Reviewing The Case For Murphy Oil Corporation (MUR) Going Higher


    BlackRock Fund Advisors recently announced the acquisition of new stake in Murphy Oil Corporation (NYSE:MUR). The institutional investor has increased its shareholding in the Energy company by 3.40% to 12.55 million shares with purchase of 0.41 million shares. This fresh investment now brings its stake to 8.17% valued currently at $165.84 million. In addition, SSgA Funds Management, Inc. raised its holdings by 0.5 million to 7.6 million shares. And First Trust Advisors LP has lifted its position by 362.57% or 2.08 million shares – to 2.66 million shares.

    With over 2.5 million Murphy Oil Corporation (MUR) shares trading Tuesday and a closing price of $13.85 on the day, the dollar volume was approximately $34.66 million. The shares have shown a negative weekly performance of -7.30% and its price on 09/01/20 gained nearly 0.80%. Currently, there are 153.58M common shares owned by the public and among those 144.73M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 20 analysts who have offered their price forecasts for MUR have a consensus price objective of $15.50. The analysts have set the share’s price value over the next 12 months at a high of $22.00 and a low of $10.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Murphy Oil Corporation stock is 2.90 for the next 12 months. The average price target is -5.73% below its last price level and a downside to the estimated low will see the stock lose -38.5% over that period. But an upside of 37.05% will see the stock hit the forecast high price target while mean target price for the stock is $15.00.

    Insiders at the company have transacted a total of 104 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 55 of these insider trades were purchases, accounting for 1,081,004 shares. Insider sales of the common stock occurred on 49 occasions, with total insider shares sold totaling 356,135 shares.

    The top 3 mutual fund holders in Murphy Oil Corporation are Fidelity Low Priced Stock Fund, American Balanced Fund, and American Funds Fundamental Invest. Fidelity Low Priced Stock Fund owns 15.18 million shares of the company’s stock, all valued at over $200.59 million. The company bought an additional 2.95 million shares recently to bring their total holdings to about 9.89% of the shares outstanding. American Funds Fundamental Invest now owns shares totaling to 4.42% of the shares outstanding.

    Shares of Murphy Oil Corporation (NYSE: MUR) opened at $13.75, up $0.01 from a prior closing price of $13.74. However, the script later closed the day at $13.85, up 0.80%. The company’s stock has a 5-day price change of -7.30% and -1.98% over the past three months. MUR shares are trading -48.32% year to date (YTD), with the 12-month market performance down to -23.52% lower. It has a 12-month low price of $4.50 and touched a high of $28.12 over the same period. Currently, 2.5 million shares have been traded, compared to an average intraday trading volume of 3.33 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -5.41%, -0.72%, and -15.06% respectively.

    Institutional ownership of Murphy Oil Corporation (NYSE: MUR) 153.58M shares outstanding. Mutual fund holders own 62.64%, while other institutional holders and individual stakeholders account for 7.89% and 27.67% respectively.

    It has a market capitalization of $2.12B and a beta (3y monthly) value of 3.29. The earnings-per-share (ttm) stands at -$4.71. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.61% over the week and 4.68% over the month.

    Analysts forecast that Murphy Oil Corporation (MUR) will achieve an EPS of -$0.2 for the current quarter, -$0.06 for the next quarter and -$0.84 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.53 while analysts give the company a high EPS estimate of $0.46. Comparatively, EPS for the current quarter was $0.36 a year ago. Earnings per share for the fiscal year are expected to increase by 187.90%, and -14.50% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 20 brokerage firm advisors rate Murphy Oil Corporation (MUR) as a “Moderate Buy” at a consensus score of 2.90. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 13 of the 20 advise that investors “hold,” and 2 rated it as a “Sell.”

    Looking at the support for the MUR, a number of firms have released research notes about the stock. Truist stated their Buy rating for the stock in a research note on September 01, 2020, with the firm’s price target at $22. Johnson Rice coverage for the Murphy Oil Corporation (MUR) stock in a research note released on August 26, 2020 offered a Buy rating with a price target of $19. Credit Suisse was of a view on August 05, 2020 that the stock is Neutral, while Wolfe Research gave the stock Underperform rating on July 15, 2020, issuing a price target of. Goldman on their part issued Neutral rating on June 22, 2020.


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