Fintel reports that on July 12, 2023, Goldman Sachs upgraded their outlook for Marathon Oil (MRO) from Sell to Neutral.

Analyst Price Forecast Suggests 35.29% Upside

As of July 6, 2023, the average one-year price target for Marathon Oil is 32.91. The forecasts range from a low of 25.25 to a high of $50.40. The average price target represents an increase of 35.29% from its latest reported closing price of 24.33.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Marathon Oil is 8,341MM, an increase of 12.93%. The projected annual non-GAAP EPS is 4.35.

Marathon Oil Declares $0.10 Dividend

On April 26, 2023, the company declared a regular quarterly dividend of $0.10 per share ($0.40 annualized). Shareholders of record as of May 17, 2023, received the payment on June 12, 2023. Previously, the company paid $0.10 per share.

At the current share price of $24.33 / share, the stock’s dividend yield is 1.64%.

Looking back five years and taking a sample every week, the average dividend yield has been 1.58%, the lowest has been 0.84%, and the highest has been 6.17%. The standard deviation of yields is 0.81 (n=217).

The current dividend yield is 0.08 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.09. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

What is the Fund Sentiment?

There are 1534 funds or institutions reporting positions in Marathon Oil. This is a decrease of 44 owner(s) or 2.79% in the last quarter. Average portfolio weight of all funds dedicated to MRO is 0.24%, a decrease of 17.40%. Total shares owned by institutions increased in the last three months by 0.07% to 545,603K shares. The put/call ratio of MRO is 0.79, indicating a bullish outlook.

What are Other Shareholders Doing?

 

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 19,475K shares representing 3.15% ownership of the company. In its prior filing, the firm reported owning 19,326K shares, representing an increase of 0.77%. The firm decreased its portfolio allocation in MRO by 17.64% over the last quarter.

XLE – The Energy Select Sector SPDR Fund holds 18,251K shares representing 2.96% ownership of the company. In its prior filing, the firm reported owning 18,383K shares, representing a decrease of 0.72%. The firm decreased its portfolio allocation in MRO by 5.50% over the last quarter.

Invesco holds 15,928K shares representing 2.58% ownership of the company. In its prior filing, the firm reported owning 16,937K shares, representing a decrease of 6.34%. The firm decreased its portfolio allocation in MRO by 92.66% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 14,819K shares representing 2.40% ownership of the company. In its prior filing, the firm reported owning 14,690K shares, representing an increase of 0.87%. The firm decreased its portfolio allocation in MRO by 17.20% over the last quarter.

VIMSX – Vanguard Mid-Cap Index Fund Investor Shares holds 14,707K shares representing 2.38% ownership of the company. In its prior filing, the firm reported owning 14,792K shares, representing a decrease of 0.58%. The firm decreased its portfolio allocation in MRO by 14.82% over the last quarter.

Marathon Oil Background Information
(This description is provided by the company.)

Marathon Oil Corporation is an American company engaged in hydrocarbon exploration. he company engages in the exploration, production, and marketing of crude oil and condensate, natural gas liquids, and natural gas; and the production and marketing of products manufactured from natural gas.

Additional reading:

• 2023 Form of Marathon Oil Corporation 2019 Incentive Compensation Plan Performance Unit Award Agreement 2023 – 2024 Performance Cycle for Section 16 Officers
• 2023 Form of Marathon Oil Corporation 2019 Incentive Compensation Plan Performance Unit Award Agreement 2023 – 2025 Performance Cycle for Section 16 Officers
• Marathon Oil Reports First Quarter 2023 Results Returned $400 Million to Shareholders and Completed Ensign Integration
• Summary Director Compensation Arrangement, effective 2023
• List of Significant Subsidiaries

This article originally appeared on Fintel

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