Unusual Put Option Trade in Marathon Oil Worth $350.34K

On May 2, 2023 at 10:55:16 ET an unusually large $350.34K block of Put contracts in Marathon Oil (MRO) was sold, with a strike price of $23.00 / share, expiring in 17 day(s) (on May 19, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 3.48 sigmas above the mean, placing it in the 99.97th percentile of all recent large trades made in MRO options.

This trade was first picked up on Fintel’s real time Options Flow tool, where unusual option trades are highlighted.

What is the Fund Sentiment?

There are 1564 funds or institutions reporting positions in Marathon Oil. This is an increase of 58 owner(s) or 3.85% in the last quarter. Average portfolio weight of all funds dedicated to MRO is 0.29%, an increase of 2.64%. Total shares owned by institutions decreased in the last three months by 1.73% to 541,001K shares. The put/call ratio of MRO is 0.58, indicating a bullish outlook.

Analyst Price Forecast Suggests 41.91% Upside

As of April 24, 2023, the average one-year price target for Marathon Oil is $34.11. The forecasts range from a low of $25.25 to a high of $50.40. The average price target represents an increase of 41.91% from its latest reported closing price of $24.04.

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

The projected annual revenue for Marathon Oil is $8,341MM, an increase of 10.11%. The projected annual non-GAAP EPS is $4.35.

What are Other Shareholders Doing?

EQ ADVISORS TRUST – EQ holds 51K shares representing 0.01% ownership of the company. No change in the last quarter.

MML Series Investment Fund II – MML Equity Fund Initial Class holds 42K shares representing 0.01% ownership of the company. In it’s prior filing, the firm reported owning 43K shares, representing a decrease of 2.39%. The firm increased its portfolio allocation in MRO by 4.75% over the last quarter.

Meeder Advisory Services holds 9K shares representing 0.00% ownership of the company.

Panagora Asset Management holds 1,692K shares representing 0.27% ownership of the company. In it’s prior filing, the firm reported owning 1,646K shares, representing an increase of 2.71%. The firm increased its portfolio allocation in MRO by 16.53% over the last quarter.

First National Bank Of Omaha holds 56K shares representing 0.01% ownership of the company. In it’s prior filing, the firm reported owning 48K shares, representing an increase of 14.39%. The firm decreased its portfolio allocation in MRO by 99.87% over the last quarter.

Marathon Oil Declares $0.10 Dividend

On April 26, 2023 the company declared a regular quarterly dividend of $0.10 per share ($0.40 annualized). Shareholders of record as of May 17, 2023 will receive the payment on June 12, 2023. Previously, the company paid $0.10 per share.

At the current share price of $24.04 / share, the stock’s dividend yield is 1.66%. Looking back five years and taking a sample every week, the average dividend yield has been 1.55%, the lowest has been 0.84%, and the highest has been 6.17%. The standard deviation of yields is 0.82 (n=218).

The current dividend yield is 0.14 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.07. 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 1.00%, demonstrating that it has increased its dividend over time.

Marathon Oil Background Information
(This description is provided by the company.)

Marathon Oil Corporation is an American company engaged in hydrocarbon exploration. he company engages in the exploration, production, and marketing of crude oil and condensate, natural gas liquids, and natural gas; and the production and marketing of products manufactured from natural gas.

See all Marathon Oil regulatory filings.

This article originally appeared on Fintel

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