Murphy Oil Corporation (MUR) Looks Interesting In A Number Of Ways

MUR last reported earnings on November 07, 2018 when it released Sep-18 results that receded expectations. The company raked in $0.35 per share, -90.57% change on the same period last year. That was worse than consensus for $0.36. Revenue for the recent quarter stood at $674.8 million, up 35% on last year and above the $633.47 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $658 million to $739.8 million, which should be compared with $592.28 million generated last year. EPS is seen in a range of $0.35 to $0.89, against the $0.04 reported a year ago.

MUR’s 50 day simple moving average (SMA 50) price is $32.32 and its 200-day simple moving average (SMA 200) price is $30.61. The company’s stock currently has a total float of 162.65M shares. Its weekly volatility is hovering around 4.89% and felt 4.19% volatility in price over a month. On the upside, the share price will test short term resistance at around $32.23. On a downside, the stock is likely to find some support, which begins at $29.77. The failure to get near-term support could push it to $28.79.

The insider holding in Murphy Oil Corporation (MUR) stood at 0.8% while institutions hold 88.5%. Capital World Investors is the largest single holder among mutual funds with ownership of over 12.9M MUR shares as of June 30, with a market value of approx. $435.62M as of today. The second largest holder, Hotchkis & Wiley, with 12.34M shares which equates to $416.83M worth of the stock. At third is Richard Pzena, which stood pat with 7.84M shares, a 4.8% position in Murphy Oil Corporation, worth $264.77M.

Separately, it has been reported that multiple insider activity took place at Murphy Oil Corporation (MUR). Executive Vice President Coleman Eugene T sold 33,435 shares for $33,985 in transaction occurred on 2018/02/05. After making this transaction, the Executive Vice President owns a direct stake of 965,603 shares, worth $1,045,379, as per the last closing price. On 2017/11/20 Gardner John B, Vice President & Treasurer at MUR, dumped 3,783 shares at an average price of $27.84 per share. The selling total is valued at $11,074.

Director, Murphy Robert Madison had divested 6,325 shares for $2,626,979 through a trade on 2017/11/06. Following this activity, the insider holds 180,579 shares worth $80,805,874 as of recent close. Wall Street’s most bullish Murphy Oil Corporation (NYSE:MUR) analysts are predicting the share price to blow past $43 per share during the next 12 months. The current median share price forecast by them is $37, suggesting that the stock could increase 20.29% in that time frame. The average price target of $35.86 calls for a nearly 16.58% increase in the stock price.

It had seen a positive analyst call from Mizuho, which upgraded the stock from Underperform to Neutral on October 19. Analysts at NatAlliance Securities, shed their negative views on October 11 by lifting it fromHold to Buy. Analysts at Piper Jaffray, made their first call about the stock on September 28, recommending it is Neutral.

When looking at valuations, Murphy Oil Corporation (MUR) has a pricey P/E of 320.42x as compared to industry average of 15.31x. Moreover, it trades for 6.71 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.14x price/book and 2.47x price/sales. Compared to others, Murphy Oil Corporation is in a different league with regards to profitability, having net margins of -6.2%. To put some perspective around this, the industry’s average net margin is 16.98%. MUR’s ROE is -2.9%, which is also considerably worse than the industry’s ROE of 17.56%. It’s also very liquid in the near term, with a current ratio of 1.5. The stock has a debt/capital of 0.62.

Murphy Oil Corporation (NYSE:MUR) recently claimed $5.52B as the price has approached $30.76. There came a -3.36% decline with the closing bell on Thursday. The stock remained range bound between $30.2618 and $32.72. Trading activity significantly improved as the volume at ready counter increased to 4,050,536 shares versus 2,067,270 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,088,973 shares. The stock is now 26.12% above against its bear-market low of $24.39 on April 02, 2018. It has retreated -18.76% since it’s 52-week high of $36.53 reached in October. Now the market price is up 5.92% on the year and down -0.93% YTD.