Earnings

Are Marathon Petroleum Corporation (MPC)’s Recent Ownership and Insider Trends a Sign of Things to Come?

Recent insider trends for Marathon Petroleum Corporation (NYSE:MPC) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of MPC, the data has some interesting implications for where the stock might be headed.

Institutions own 80.31% of Marathon Petroleum Corporation (MPC)’s shares. The total value of these holdings, in millions, is $21,635. Among active positions in the latest quarter, 425 holders increased their positions by a total of 44.24 million shares, 375 holders decreased the positions by a total of 55.58 million shares, and 134 holders held their positions. This works out to a net decrease in ownership of 11.34 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 92 holders initiated new positions by a total of 6.48 million shares and 65 holders exited their positions by a total of 16.1 million shares. This nets out to a decrease of 9.62 million shares and is another bearish sign for MPC.

In the last three months, insiders executed a total of 12 trades. 10 of these were buys and 2 were sells. Insider ownership increased by a total of 3548 shares, which suggests that MPC’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 65 buys and 25 sells, and ownership decreased by a net of 37651 shares.



Short interest, or the number of a stock’s tradable shares currently being shorted, is another metric investors use to get a pulse on sentiment. Marathon Petroleum Corporation (NYSE:MPC)’s short interest is 6.45 million shares, or 1.28% of the float. This represents a decrease of -12% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.

Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for MPC. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that MPC is a Weak sell, which implies that MPC is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Marathon Petroleum Corporation (NYSE:MPC) is overvalued.

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