Magellan Midstream Partners L.P. (NYSE:MMP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.

According to Zacks, “Considering Magellan Midstream's balance sheet pressure and the negative sentiment surrounding oil prices, we have turned bearish on the publicly traded partnership. Crude's historic decline has undoubtedly impacted the demand for transportation and storage services. While the midstream MLP has underperformed the Zacks categorized 'Oil/Gas Production Pipeline MLP' industry across the past three-month period, its debt-to-equity ratio of around 2 is almost double when compared to the industry average. We also need to factor in the delay in project completions and cost overruns. We further believe that MLP valuations will be largely disconnected from business fundamentals as long as the hoopla over falling crude prices continue. In the wake of weak industry sentiment and apprehensions of more punishing times ahead with future cash flows drying up, we see little reason for investors to hold the stock.”

Several other brokerages have also recently issued reports on MMP. Royal Bank Of Canada reissued a “hold” rating and set a $80.00 price objective on shares of Magellan Midstream Partners L.P. in a research note on Tuesday, March 14th. UBS AG reissued a “neutral” rating and set a $82.00 price objective (up from $81.00) on shares of Magellan Midstream Partners L.P. in a research note on Thursday, March 23rd. Macquarie began coverage on shares of Magellan Midstream Partners L.P. in a research note on Friday, April 21st. They set a “neutral” rating and a $80.00 price objective for the company. Credit Suisse Group raised shares of Magellan Midstream Partners L.P. from an “underperform” rating to a “neutral” rating and boosted their price objective for the company from $80.00 to $84.00 in a research note on Thursday, May 4th. Finally, BidaskClub raised shares of Magellan Midstream Partners L.P. from a “strong sell” rating to a “sell” rating in a research note on Tuesday, June 27th. Four research analysts have rated the stock with a sell rating, nine have assigned a hold rating and five have given a buy rating to the company’s stock. Magellan Midstream Partners L.P. has an average rating of “Hold” and a consensus price target of $78.84.

Shares of Magellan Midstream Partners L.P. (NYSE MMP) traded down 0.14% on Tuesday, reaching $69.45. The company had a trading volume of 498,049 shares. The firm has a 50-day moving average price of $71.79 and a 200 day moving average price of $75.38. Magellan Midstream Partners L.P. has a 1-year low of $64.25 and a 1-year high of $81.77. The firm has a market capitalization of $15.84 billion, a price-to-earnings ratio of 19.35 and a beta of 0.81.

Magellan Midstream Partners L.P. (NYSE:MMP) last released its earnings results on Wednesday, May 3rd. The pipeline company reported $0.98 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.90 by $0.08. The firm had revenue of $519.80 million during the quarter, compared to analysts’ expectations of $554.22 million. Magellan Midstream Partners L.P. had a net margin of 35.16% and a return on equity of 41.17%. Magellan Midstream Partners L.P.’s revenue for the quarter was down 19.0% on a year-over-year basis. During the same period in the previous year, the company earned $0.87 EPS. Equities research analysts predict that Magellan Midstream Partners L.P. will post $3.87 earnings per share for the current year.

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In related news, insider Douglas J. May sold 8,000 shares of Magellan Midstream Partners L.P. stock in a transaction on Wednesday, May 24th. The shares were sold at an average price of $75.00, for a total transaction of $600,000.00. Following the transaction, the insider now owns 27,599 shares in the company, valued at approximately $2,069,925. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.24% of the company’s stock.

Several institutional investors have recently bought and sold shares of MMP. OppenheimerFunds Inc. raised its position in Magellan Midstream Partners L.P. by 21.9% in the first quarter. OppenheimerFunds Inc. now owns 13,042,073 shares of the pipeline company’s stock valued at $1,003,066,000 after buying an additional 2,345,950 shares during the last quarter. UBS Group AG raised its position in Magellan Midstream Partners L.P. by 8.3% in the first quarter. UBS Group AG now owns 5,907,324 shares of the pipeline company’s stock valued at $454,332,000 after buying an additional 453,671 shares during the last quarter. JPMorgan Chase & Co. raised its position in Magellan Midstream Partners L.P. by 8.0% in the first quarter. JPMorgan Chase & Co. now owns 3,763,537 shares of the pipeline company’s stock valued at $289,454,000 after buying an additional 277,575 shares during the last quarter. Chickasaw Capital Management LLC raised its position in Magellan Midstream Partners L.P. by 2.9% in the first quarter. Chickasaw Capital Management LLC now owns 2,680,282 shares of the pipeline company’s stock valued at $206,140,000 after buying an additional 76,703 shares during the last quarter. Finally, Center Coast Capital Advisors LP raised its position in Magellan Midstream Partners L.P. by 4.2% in the first quarter. Center Coast Capital Advisors LP now owns 2,115,744 shares of the pipeline company’s stock valued at $162,722,000 after buying an additional 85,815 shares during the last quarter. Institutional investors and hedge funds own 62.58% of the company’s stock.

About Magellan Midstream Partners L.P.

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