Murphy USA (NYSE:MUSA) Shares Gap Down on Disappointing Earnings

Murphy USA Inc. (NYSE:MUSA) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $411.80, but opened at $385.00. Murphy USA shares last traded at $397.33, with a volume of 90,981 shares changing hands.

The specialty retailer reported $3.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.09 by ($0.97). Murphy USA had a return on equity of 63.93% and a net margin of 2.43%. The firm had revenue of $4.84 billion for the quarter, compared to the consensus estimate of $4.89 billion. During the same period last year, the company posted $4.80 earnings per share. The business’s revenue was down 4.6% compared to the same quarter last year.

Murphy USA Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 7th. Investors of record on Monday, February 26th were paid a $0.42 dividend. This is an increase from Murphy USA’s previous quarterly dividend of $0.41. This represents a $1.68 annualized dividend and a yield of 0.43%. The ex-dividend date of this dividend was Friday, February 23rd. Murphy USA’s dividend payout ratio (DPR) is 7.05%.

Analysts Set New Price Targets

Several research analysts have recently commented on MUSA shares. Wells Fargo & Company lifted their target price on Murphy USA from $440.00 to $460.00 and gave the stock an “overweight” rating in a research note on Friday, April 19th. Royal Bank of Canada raised their price target on Murphy USA from $382.00 to $408.00 and gave the company a “sector perform” rating in a report on Thursday, February 8th. Finally, Stephens reissued an “overweight” rating and issued a $470.00 price objective on shares of Murphy USA in a research report on Wednesday, April 10th. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $408.60.

Insider Activity at Murphy USA

In related news, SVP Robert J. Chumley sold 7,016 shares of the firm’s stock in a transaction dated Thursday, February 22nd. The shares were sold at an average price of $404.42, for a total transaction of $2,837,410.72. Following the transaction, the senior vice president now directly owns 6,448 shares of the company’s stock, valued at $2,607,700.16. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. In other news, Director Jeanne Linder Phillips sold 1,525 shares of the stock in a transaction on Friday, February 23rd. The stock was sold at an average price of $411.42, for a total transaction of $627,415.50. Following the sale, the director now directly owns 2,670 shares of the company’s stock, valued at approximately $1,098,491.40. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, SVP Robert J. Chumley sold 7,016 shares of the company’s stock in a transaction that occurred on Thursday, February 22nd. The stock was sold at an average price of $404.42, for a total transaction of $2,837,410.72. Following the sale, the senior vice president now directly owns 6,448 shares of the company’s stock, valued at approximately $2,607,700.16. The disclosure for this sale can be found here. Insiders sold 10,440 shares of company stock worth $4,244,582 in the last ninety days. 9.04% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of MUSA. Headinvest LLC bought a new position in shares of Murphy USA in the 3rd quarter valued at $138,000. Louisiana State Employees Retirement System bought a new stake in shares of Murphy USA during the fourth quarter worth about $1,925,000. UBS Group AG grew its holdings in shares of Murphy USA by 40.6% during the third quarter. UBS Group AG now owns 31,087 shares of the specialty retailer’s stock worth $10,623,000 after purchasing an additional 8,972 shares during the last quarter. Northern Trust Corp increased its stake in shares of Murphy USA by 1.9% in the third quarter. Northern Trust Corp now owns 164,400 shares of the specialty retailer’s stock valued at $56,180,000 after buying an additional 2,996 shares during the period. Finally, K.J. Harrison & Partners Inc bought a new position in Murphy USA in the 4th quarter valued at approximately $2,532,000. Institutional investors and hedge funds own 80.81% of the company’s stock.

Murphy USA Trading Down 1.0 %

The company has a current ratio of 0.95, a quick ratio of 0.56 and a debt-to-equity ratio of 2.15. The firm has a market capitalization of $8.17 billion, a price-to-earnings ratio of 16.47 and a beta of 0.77. The firm’s 50-day moving average is $414.96 and its 200 day moving average is $384.86.

Murphy USA Company Profile

Murphy USA Inc engages in marketing of retail motor fuel products and convenience merchandise. The company operates retail stores under the Murphy USA, Murphy Express, and QuickChek brands, as well as operates non-fuel convenience stores. It operates retail gasoline stores principally in the Southeast, Southwest, and Midwest United States.