In related news, Director Jeffrey C. Campbell purchased 6,000 shares of the company’s stock in a transaction that occurred on Wednesday, December 4th. The stock was acquired at an average price of $149.61 per share, for a total transaction of $897,660.00. Following the completion of the purchase, the director now owns 6,090 shares in the company, valued at approximately $911,124.90. This represents a 6,666.67 % increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.21% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Marathon Petroleum

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Gladius Capital Management LP bought a new stake in Marathon Petroleum in the third quarter valued at about $26,000. MeadowBrook Investment Advisors LLC increased its holdings in shares of Marathon Petroleum by 88.9% in the 3rd quarter. MeadowBrook Investment Advisors LLC now owns 170 shares of the oil and gas company’s stock valued at $28,000 after acquiring an additional 80 shares during the last quarter. True Wealth Design LLC raised its position in shares of Marathon Petroleum by 672.7% during the 3rd quarter. True Wealth Design LLC now owns 170 shares of the oil and gas company’s stock valued at $28,000 after acquiring an additional 148 shares in the last quarter. Harbor Capital Advisors Inc. bought a new position in Marathon Petroleum during the third quarter worth $30,000. Finally, Darwin Wealth Management LLC acquired a new position in Marathon Petroleum in the third quarter worth $33,000. Institutional investors own 76.77% of the company’s stock.

Marathon Petroleum Company Profile

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.