Marathon Petroleum Corporation [NYSE: MPC] price plunged by -1.93 percent to reach at -$1.19. The company report on May 17, 2021 that Marathon Petroleum Corp. announces modified Dutch auction tender offer to purchase up to $4.0 billion of its outstanding common stock.
Marathon Petroleum Corp. (NYSE: MPC) announced that it commenced a “modified Dutch auction” tender offer to purchase up to $4.0 billion of shares of its common stock, or such lesser number of shares of its common stock as are properly tendered and not properly withdrawn, at a price not greater than $63.00 and not less than $56.00 per share of common stock, to the tendering shareholder in cash, less any applicable withholding taxes and without interest (the “Offer”). The Offer is made upon the terms and subject to the conditions described in the offer to purchase and in the related letter of transmittal. The Offer begins, May 17, 2021, and will expire at midnight, New York City time, at the end of the day on June 14, 2021 (the “Expiration Date”), unless extended or earlier terminated by MPC.
MPC is conducting the Offer by means of a procedure commonly called a “modified Dutch auction.” This procedure allows shareholders to select the price, within a price range specified by MPC, and the number of shares they are willing to sell at that price (or, should a higher price be determined as the “purchase price,” such higher price). MPC intends to fund the purchase of the shares with a portion of the after-tax proceeds from the sale of Speedway, a retail transportation fuel and convenience store business, to 7-Eleven, Inc., which was completed on May 14, 2021. The Offer is being made under MPC’s previously announced $10.0 billion share repurchase authorization.
A sum of 11762824 shares traded at recent session while its average daily volume was at 6.53M shares. Marathon Petroleum Corporation shares reached a high of $61.88 and dropped to a low of $60.27 until finishing in the latest session at $60.33.
The one-year MPC stock forecast points to a potential upside of 7.72. The average equity rating for MPC stock is currently 1.90, trading closer to a bullish pattern in the stock market.
Guru’s Opinion on Marathon Petroleum Corporation [MPC]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for MPC shares is $65.38 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on MPC stock is a recommendation set at 1.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Credit Suisse have made an estimate for Marathon Petroleum Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on May 18, 2021. The new note on the price target was released on April 16, 2021, representing the official price target for Marathon Petroleum Corporation stock. Previously, the target price had yet another raise to $67, while JP Morgan analysts kept a Overweight rating on MPC stock.
The Average True Range (ATR) for Marathon Petroleum Corporation is set at 1.97, with the Price to Sales ratio for MPC stock in the period of the last 12 months amounting to 0.52. The Price to Book ratio for the last quarter was 1.82, with the Price to Cash per share for the same quarter was set at 0.98.
MPC Stock Performance Analysis:
Marathon Petroleum Corporation [MPC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.88. With this latest performance, MPC shares gained by 12.91% in over the last four-week period, additionally plugging by 60.62% over the last 6 months – not to mention a rise of 72.62% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for MPC stock in for the last two-week period is set at 64.24, with the RSI for the last a single of trading hit 64.94, and the three-weeks RSI is set at 62.75 for Marathon Petroleum Corporation [MPC]. The present Moving Average for the last 50 days of trading for this stock 55.50, while it was recorded at 59.94 for the last single week of trading, and 43.26 for the last 200 days.
Insight into Marathon Petroleum Corporation Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Marathon Petroleum Corporation [MPC] shares currently have an operating margin of -4.01 and a Gross Margin at +0.02. Marathon Petroleum Corporation’s Net Margin is presently recorded at -15.95.
Return on Total Capital for MPC is now -4.02, given the latest momentum, and Return on Invested Capital for the company is -19.08. Return on Equity for this stock declined to -39.48, with Return on Assets sitting at -12.01. When it comes to the capital structure of this company, Marathon Petroleum Corporation [MPC] has a Total Debt to Total Equity ratio set at 149.08. Additionally, MPC Total Debt to Total Capital is recorded at 59.85, with Total Debt to Total Assets ending up at 38.86. Long-Term Debt to Equity for the company is recorded at 133.99, with the Long-Term Debt to Total Capital now at 53.79.
Reflecting on the efficiency of the workforce at the company, Marathon Petroleum Corporation [MPC] managed to generate an average of -$190,535 per employee. Receivables Turnover for the company is 10.15 with a Total Asset Turnover recorded at a value of 0.75.Marathon Petroleum Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.40 and a Current Ratio set at 1.90.
MPC Stock EPS
With the latest financial reports released by the company, Marathon Petroleum Corporation posted -1.33/share EPS, while the average EPS was predicted by analysts to be reported at -1.75/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 24.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for MPC.
Marathon Petroleum Corporation [MPC] Insider Position Details
There are presently around $30,543 million, or 77.80% of MPC stock, in the hands of institutional investors. The top three institutional holders of MPC stocks are: BLACKROCK INC. with ownership of 65,057,565, which is approximately -5.911% of the company’s market cap and around 0.20% of the total institutional ownership; VANGUARD GROUP INC, holding 62,902,015 shares of the stock with an approximate value of $3.79 billion in MPC stocks shares; and STATE STREET CORP, currently with $2.59 billion in MPC stock with ownership of nearly 10.611% of the company’s market capitalization.
Positions in Marathon Petroleum Corporation stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 457 institutional holders increased their position in Marathon Petroleum Corporation [NYSE:MPC] by around 54,834,231 shares. Additionally, 433 investors decreased positions by around 42,893,301 shares, while 153 investors held positions by with 408,545,092 shares. The mentioned changes placed institutional holdings at 506,272,624 shares, according to the latest SEC report filing. MPC stock had 153 new institutional investments in for a total of 5,734,302 shares, while 75 institutional investors sold positions of 11,188,412 shares during the same period.