Magellan Midstream Partners (NYSE:MMP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Friday.
According to Zacks, “Magellan Midstream boasts of an attractive portfolio of energy infrastructure assets that generate stable and recurring fee-and tariff-based revenues. Apart from reporting higher-than-expected third-quarter earnings, Magellan Midstream generated robust distributable cash flow in the period. Driven by robust results, the firm lifted its DCF and EPS guidance, boosting further optimism surrounding the stock. However, MMP's debt-to-capital ratio of around 60% is a concern. The delay in project completions and cost overruns need to be factored in as well, while MLP valuations will be largely disconnected from business fundamentals as long as the hoopla over the tax policy change by FERC continues. The interplay of these factors account for the conservative investment thesis.”
Several other analysts also recently commented on the company. ValuEngine downgraded Magellan Midstream Partners from a “hold” rating to a “sell” rating in a research note on Friday, September 14th. Goldman Sachs Group downgraded Magellan Midstream Partners from a “buy” rating to a “neutral” rating and set a $76.00 target price for the company. in a research note on Monday, October 8th. Stifel Nicolaus raised their target price on Magellan Midstream Partners from $71.00 to $73.00 and gave the company a “hold” rating in a research note on Friday, August 3rd. Barclays raised their target price on Magellan Midstream Partners from $72.00 to $74.00 and gave the company an “equal weight” rating in a research note on Monday, August 6th. Finally, Wells Fargo & Co reduced their target price on Magellan Midstream Partners from $74.00 to $72.00 and set a “market perform” rating for the company in a research note on Tuesday, November 6th. Three research analysts have rated the stock with a sell rating, eleven have issued a hold rating and five have given a buy rating to the company’s stock. Magellan Midstream Partners has a consensus rating of “Hold” and a consensus price target of $74.00.
MMP stock opened at $63.16 on Friday. Magellan Midstream Partners has a 1-year low of $54.82 and a 1-year high of $75.82. The company has a debt-to-equity ratio of 1.46, a current ratio of 0.60 and a quick ratio of 0.44. The stock has a market capitalization of $14.41 billion, a PE ratio of 14.90, a price-to-earnings-growth ratio of 2.44 and a beta of 0.82.
Magellan Midstream Partners (NYSE:MMP) last posted its quarterly earnings data on Thursday, November 1st. The pipeline company reported $1.10 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.03 by $0.07. Magellan Midstream Partners had a return on equity of 43.31% and a net margin of 47.75%. The firm had revenue of $638.00 million during the quarter, compared to analyst estimates of $621.97 million. During the same period last year, the company posted $0.97 EPS. The business’s quarterly revenue was up 11.4% on a year-over-year basis. Analysts expect that Magellan Midstream Partners will post 4.31 earnings per share for the current year.
In other Magellan Midstream Partners news, SVP Jeff R. Selvidge sold 5,500 shares of Magellan Midstream Partners stock in a transaction dated Thursday, September 20th. The stock was sold at an average price of $68.70, for a total transaction of $377,850.00. Following the completion of the transaction, the senior vice president now owns 20,380 shares in the company, valued at approximately $1,400,106. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Douglas J. May sold 5,000 shares of Magellan Midstream Partners stock in a transaction dated Thursday, September 20th. The shares were sold at an average price of $68.69, for a total value of $343,450.00. Following the transaction, the insider now owns 33,000 shares of the company’s stock, valued at approximately $2,266,770. The disclosure for this sale can be found here. Insiders have sold a total of 40,500 shares of company stock valued at $2,786,500 in the last quarter. Company insiders own 0.26% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in MMP. Tortoise Capital Advisors L.L.C. boosted its stake in Magellan Midstream Partners by 12.1% during the 3rd quarter. Tortoise Capital Advisors L.L.C. now owns 16,823,215 shares of the pipeline company’s stock valued at $1,139,268,000 after purchasing an additional 1,822,186 shares during the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS acquired a new position in Magellan Midstream Partners during the 2nd quarter valued at about $119,556,000. Mirae Asset Global Investments Co. Ltd. acquired a new position in Magellan Midstream Partners during the 3rd quarter valued at about $88,778,000. Virtus ETF Advisers LLC acquired a new position in Magellan Midstream Partners during the 3rd quarter valued at about $35,875,000. Finally, Wells Fargo & Company MN boosted its stake in Magellan Midstream Partners by 42.4% during the 3rd quarter. Wells Fargo & Company MN now owns 1,348,835 shares of the pipeline company’s stock valued at $91,342,000 after purchasing an additional 401,929 shares during the last quarter. Institutional investors and hedge funds own 63.29% of the company’s stock.
Magellan Midstream Partners Company Profile
Magellan Midstream Partners, L.P. engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. The company operates through Refined Products, Crude Oil, and Marine Storage segments. It operates refined products pipeline that transports gasoline, distillates, aviation fuels, and liquefied petroleum gases for independent refiners and integrated oil companies, wholesalers, retailers, traders, railroads, airlines, bio-fuel producers, and regional farm cooperatives; and provides services, including terminalling, ethanol and biodiesel unloading and loading, additive injection, custom blending, laboratory testing, and data services to shippers.
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