April 25, 2023 – New York State Common Retirement Fund recently sold a portion of its stake in Murphy USA Inc. (NYSE:MUSA), according to the fund’s recent filing with the Securities and Exchange Commission. The fund decreased its holdings in the specialty retailer by 4.2% in the fourth quarter, selling off 670 shares and leaving them with 15,182 shares in the company. As of the most recent filing with the SEC, this was equivalent to 0.07% of Murphy USA’s total value, worth $4,244,000 in market capitalization.
Murphy USA announced its quarterly earnings results last February 1st. For that quarter, the company reported earnings per share of $5.21, which fell short of analysts’ consensus estimates by ($0.95). Despite this earnings miss, Murphy USA managed to post revenues amounting to $5.37 billion during Q4 of last year — a significant jump compared to analyst estimates of $5.40 billion — resulting in an increase in revenue by 12.6% year-over-year.
Murphy USA has more than two decades of experience marketing motor fuel products and convenience merchandise through retail stores under two brands: Murphy USA and Murphy Express. Its partnership with Walmart has been beneficial for both companies as they have started offering customers discounted and even free items based on purchases made from qualifying fuel and merchandise.
In conclusion, New York State Common Retirement Fund decided to reduce their investment exposure to Murphy USA earlier this year but still maintains a significant valuation of almost $4.25 million on the specialty retailer’s stock as part of their portfolio as of their most recent filing with SEC. With an anticipated EPS growth projection of 18.39 for the current fiscal year driven by company growth initiatives and strong operational performance during these challenging times amidst Covid-19 pandemic impacts on businesses nationwide will be faced with tough challenges down the road but Murphy USA has been able to address these obstacles with precision and resilience.
Hedge Funds Increase Holdings in Murphy USA Inc. & Collaboration with Walmart Boosts Sales
Murphy USA, Inc. is a company that specializes in marketing motor fuel products and convenience merchandise through its retail stores, Murphy USA and Murphy Express. They have recently made headlines due to changes made by hedge funds in their positions with the company. According to reports dated April 25, 2023, Trexquant Investment LP increased its holdings by 8.7% during Q3 and now owns shares worth $4.6 million. Louisiana State Employees Retirement System also made a significant contribution of $1.5 million by acquiring a new position of shares in the same period, while Calamos Wealth Management LLC added $214,000 in Q3. Raymond James Financial Services Advisors Inc., on the other hand, boosted its holdings of Murphy USA by 10.2%, adding an additional 566 shares worth $1.69 million in the last quarter.
Finally, California Public Employees Retirement System acquired 187.8% more shares in Q3 compared to the previous period, resulting in owning 49,452 shares worth $13.6 million – this increases institutional investors’ and hedge funds’ ownership to over eighty-five percent of the company’s stock.
Shares of MUSA started at a price of $278.98 on Tuesday with a market capitalization of $6.08 billion as well as a PE ratio of 9.93 and beta value of 0.80.The quick ratio for MUSA stands at around .48 with current ratios closer to .85 and debt-and-equity ratios at around two point eight.
Furthermore, they offer discounts on items purchased for qualifying fuel purchases through their collaboration with Walmart; discount incentives have led to customers purchasing more items thus increasing sales volume and profits for both companies.
The company paid out its most recent quarterly dividend on March 1st which saw investors receiving a $0.37 dividend per share representing an annualized payout yield of about half percent or slightly higher. For those who prefer synergistic investments, financial reports show that Murphy USA has increased its dividend payout ratio to 5.27% for the quarter.
Some analysts have also shared their thoughts regarding MUSA’s stock value: Raymond James lowered MUSA’s price target from $335.00 to $305.00 and assigned the company an “outperform” rating while Wells Fargo & Company downgraded it to a $325.00 target per share and gave it an “overweight” rating in early February of 2023 when it was trading at around $250 per share, just as many predicted a rising earnings report.
As of now, one stock specialist has issued a “sell” rating on MUSA’s shares while another one suggests opting for hold. Still, four of them are waiting eagerly for its upward trend breakthrough and sustenance to change their opinion on a buy recommendation. According to Bloomberg.com, the MUSA shares presently have an average rating of “Moderate Buy” with an average target price hovering at about $315 per share.
In conclusion, Murphy USA Inc continues to collaborate with Walmart and moves forward with aggressive strategies; the company’s revenue is expected to increase positively in a forecasted period based on rating history and hedge fund support during Q3 in 2023.
