Investors Purchase Large Volume of Put Options on Marathon Petroleum (NYSE:MPC)

Marathon Petroleum Co. (NYSE:MPC) saw unusually large options trading activity on Friday. Investors bought 9,616 put options on the stock. This represents an increase of approximately 113% compared to the average volume of 4,507 put options.

Marathon Petroleum Trading Up 0.9 %

Shares of MPC traded up $1.25 during trading hours on Friday, hitting $132.90. 1,138,003 shares of the stock were exchanged, compared to its average volume of 2,629,028. The business has a 50-day moving average of $152.74 and a 200-day moving average of $163.97. Marathon Petroleum has a fifty-two week low of $130.54 and a fifty-two week high of $221.11. The firm has a market capitalization of $42.71 billion, a P/E ratio of 10.53, a price-to-earnings-growth ratio of 2.67 and a beta of 1.39. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.23 and a quick ratio of 0.76.

Marathon Petroleum (NYSE:MPC) last posted its quarterly earnings results on Tuesday, November 5th. The oil and gas company reported $1.87 earnings per share for the quarter, topping analysts’ consensus estimates of $0.97 by $0.90. The business had revenue of $35.37 billion for 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%. The firm’s revenue for the quarter was down 14.9% on a year-over-year basis. During the same period in the prior year, the business earned $8.14 EPS. On average, research analysts expect that Marathon Petroleum will post 9.5 EPS for the current year.

Marathon Petroleum Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 10th. Stockholders of record on Wednesday, November 20th were issued a $0.91 dividend. The ex-dividend date of this dividend was Wednesday, November 20th. This represents a $3.64 annualized dividend and a dividend yield of 2.74%. This is an increase from Marathon Petroleum’s previous quarterly dividend of $0.83. Marathon Petroleum’s dividend payout ratio is currently 28.84%.

Marathon Petroleum announced that its Board of Directors has approved a stock repurchase program on Tuesday, November 5th that authorizes the company to repurchase $5.00 billion in outstanding shares. This repurchase authorization authorizes the oil and gas company to reacquire up to 10% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board believes its stock is undervalued.

Analyst Upgrades and Downgrades

MPC has been the topic of a number of recent research reports. JPMorgan Chase & Co. reduced their price objective on shares of Marathon Petroleum from $172.00 to $171.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 9th. Citigroup reduced their price target on shares of Marathon Petroleum from $172.00 to $167.00 and set a “neutral” rating on the stock in a research report on Thursday, October 10th. Tudor Pickering downgraded Marathon Petroleum from a “strong-buy” rating to a “strong sell” rating in a report on Monday, September 9th. Bank of America began coverage on Marathon Petroleum in a research note on Thursday, October 17th. They issued a “neutral” rating and a $174.00 price target on the stock. Finally, Mizuho decreased their target price on shares of Marathon Petroleum from $175.00 to $174.00 and set a “neutral” rating for the company in a research note on Monday. Two research analysts have rated the stock with a sell rating, six have given a hold rating, nine have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, Marathon Petroleum presently has an average rating of “Moderate Buy” and a consensus target price of $184.00.

Insider Transactions at Marathon Petroleum

In other news, Director Jeffrey C. Campbell acquired 6,000 shares of the company’s stock in a transaction dated Wednesday, December 4th. The stock was bought at an average price of $149.61 per share, with a total value of $897,660.00. Following the completion of the acquisition, 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 position. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.21% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Marathon Petroleum

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