Marathon Petroleum (MPC, $60.07) should be split into 3, says Elliot Management
Marathon Petroleum shares surged Wednesday, following comments from activist investors at Elliott Management that the group should be split into three separate companies.
The independent oil refining company’s 2.5% stake is held by Elliott. Elliot has suggested that Marathon should initiate a separation into three independent entities, in order to unlock more than $22 billion in value for shareholders. Elliot also believes that the separation would boost the company's stock price by more than 60%.
Elliott’s letter asked Marathon to separate its Speedway gas-station chain and its pipeline business into their own companies, while making Marathon’s refining business as the new Marathon.
Marathon agreed to a $23 billion deal last year to acquire rival Andeavor. But Elliot does not approve of the purchase since it believes that Marathon sought another integrated oil refining company at a time when it promised to consider simplifying its business structure.
Back in 2016, when Elliott had first targeted Marathon, the former had insisted on a similar breakup of the company. Eventually it settled on a promise from Marathon to simplify its midstream business and review its Speedway chain of company-owned retail gasoline stores.
MPC in -1.86% downward trend, falling for three consecutive days on July 16, 2025
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where MPC declined for three days, in of 249 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for MPC moved out of overbought territory on July 14, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 60 cases where MPC's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on July 17, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on MPC as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MPC turned negative on July 15, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
MPC broke above its upper Bollinger Band on July 08, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The 50-day moving average for MPC moved above the 200-day moving average on June 20, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MPC advanced for three days, in of 343 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 363 cases where MPC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. MPC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.018) is normal, around the industry mean (9.584). P/E Ratio (8.650) is within average values for comparable stocks, (17.092). Projected Growth (PEG Ratio) (0.185) is also within normal values, averaging (0.907). Dividend Yield (0.015) settles around the average of (0.062) among similar stocks. P/S Ratio (0.563) is also within normal values, averaging (0.483).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
an operator of petroleum product refiners, marketers and transporters
Industry OilRefiningMarketing
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