The Case for and Against Marathon Petroleum Corporation (MPC)

Marathon Petroleum Corporation (MPC) is an interesting player in the Basic Materials space, with a focus on Oil & Gas Refining & Marketing. The stock has been active on the tape, currently trading at $80.71, up from yesterday’s close by 5.19%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Marathon Petroleum Corporation (MPC) currently trades with a market capitalization of $37.17 Billion. That value represents a market adjusting for revenues that have been growing by 15.83 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $2.48 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $1.73 on a per share basis this quarter. Perhaps, that suggests something about why 0.45% of the outstanding share supply is held by institutional investors.



Technical Analysis

Sometimes, we can understand most about a stock by simply looking at how it has been trading. Looking at the stock’s movement on the chart, Marathon Petroleum Corporation recorded a 52-week high of $83.27. It is now trading 2.56% off that level. The stock is trading $74.78 its 50-day moving average by -5.93%. The stock carved out a 52-week low down at $49.30.

In recent action, Marathon Petroleum Corporation (MPC) has made a move of +1.65% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 15.08, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.21% with $456.96 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of MPC.

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