Are Analysts Chasing Marathon Oil Corporation (MRO) Like the Rest of Us

A handful of technical analysis tools are suggesting that Marathon Oil Corporation (NYSE:MRO) overall gets 72% Sell rating. The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the MRO’s short-term trajectory should know that short terms indicators for the stock averaged 60% Sell with an average daily trading volume over the past 20 days at 14527976 shares. MRO stock has overall a 0.5% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 13538552 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 11697819 shares, is 100% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $15.77. Below this, the next support is placed in the zone of $15.33. Till the time, the MRO stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 38.3 on daily chart, which may remain a cause for comfort. If the price breaks below $15.33 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $16.49 mark may result into a pull-back move towards $16.77 level.

Marathon Oil Corporation (MRO) is projected to climb by 53.88 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $29-month high price target. This represents a whopping 78.79 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $26, which represents a return potential of 60.3 percent when compared to the closing price of the stock of $16.22 on Thursday, December 06. The lowest price target for the stock is $18 — slightly more than 10.97 percent from MRO’s current share price.

Here’s a rundown of insider trading activity for sense of Marathon Oil Corporation (NYSE:MRO). The earliest insider trade took place on 09/14/2018. Little Thomas Mitchell parted with a total of 117.33 thousand shares of company at average share price of $20.69. The total for the sales was set at $2.43 million. After this transaction, the Executive VP – Operations account balance stood at 277.24 thousand shares. The stock lost -21.6 percent since that insider sale. On 05/17/2018, Tillman Lee M, President and CEO, sold 400 thousand shares at a price per share of $21.65. This removed 8.66 million shares from the insider’s fortune and the stock saw a -25.08 percent retreat in value since the news became public. This transaction left 708.26 thousand shares in the President and CEO account. On 05/16/2018, Wagner Patrick performed a sale transaction worth $1.13 million. This sale at $21.2 each has eliminated 53.33 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -23.49 percent decrease since the transaction was reported. The insider now is left with 138.2 thousand shares remaining in the account. Little Thomas Mitchell, who performs the Executive VP – Operations job, sold 21.29 thousand shares for $423.38 thousand. The disposal occurred on 05/07/2018 was priced at $19.89 per share. The share price plunged -18.45 percent since the reporting date. Little Thomas Mitchell now left with a stake of 277.24 thousand MRO stock worth $4.5 million after the insider selling.

MRO shares dropped -0.6 points or -3.57 percent on Thursday to $16.22 with a heavy trade volume of 18.988 million shares. After opening the session at $16.28, the shares went as high as $16.32 and as low as $15.6, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $13.8 billion and now has 848 million shares outstanding. Marathon Oil Corporation (MRO) stock has lost -13.22 percent of market value in 21 trading days.

Analysts at MKM Partners, assumed coverage of Marathon Oil Corporation (NYSE:MRO) with Buy recommendation, according to their opinion released on December 06. Wells Fargo analysts bumped their recommendation on MRO stock from Market Perform to Outperform in a separate flash note to investors on October 24. Analysts at Mizuho issued an upgrade from Neutral to Buy for the stock, in a research note that dated back to October 19.

MRO stock has a trailing 3-year beta of 2.46, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.76 a share in the trailing twelve months. The stock’s value has fallen -4.19 percent year to date (YTD) against a rise of 9.01 percent in 12 month’s time. The company’s shares still trade -32.98 percent away from its 1-year high of $24.20 and 13.67 percent up from 52-week low of $14.27. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Marathon Oil Corporation (MRO) are trading at a P/E ratio of 21.32 times earnings reported for the past 12 months. The industry MRO operates in has an average P/E of 16.71. Its P/E ratio went as low as 19.94X and as high as 26.88 over the 5-year span. Further, it is sporting a 2.35 on the Price-to-Sales ratio. Compare this with the industry average P/S of 99.8. 85.1 percent is the gross profit margin for Marathon Oil Corporation and operating margin sits at 24 percent. Along with this, the net profit margin is 11.6 percent.

MRO will be declaring its Q4 financial results on February 13. Analysts are forecasting revenue to climb 10.9 percent to $1.53B in the next fiscal quarter, while earnings are seen soaring by nearly 228.57 percent to $0.23 per share. History has shown that shares in Marathon Oil Corporation have gone down on 24 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.24 per share, better than the $0.21, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.67B, better than the $1.48B analysts expected. Earnings are estimated to increase by 60.1 percent this year, 49.63 percent next year and continue to increase by 19 percent annually for the next 5 years.