RBC Capital Downgrades Magellan Midstream Partners (MMP)

Fintel reports that on May 17, 2023, RBC Capital downgraded their outlook for Magellan Midstream Partners (NYSE:MMP) from Outperform to Sector Perform .

Analyst Price Forecast Suggests 4.75% Downside

As of May 11, 2023, the average one-year price target for Magellan Midstream Partners is 59.08. The forecasts range from a low of 53.53 to a high of $67.20. The average price target represents a decrease of 4.75% from its latest reported closing price of 62.02.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Magellan Midstream Partners is 3,110MM, a decrease of 8.41%. The projected annual non-GAAP EPS is 4.94.

Magellan Midstream Partners Declares $1.05 Dividend

On April 27, 2023 the company declared a regular quarterly dividend of $1.05 per share ($4.19 annualized). Shareholders of record as of May 8, 2023 received the payment on May 15, 2023. Previously, the company paid $1.05 per share.

At the current share price of $62.02 / share, the stock's dividend yield is 6.76%.

Looking back five years and taking a sample every week, the average dividend yield has been 7.99%, the lowest has been 5.30%, and the highest has been 14.79%. The standard deviation of yields is 1.64 (n=236).

The current dividend yield is 0.75 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.74. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.02%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 753 funds or institutions reporting positions in Magellan Midstream Partners. This is a decrease of 1 owner(s) or 0.13% in the last quarter. Average portfolio weight of all funds dedicated to MMP is 0.70%, an increase of 17.98%. Total shares owned by institutions decreased in the last three months by 2.79% to 150,626K shares. MMP / Magellan Midstream Partners L.P. Put/Call Ratios The put/call ratio of MMP is 0.57, indicating a bullish outlook.

What are Other Shareholders Doing?

MMP / Magellan Midstream Partners L.P. Shares Held by Institutions

Alps Advisors holds 15,469K shares representing 7.65% ownership of the company. In it's prior filing, the firm reported owning 13,177K shares, representing an increase of 14.82%. The firm increased its portfolio allocation in MMP by 24.64% over the last quarter.

AMLP - ALERIAN MLP ETF holds 12,976K shares representing 6.42% ownership of the company. In it's prior filing, the firm reported owning 13,677K shares, representing a decrease of 5.40%. The firm decreased its portfolio allocation in MMP by 1.28% over the last quarter.

Janus Henderson Group holds 7,737K shares representing 3.83% ownership of the company. No change in the last quarter.

Invesco holds 7,642K shares representing 3.78% ownership of the company. In it's prior filing, the firm reported owning 7,844K shares, representing a decrease of 2.65%. The firm decreased its portfolio allocation in MMP by 90.72% over the last quarter.

JAENX - Janus Henderson Enterprise Fund Class T holds 7,148K shares representing 3.54% ownership of the company. No change in the last quarter.

Magellan Midstream Partners Background Information
(This description is provided by the company.)

Magellan Midstream Partners, L.P. is a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil. The partnership owns the longest refined petroleum products pipeline system in the country, with access to nearly 50% of the nation's refining capacity, and can store more than 100 million barrels of petroleum products such as gasoline, diesel fuel and crude oil.

Key filings for this company:

This story originally appeared on Fintel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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