Scotiabank Expects Reduced Earnings for Marathon Petroleum

Marathon Petroleum Co. (NYSE:MPC - Free Report) - Analysts at Scotiabank lowered their FY2025 earnings per share (EPS) estimates for Marathon Petroleum in a research report issued to clients and investors on Wednesday, January 8th. Scotiabank analyst P. Cheng now forecasts that the oil and gas company will post earnings per share of $11.55 for the year, down from their previous forecast of $15.20. Scotiabank has a "Sector Outperform" rating and a $170.00 price objective on the stock. The consensus estimate for Marathon Petroleum's current full-year earnings is $9.47 per share.

A number of other equities analysts have also commented on MPC. Bank of America began coverage on shares of Marathon Petroleum in a report on Thursday, October 17th. They issued a "neutral" rating and a $174.00 price objective on the stock. TD Cowen restated a "buy" rating and set a $170.00 price objective on shares of Marathon Petroleum in a research note on Tuesday, December 10th. Wells Fargo & Company cut their target price on Marathon Petroleum from $186.00 to $182.00 and set an "overweight" rating on the stock in a research report on Friday. Citigroup decreased their price target on shares of Marathon Petroleum from $172.00 to $167.00 and set a "neutral" rating for the company in a research report on Thursday, October 10th. Finally, BMO Capital Markets cut their price target on shares of Marathon Petroleum from $200.00 to $190.00 and set an "outperform" rating on the stock in a report on Friday, October 4th. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating, nine have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $183.73.

Marathon Petroleum Price Performance

Shares of MPC stock opened at $142.55 on Monday. The firm has a fifty day simple moving average of $147.84 and a 200-day simple moving average of $159.92. 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 has a twelve month low of $130.54 and a twelve month high of $221.11. 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 (NYSE:MPC - Get Free Report) last released its quarterly earnings results on Tuesday, November 5th. The oil and gas company reported $1.87 EPS for the quarter, topping the consensus estimate of $0.97 by $0.90. Marathon Petroleum had a return on equity of 16.19% and a net margin of 3.15%. The firm had revenue of $35.37 billion for the quarter, compared to analyst estimates of $34.34 billion. During the same period in the previous year, the company posted $8.14 EPS. Marathon Petroleum's revenue for the quarter was down 14.9% on a year-over-year basis.

Marathon Petroleum declared that its Board of Directors has initiated a stock repurchase plan on Tuesday, November 5th that permits the company to buyback $5.00 billion in outstanding shares. This buyback authorization permits the oil and gas company to purchase up to 10% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board believes its shares are undervalued.

Marathon Petroleum Increases Dividend

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

Insider Activity at Marathon Petroleum

In related news, Director Jeffrey C. Campbell bought 6,000 shares of the business's stock in a transaction on Wednesday, December 4th. The shares were bought at an average cost 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 of the company's stock, valued at $911,124.90. This represents a 6,666.67 % increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.21% of the company's stock.

Institutional Trading of Marathon Petroleum

A number of large investors have recently modified their holdings of the company. Wellington Management Group LLP grew its position in Marathon Petroleum by 342.1% in the 3rd quarter. Wellington Management Group LLP now owns 5,593,729 shares of the oil and gas company's stock valued at $911,274,000 after buying an additional 4,328,470 shares in the last quarter. International Assets Investment Management LLC lifted its stake in shares of Marathon Petroleum by 19,153.8% in the 3rd quarter. International Assets Investment Management LLC now owns 1,311,182 shares of the oil and gas company's stock worth $213,605,000 after acquiring an additional 1,304,372 shares during the period. ING Groep NV bought a new position in shares of Marathon Petroleum in the third quarter valued at approximately $114,107,000. National Bank of Canada FI increased its stake in shares of Marathon Petroleum by 212.9% during the third quarter. National Bank of Canada FI now owns 846,756 shares of the oil and gas company's stock valued at $137,945,000 after acquiring an additional 576,119 shares during the period. Finally, Bank of Montreal Can raised its holdings in Marathon Petroleum by 45.4% during the third quarter. Bank of Montreal Can now owns 1,329,422 shares of the oil and gas company's stock worth $217,560,000 after purchasing an additional 415,368 shares in the last quarter. Institutional investors and hedge funds own 76.77% of the company's stock.

About Marathon Petroleum

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.