According to Zacks, “Magellan Midstream boasts of an attractive portfolio of energy infrastructure assets that generate stable and recurring fee- and tariff-based revenues. The firm’s growing distributable cash flows and increasing payouts bode well. Management expects to generate DCF of around $1.14 billion this year and is targeting annual distribution growth of 5%. However, the weak outlook for MMP’s its crude oil transportation unit is a major concern. The delay in project completions and cost overruns need to be factored in as well, while MLP valuations will be largely disconnected from business fundamentals as long as the hoopla over the tax policy change by FERC continues. As it is, the partnership is reeling under high debt burden. As such, the stock warrants a cautious stance.”
MMP has been the subject of several other reports. Jefferies Financial Group raised shares of Magellan Midstream Partners from a hold rating to a buy rating in a research report on Thursday, December 20th. Evercore ISI initiated coverage on shares of Magellan Midstream Partners in a research report on Tuesday, February 5th. They issued an outperform rating for the company. Wolfe Research cut shares of Magellan Midstream Partners to an underperform rating and set a $56.00 target price for the company. in a research report on Friday, February 1st. Credit Suisse Group dropped their target price on shares of Magellan Midstream Partners from $76.00 to $68.00 and set a neutral rating for the company in a research report on Monday, February 11th. Finally, SunTrust Banks initiated coverage on shares of Magellan Midstream Partners in a research report on Friday, January 18th. They issued a hold rating and a $65.00 target price for the company. One investment analyst has rated the stock with a sell rating, twelve have assigned a hold rating and four have assigned a buy rating to the company. The stock currently has an average rating of Hold and an average price target of $69.43.
Magellan Midstream Partners (NYSE:MMP) last announced its quarterly earnings results on Thursday, January 31st. The pipeline company reported $1.03 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $1.16 by ($0.13). Magellan Midstream Partners had a net margin of 47.19% and a return on equity of 40.90%. The firm had revenue of $865.68 million for the quarter, compared to analysts’ expectations of $710.21 million. As a group, equities research analysts forecast that Magellan Midstream Partners will post 4.04 EPS for the current fiscal year.
In related news, CEO Michael N. Mears sold 30,000 shares of Magellan Midstream Partners stock in a transaction dated Tuesday, February 19th. The shares were sold at an average price of $59.35, for a total transaction of $1,780,500.00. Following the completion of the transaction, the chief executive officer now directly owns 183,185 shares of the company’s stock, valued at approximately $10,872,029.75. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director James R. Montague sold 2,119 shares of Magellan Midstream Partners stock in a transaction dated Thursday, March 7th. The shares were sold at an average price of $59.83, for a total transaction of $126,779.77. Following the transaction, the director now directly owns 21,952 shares of the company’s stock, valued at $1,313,388.16. The disclosure for this sale can be found here. Over the last three months, insiders have sold 43,696 shares of company stock valued at $2,597,682. 0.26% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Tortoise Capital Advisors L.L.C. lifted its position in Magellan Midstream Partners by 12.1% during the 3rd quarter. Tortoise Capital Advisors L.L.C. now owns 16,823,215 shares of the pipeline company’s stock valued at $1,139,268,000 after acquiring an additional 1,822,186 shares during the period. Alps Advisors Inc. lifted its position in Magellan Midstream Partners by 2.3% during the 4th quarter. Alps Advisors Inc. now owns 14,930,399 shares of the pipeline company’s stock valued at $851,929,000 after acquiring an additional 329,367 shares during the period. Harvest Fund Advisors LLC lifted its position in Magellan Midstream Partners by 3.7% during the 4th quarter. Harvest Fund Advisors LLC now owns 7,561,427 shares of the pipeline company’s stock valued at $431,455,000 after acquiring an additional 267,644 shares during the period. Energy Income Partners LLC lifted its position in Magellan Midstream Partners by 19.3% during the 4th quarter. Energy Income Partners LLC now owns 5,579,413 shares of the pipeline company’s stock valued at $318,361,000 after acquiring an additional 902,646 shares during the period. Finally, Chickasaw Capital Management LLC lifted its position in Magellan Midstream Partners by 5.6% during the 1st quarter. Chickasaw Capital Management LLC now owns 2,645,062 shares of the pipeline company’s stock valued at $160,370,000 after acquiring an additional 140,483 shares during the period. 66.71% of the stock is owned by institutional investors.
About Magellan Midstream Partners
Magellan Midstream Partners, L.P. engages in the transportation, storage, and distribution of refined petroleum products and crude oil in the United States. The company operates through Refined Products, Crude Oil, and Marine Storage segments. It operates refined products pipeline that transports gasoline, distillates diesel fuel, kerosene, heating oil, aviation fuels, and liquefied petroleum gases for independent refiners and integrated oil companies, wholesalers, retailers, traders, railroads, airlines, bio-fuel producers, and regional farm cooperatives; and provides services, including terminalling, ethanol and biodiesel unloading and loading, additive injection, custom blending, laboratory testing, and data services to shippers.
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