Murphy USA (NYSE:MUSA) Shares Gap Up – Should You Buy?

Murphy USA Inc. (NYSE:MUSA) gapped up prior to trading on Wednesday . The stock had previously closed at $538.87, but opened at $565.81. Murphy USA shares last traded at $550.3340, with a volume of 27,829 shares traded.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. Royal Bank Of Canada boosted their price objective on shares of Murphy USA from $510.00 to $517.00 and gave the stock a “sector perform” rating in a report on Thursday, April 30th. KeyCorp increased their target price on shares of Murphy USA from $600.00 to $680.00 and gave the company an “overweight” rating in a research note on Friday, June 12th. Bank of America raised Murphy USA from an “underperform” rating to a “neutral” rating and lifted their target price for the stock from $350.00 to $550.00 in a research report on Thursday, April 23rd. Zacks Research lowered Murphy USA from a “strong-buy” rating to a “hold” rating in a research note on Monday, June 22nd. Finally, Wells Fargo & Company upped their price target on Murphy USA from $450.00 to $520.00 and gave the company an “equal weight” rating in a report on Friday, May 1st. Five equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $573.88.

Murphy USA Price Performance

The company has a debt-to-equity ratio of 3.24, a current ratio of 0.83 and a quick ratio of 0.48. The stock’s 50 day simple moving average is $551.20 and its two-hundred day simple moving average is $475.64. The stock has a market cap of $10.31 billion, a price-to-earnings ratio of 19.31, a P/E/G ratio of 1.76 and a beta of 0.30.

Murphy USA (NYSE:MUSA) last announced its quarterly earnings results on Wednesday, April 29th. The specialty retailer reported $7.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.37 by $1.91. Murphy USA had a net margin of 2.81% and a return on equity of 91.05%. The firm had revenue of $4.82 billion for the quarter, compared to analyst estimates of $4.70 billion. During the same quarter in the previous year, the firm posted $2.63 EPS. The business’s revenue for the quarter was up 6.5% on a year-over-year basis. On average, analysts forecast that Murphy USA Inc. will post 32.3 earnings per share for the current fiscal year.

Murphy USA Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 1st. Stockholders of record on Monday, May 18th were given a dividend of $0.64 per share. This is an increase from Murphy USA’s previous quarterly dividend of $0.63. The ex-dividend date was Monday, May 18th. This represents a $2.56 annualized dividend and a dividend yield of 0.5%. Murphy USA’s dividend payout ratio (DPR) is presently 8.85%.

Insiders Place Their Bets

In related news, Director Robert Madison Murphy sold 41,500 shares of the stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $596.96, for a total value of $24,773,840.00. Following the completion of the transaction, the director owned 342,212 shares of the company’s stock, valued at $204,286,875.52. This represents a 10.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Scott G. Woodward sold 158 shares of the stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $600.50, for a total transaction of $94,879.00. Following the completion of the transaction, the senior vice president directly owned 476 shares of the company’s stock, valued at $285,838. This trade represents a 24.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 46,225 shares of company stock valued at $27,363,392 over the last 90 days. Company insiders own 9.02% of the company’s stock.

Hedge Funds Weigh In On Murphy USA

Hedge funds have recently modified their holdings of the stock. MassMutual Private Wealth & Trust FSB lifted its position in shares of Murphy USA by 82.4% during the 4th quarter. MassMutual Private Wealth & Trust FSB now owns 62 shares of the specialty retailer’s stock worth $25,000 after buying an additional 28 shares during the period. Huntington National Bank grew its position in Murphy USA by 106.7% in the fourth quarter. Huntington National Bank now owns 62 shares of the specialty retailer’s stock valued at $25,000 after acquiring an additional 32 shares during the period. Ameriflex Group Inc. bought a new stake in Murphy USA in the third quarter valued at $26,000. EverSource Wealth Advisors LLC raised its stake in Murphy USA by 423.1% during the second quarter. EverSource Wealth Advisors LLC now owns 68 shares of the specialty retailer’s stock worth $28,000 after acquiring an additional 55 shares in the last quarter. Finally, V Square Quantitative Management LLC acquired a new position in Murphy USA during the fourth quarter worth $29,000. 80.81% of the stock is owned by institutional investors and hedge funds.

About Murphy USA

Murphy USA is a leading downstream marketer of gasoline, diesel and convenience store products in the United States. Headquartered in El Dorado, Arkansas, the company was originally established as part of Murphy Oil Corporation and was spun off as an independent public entity in 2013. Since its separation, Murphy USA has focused on retail fueling services and convenience offerings designed to deliver value and convenience to consumers.

The company’s primary operations center on two retail formats.