Fintel reports that on August 16, 2023, Mizuho downgraded their outlook for Marathon Petroleum (NYSE:MPC) from Buy to Neutral.

Analyst Price Forecast Suggests 2.84% Upside

As of August 2, 2023, the average one-year price target for Marathon Petroleum is 146.68. The forecasts range from a low of 121.20 to a high of $173.25. The average price target represents an increase of 2.84% from its latest reported closing price of 142.62.

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The projected annual revenue for Marathon Petroleum is 142,064MM, a decrease of 9.81%. The projected annual non-GAAP EPS is 14.79.

Marathon Petroleum Declares $0.75 Dividend

On July 26, 2023 the company declared a regular quarterly dividend of $0.75 per share ($3.00 annualized). Shareholders of record as of August 16, 2023 will receive the payment on September 11, 2023. Previously, the company paid $0.75 per share.

At the current share price of $142.62 / share, the stock’s dividend yield is 2.10%.

Looking back five years and taking a sample every week, the average dividend yield has been 3.95%, the lowest has been 2.02%, and the highest has been 13.96%. The standard deviation of yields is 1.81 (n=235).

The current dividend yield is 1.02 standard deviations below 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.

The company’s 3-Year dividend growth rate is 0.29%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 2323 funds or institutions reporting positions in Marathon Petroleum. This is a decrease of 43 owner(s) or 1.82% in the last quarter. Average portfolio weight of all funds dedicated to MPC is 0.41%, a decrease of 7.68%. Total shares owned by institutions decreased in the last three months by 6.38% to 343,069K shares. The put/call ratio of MPC is 0.98, indicating a bullish outlook.

What are Other Shareholders Doing?

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 13,794K shares representing 3.45% ownership of the company. In it’s prior filing, the firm reported owning 14,245K shares, representing a decrease of 3.27%. The firm increased its portfolio allocation in MPC by 3.58% over the last quarter.

XLE – The Energy Select Sector SPDR Fund holds 13,048K shares representing 3.26% ownership of the company. In it’s prior filing, the firm reported owning 13,566K shares, representing a decrease of 3.97%. The firm increased its portfolio allocation in MPC by 19.81% over the last quarter.

Elliott Investment Management holds 11,065K shares representing 2.77% ownership of the company. No change in the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 10,594K shares representing 2.65% ownership of the company. In it’s prior filing, the firm reported owning 10,834K shares, representing a decrease of 2.27%. The firm increased its portfolio allocation in MPC by 5.05% over the last quarter.

Geode Capital Management holds 8,215K shares representing 2.05% ownership of the company. In it’s prior filing, the firm reported owning 8,435K shares, representing a decrease of 2.68%. The firm increased its portfolio allocation in MPC by 4.45% over the last quarter.

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

Marathon Petroleum Corporation (MPC) is a leading, integrated, downstream energy company headquartered in Findlay, Ohio. The company operates the nation’s largest refining system. MPC’s marketing system includes branded locations across the United States, including Marathon brand retail outlets. Speedway LLC, an MPC subsidiary, owns and operates retail convenience stores across the United States. MPC also owns the general partner and majority limited partner interest in MPLX LP, a midstream company that owns and operates gathering, processing, and fractionation assets, as well as crude oil and light product transportation and logistics infrastructure.

This article originally appeared on Fintel

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