Magellan Midstream Partners L.P. (MMP) shares are trading at higher $44.07 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $49.14.
To add more color to this target, the company’s high over the last year is $65.34 and the low is $22.02. Over the last 52 weeks, MMP is down -27.94% while the S&P 500 is up 15.91%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, MMP reported a profit of $502.14 million. Magellan Midstream Partners L.P. also saw revenues increase to $598.26 million. In addition, MMP has free cash flow of $468.94 million as of 09-2020. The company’s EBITDA came in at $338.42 million which compares well with its peers.
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MMP booked profit margins of 35.60%, its Return on Equity (ROE) is 36.40%, and its Return on Assets is 11.20%. All told, it is clear that, MMP needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. MMP has a short ratio of 4.37 and outstanding shares of 225.22M.
MMP has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.54 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 4.05. Magellan Midstream Partners L.P. MMP also noted assets of $8.14 billion at the end of the last quarter. Investors should also keep an eye on sector updates as MMP has historically followed its peers on positive news.
All told, Magellan Midstream Partners L.P. MMP has strung together solid data and demonstrated underlying fundamentals. At its current valuation, MMP represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Magellan Midstream Partners L.P. MMP is now commanding a market cap of 9.93B and a float of 223.03M. MMP is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of MMP stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in MMP, either long or short, and we have not been compensated for this article.