Marathon Oil (NYSE:MRO) Downgraded by Zacks Investment Research

Marathon Oil (NYSE:MROGet Rating) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Tuesday, Zacks.com reports. They currently have a $38.00 price objective on the oil and gas producer’s stock. Zacks Investment Research‘s price objective would indicate a potential upside of 18.53% from the company’s current price.

According to Zacks, “Marathon Oil shares have outperformed the Zacks Oil & Gas U.S. Exploration & Production industry over the past year (+131.1% versus +73.4%) and still have plenty of upside potential. Marathon’s robust operational metrics suggest strong long-term cash flows that should support further price appreciation. The wells drilled by Marathon have extremely low breakeven costs and need oil prices of just $35 a barrel to be profitable. Despite pivoting towards a flat production profile this year, we expect revenue to rise around 39% due to the favorable industry trends. Our EPS projection indicates a 151.3% improvement this year. Further, Marathon’s major debt maturities mostly fall after 2025, eliminating any possible risks on this front in the near term. Therefore, we maintain our Outperform recommendation on the upstream energy firm.”

Other analysts have also recently issued reports about the stock. Royal Bank of Canada increased their target price on shares of Marathon Oil from $28.00 to $30.00 and gave the stock an “outperform” rating in a research note on Wednesday, March 30th. Credit Suisse Group raised their price objective on shares of Marathon Oil from $19.00 to $21.00 and gave the company a “neutral” rating in a research report on Thursday, February 17th. StockNews.com started coverage on shares of Marathon Oil in a research report on Thursday, March 31st. They set a “buy” rating on the stock. Truist Financial raised their price objective on shares of Marathon Oil from $34.00 to $41.00 in a research report on Thursday, April 21st. Finally, Susquehanna upgraded shares of Marathon Oil from a “neutral” rating to a “positive” rating and set a $32.00 price objective on the stock in a research report on Monday, April 25th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average target price of $31.25.

Shares of MRO stock traded up $0.65 during trading on Tuesday, reaching $32.06. 168,663 shares of the company’s stock traded hands, compared to its average volume of 21,512,092. The company has a market capitalization of $22.69 billion, a P/E ratio of 11.17, a PEG ratio of 0.45 and a beta of 2.56. The company has a current ratio of 1.10, a quick ratio of 1.06 and a debt-to-equity ratio of 0.34. The firm’s 50-day moving average is $26.80 and its 200 day moving average is $22.02. Marathon Oil has a 1 year low of $10.41 and a 1 year high of $33.24.

Marathon Oil (NYSE:MROGet Rating) last posted its earnings results on Wednesday, May 4th. The oil and gas producer reported $1.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.98 by $0.04. Marathon Oil had a net margin of 35.01% and a return on equity of 16.78%. The business had revenue of $1.75 billion for the quarter, compared to analysts’ expectations of $1.83 billion. During the same period in the prior year, the company posted $0.21 EPS. The business’s revenue for the quarter was up 63.7% compared to the same quarter last year. As a group, sell-side analysts predict that Marathon Oil will post 4.94 earnings per share for the current fiscal year.

In related news, insider Patrick Wagner sold 13,537 shares of the business’s stock in a transaction dated Monday, March 21st. The shares were sold at an average price of $24.89, for a total transaction of $336,935.93. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Michael A. Henderson sold 91,306 shares of the business’s stock in a transaction dated Tuesday, March 22nd. The stock was sold at an average price of $24.73, for a total transaction of $2,257,997.38. The disclosure for this sale can be found here. Insiders sold 793,124 shares of company stock worth $20,492,948 in the last 90 days. Corporate insiders own 0.52% of the company’s stock.

A number of large investors have recently bought and sold shares of MRO. Arkadios Wealth Advisors lifted its stake in shares of Marathon Oil by 1.2% in the first quarter. Arkadios Wealth Advisors now owns 35,200 shares of the oil and gas producer’s stock worth $884,000 after buying an additional 422 shares in the last quarter. PFG Advisors lifted its stake in shares of Marathon Oil by 4.0% in the first quarter. PFG Advisors now owns 12,214 shares of the oil and gas producer’s stock worth $307,000 after buying an additional 466 shares in the last quarter. Stonebridge Capital Advisors LLC lifted its stake in shares of Marathon Oil by 41.3% in the first quarter. Stonebridge Capital Advisors LLC now owns 1,679 shares of the oil and gas producer’s stock worth $42,000 after buying an additional 491 shares in the last quarter. Hillsdale Investment Management Inc. lifted its stake in shares of Marathon Oil by 1.0% in the fourth quarter. Hillsdale Investment Management Inc. now owns 49,000 shares of the oil and gas producer’s stock worth $805,000 after buying an additional 500 shares in the last quarter. Finally, High Net Worth Advisory Group LLC lifted its stake in shares of Marathon Oil by 50.0% in the first quarter. High Net Worth Advisory Group LLC now owns 1,500 shares of the oil and gas producer’s stock worth $38,000 after buying an additional 500 shares in the last quarter. 79.19% of the stock is currently owned by institutional investors and hedge funds.

About Marathon Oil (Get Rating)

Marathon Oil Corporation operates as an independent exploration and production company in the United States and internationally. The company engages in the exploration, production, and marketing of crude oil and condensate, natural gas liquids, and natural gas; and the production and marketing of products manufactured from natural gas, such as liquefied natural gas and methanol.

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