Magellan Midstream Partners (MMP) Rating Increased to Hold at Zacks Investment Research
According to Zacks, “Magellan Midstream boasts of an attractive portfolio of energy infrastructure assets that generate stable and recurring fee- and tariff-based revenues. The firm’s growing distributable cash flows and increasing payouts bode well. Management expects to generate DCF of around $1.14 billion this year and is targeting annual distribution growth of 5%. However, the weak outlook for MMP’s its crude oil transportation unit is a major 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. As it is, the partnership is reeling under high debt burden. As such, the stock warrants a cautious stance.”
A number of other brokerages have also recently weighed in on MMP. SunTrust Banks started coverage on shares of Magellan Midstream Partners in a research note on Friday, January 18th. They set a “hold” rating and a $65.00 price objective on the stock. ValuEngine upgraded shares of Magellan Midstream Partners from a “sell” rating to a “hold” rating in a research note on Monday, January 7th. Credit Suisse Group cut their price objective on shares of Magellan Midstream Partners from $76.00 to $68.00 and set a “neutral” rating on the stock in a research note on Monday, February 11th. Bank of America cut shares of Magellan Midstream Partners from a “buy” rating to a “neutral” rating and cut their price objective for the company from $69.00 to $62.00 in a research note on Wednesday, February 27th. Finally, Wolfe Research cut shares of Magellan Midstream Partners to an “underperform” rating and set a $56.00 price objective on the stock. in a research note on Friday, February 1st. One equities research analyst has rated the stock with a sell rating, twelve have assigned a hold rating and four have given a buy rating to the company. The stock has an average rating of “Hold” and a consensus price target of $69.43.
Magellan Midstream Partners (NYSE:MMP) last announced its quarterly earnings results on Thursday, January 31st. The pipeline company reported $1.03 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.16 by ($0.13). Magellan Midstream Partners had a net margin of 47.19% and a return on equity of 40.90%. The firm had revenue of $865.68 million for the quarter, compared to analyst estimates of $710.21 million. On average, analysts anticipate that Magellan Midstream Partners will post 4.04 earnings per share for the current year.
In other Magellan Midstream Partners news, Director James R. Montague sold 2,119 shares of the business’s stock in a transaction dated Thursday, March 7th. The shares were sold at an average price of $59.83, for a total value of $126,779.77. Following the sale, the director now directly owns 21,952 shares in the company, valued at $1,313,388.16. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Lisa J. Korner sold 6,958 shares of the business’s stock in a transaction dated Tuesday, February 19th. The stock was sold at an average price of $59.29, for a total transaction of $412,539.82. Following the completion of the sale, the insider now owns 74,517 shares in the company, valued at $4,418,112.93. The disclosure for this sale can be found here. Over the last quarter, insiders sold 43,696 shares of company stock worth $2,597,682. 0.26% of the stock is owned by company insiders.
A number of institutional investors have recently modified their holdings of MMP. Howe & Rusling Inc. raised its position in Magellan Midstream Partners by 155.1% in the fourth quarter. Howe & Rusling Inc. now owns 472 shares of the pipeline company’s stock worth $27,000 after acquiring an additional 287 shares in the last quarter. AdvisorNet Financial Inc raised its position in Magellan Midstream Partners by 132.8% in the fourth quarter. AdvisorNet Financial Inc now owns 533 shares of the pipeline company’s stock worth $30,000 after acquiring an additional 304 shares in the last quarter. Arlington Partners LLC bought a new stake in Magellan Midstream Partners in the fourth quarter worth about $40,000. Massey Quick Simon & CO. LLC raised its position in Magellan Midstream Partners by 308.6% in the first quarter. Massey Quick Simon & CO. LLC now owns 662 shares of the pipeline company’s stock worth $40,000 after acquiring an additional 500 shares in the last quarter. Finally, Bremer Trust National Association bought a new stake in Magellan Midstream Partners in the fourth quarter worth about $42,000. Hedge funds and other institutional investors own 66.71% of the company’s stock.
About Magellan Midstream Partners
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 diesel fuel, kerosene, heating oil, 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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