Lee M Tillman Implements A Sell Strategy: Offloads $2.17M In Marathon Oil Stock

A substantial insider sell was reported on March 21, by Lee M Tillman, Chairman at Marathon Oil MRO, based on the recent SEC filing.

What Happened: Tillman's recent move involves selling 80,647 shares of Marathon Oil. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $2,172,718.

Monitoring the market, Marathon Oil's shares up by 0.04% at $27.21 during Friday's morning.

All You Need to Know About Marathon Oil

Marathon is an independent exploration and production company primarily focusing on unconventional resources in the United States. At the end of 2022, the company reported net proved reserves of 1.3 billion barrels of oil equivalent. Net production averaged 343 thousand barrels of oil equivalent per day in 2022 at a ratio of 70% oil and NGLs and 30% natural gas.

Financial Insights: Marathon Oil

Decline in Revenue: Over the 3 months period, Marathon Oil faced challenges, resulting in a decline of approximately -1.12% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.

Holistic Profitability Examination:

• Gross Margin: The company faces challenges with a low gross margin of 38.68%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Marathon Oil's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.68.

Debt Management: Marathon Oil's debt-to-equity ratio is below the industry average at 0.48, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 10.62 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 2.58 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 4.62, Marathon Oil's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Navigating the Impact of Insider Transactions on Investments

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Important Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Marathon Oil's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.