Zacks Investment Research lowered shares of Magellan Midstream Partners L.P. (NYSE:MMP) from a hold rating to a sell rating in a research report sent to investors on Tuesday, July 11th.

According to Zacks, “Considering Magellan Midstream's balance sheet pressure and the negative sentiment surrounding oil prices, we have turned bearish on the publicly traded partnership. Crude's historic decline has undoubtedly impacted the demand for transportation and storage services. While the midstream MLP has underperformed the Zacks categorized 'Oil/Gas Production Pipeline MLP' industry across the past three-month period, its debt-to-equity ratio of around 2 is almost double when compared to the industry average. We also need to factor in the delay in project completions and cost overruns. We further believe that MLP valuations will be largely disconnected from business fundamentals as long as the hoopla over falling crude prices continue. In the wake of weak industry sentiment and apprehensions of more punishing times ahead with future cash flows drying up, we see little reason for investors to hold the stock.”

Several other analysts have also weighed in on the company. Royal Bank Of Canada restated a hold rating and issued a $80.00 price objective on shares of Magellan Midstream Partners L.P. in a report on Thursday, April 13th. Credit Suisse Group upgraded Magellan Midstream Partners L.P. from an underperform rating to a neutral rating and upped their price objective for the company from $80.00 to $84.00 in a report on Thursday, May 4th. BidaskClub upgraded Magellan Midstream Partners L.P. from a sell rating to a hold rating in a report on Thursday, July 6th. Jefferies Group LLC initiated coverage on Magellan Midstream Partners L.P. in a report on Thursday, June 22nd. They set a hold rating and a $73.00 target price for the company. Finally, UBS AG reaffirmed a neutral rating and set a $82.00 target price (up from $81.00) on shares of Magellan Midstream Partners L.P. in a report on Thursday, March 23rd. Four research analysts have rated the stock with a sell rating, nine have issued a hold rating and six have given a buy rating to the stock. The company currently has an average rating of Hold and an average price target of $79.10.

Shares of Magellan Midstream Partners L.P. (NYSE MMP) opened at 69.14 on Tuesday. The stock has a market cap of $15.77 billion, a price-to-earnings ratio of 18.75 and a beta of 0.80. Magellan Midstream Partners L.P. has a 12-month low of $64.25 and a 12-month high of $81.77. The stock’s 50 day moving average is $70.09 and its 200-day moving average is $74.72.

Magellan Midstream Partners L.P. (NYSE:MMP) last announced its quarterly earnings data on Wednesday, August 2nd. The pipeline company reported $0.92 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.89 by $0.03. The business had revenue of $619.40 million during the quarter, compared to analyst estimates of $561.70 million. Magellan Midstream Partners L.P. had a return on equity of 41.81% and a net margin of 34.63%. The company’s revenue was up 19.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.82 earnings per share. Equities analysts anticipate that Magellan Midstream Partners L.P. will post $3.91 EPS for the current fiscal year.

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The company also recently announced a quarterly dividend, which will be paid on Monday, August 14th. Shareholders of record on Monday, July 31st will be given a $0.89 dividend. This is a positive change from Magellan Midstream Partners L.P.’s previous quarterly dividend of $0.84. This represents a $3.56 annualized dividend and a yield of 5.15%. The ex-dividend date is Thursday, July 27th. Magellan Midstream Partners L.P.’s dividend payout ratio is presently 96.74%.

In other Magellan Midstream Partners L.P. news, insider Douglas J. May sold 8,000 shares of the company’s stock in a transaction dated Wednesday, May 24th. The stock was sold at an average price of $75.00, for a total value of $600,000.00. Following the transaction, the insider now directly owns 27,599 shares of the company’s stock, valued at approximately $2,069,925. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Corporate insiders own 0.24% of the company’s stock.

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Founders Capital Management purchased a new position in shares of Magellan Midstream Partners L.P. during the first quarter valued at $109,000. Acropolis Investment Management LLC bought a new position in shares of Magellan Midstream Partners L.P. during the first quarter worth approximately $118,000. Catalyst Capital Advisors LLC raised its position in shares of Magellan Midstream Partners L.P. by 23.7% in the first quarter. Catalyst Capital Advisors LLC now owns 1,568 shares of the pipeline company’s stock worth $121,000 after buying an additional 300 shares in the last quarter. NEXT Financial Group Inc raised its position in shares of Magellan Midstream Partners L.P. by 7.5% in the second quarter. NEXT Financial Group Inc now owns 1,807 shares of the pipeline company’s stock worth $129,000 after buying an additional 126 shares in the last quarter. Finally, Independent Portfolio Consultants Inc. raised its position in shares of Magellan Midstream Partners L.P. by 4.6% in the second quarter. Independent Portfolio Consultants Inc. now owns 1,968 shares of the pipeline company’s stock worth $140,000 after buying an additional 87 shares in the last quarter. 62.87% of the stock is currently owned by institutional investors.

Magellan Midstream Partners L.P. Company Profile

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