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Marathon Stock Runs Higher on Quarterly Report

The company also reported higher revenue than anticipated

Deputy Editor
May 5, 2020 at 10:15 AM
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The shares of Marathon Petroleum Corp (NYSE:MPC) are up 1.4% at $31.96 this morning after reporting slimmer-than-expected, first-quarter losses of 16 cents per share, compared to analysts' anticipated losses of 31 cents per share. The firm's reported revenue of $24.08 billion also beat estimates. Meanwhile, Marathon said it would cut spending by $1.4 billion, or 30%, as the coronavirus continues to play a heavy role in the dwindling demand for oil and gas.  

MPC has seen a slow rebound since its eight-year low of $15.26 on March 19, though pressure at the 60-day moving average is keeping this rally in check. Regardless, Marathon stock is up 60% in the last month. However, it is still down 47% year-to-date. 

Sentiment surrounding MPC is optimistic, with eight out of 12 analysts sporting a "buy" or "strong buy" rating, while the remaining four say "hold." Meanwhile, the 12-month consensus price target of $43.29 is a 35.5% premium to current levels. 

It's also worth noting that MPC's Schaeffer's Volatility Scorecard (SVS) sits at a high 97 (out of 100), showing that the stock has tended to exceed options traders' volatility expectations in the past year -- a good thing for options buyers. 

 

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