On February 27, 2023 at 13:59:27 (ET) an unusually large $130.03K block of Call contracts in Magellan Midstream Partners (MMP) was sold, with a strike price of $55.00 / share, expiring in 53 days (on April 21, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.35 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in MMP options.

Analyst Price Forecast Suggests 10.60% Upside

As of February 26, 2023, the average one-year price target for Magellan Midstream Partners is $59.16. The forecasts range from a low of $51.51 to a high of $67.20. The average price target represents an increase of 10.60% from its latest reported closing price of $53.49.

The projected annual revenue for Magellan Midstream Partners is $3,110MM, a decrease of 2.82%. The projected annual EPS is $4.94, a decrease of 0.22%.

What is the Fund Sentiment?

There are 756 funds or institutions reporting positions in Magellan Midstream Partners. This is an increase of 26 owner(s) or 3.56% in the last quarter. Average portfolio weight of all funds dedicated to MMP is 0.60%, a decrease of 4.95%. Total shares owned by institutions increased in the last three months by 4.82% to 156,503K shares. The put/call ratio of MMP is 0.55, indicating a bullish outlook.

What are large shareholders doing?

AMLP – ALERIAN MLP ETF holds 13,677K shares representing 6.73% ownership of the company. In it’s prior filing, the firm reported owning 12,919K shares, representing an increase of 5.54%. The firm increased its portfolio allocation in MMP by 7.13% over the last quarter.

Alps Advisors holds 13,177K shares representing 6.48% ownership of the company. In it’s prior filing, the firm reported owning 13,173K shares, representing an increase of 0.03%. The firm decreased its portfolio allocation in MMP by 0.33% over the last quarter.

Invesco holds 7,844K shares representing 3.86% ownership of the company. In it’s prior filing, the firm reported owning 8,669K shares, representing a decrease of 10.52%. The firm decreased its portfolio allocation in MMP by 12.98% over the last quarter.

Janus Henderson Group holds 7,737K shares representing 3.81% ownership of the company. In it’s prior filing, the firm reported owning 7,849K shares, representing a decrease of 1.46%. The firm decreased its portfolio allocation in MMP by 65.21% over the last quarter.

JAENX – Janus Henderson Enterprise Fund Class T holds 7,148K shares representing 3.52% ownership of the company. No change in the last quarter.

Magellan Midstream Partners Declares $1.05 Dividend

On January 24, 2023 the company declared a regular quarterly dividend of $1.05 per share ($4.19 annualized). Shareholders of record as of February 7, 2023 received the payment on February 14, 2023. Previously, the company paid $1.05 per share.

At the current share price of $53.49 / share, the stock’s dividend yield is 7.83%. Looking back five years and taking a sample every week, the average dividend yield has been 7.89%, the lowest has been 5.30%, and the highest has been 14.79%. The standard deviation of yields is 1.70 (n=236).

The current dividend yield is 0.04 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.82. 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.

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.

This article originally appeared on Fintel

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