MUSA Should I Buy
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Murphy USA Inc (MUSA) is not a compelling buy at the moment for a beginner investor with a long-term strategy. The stock lacks strong positive momentum, and the technical indicators, options data, and analyst ratings suggest limited near-term upside. While the company has shown stable financial performance and increased dividends, the dependence on fuel and nicotine, along with muted growth prospects, makes it less attractive compared to peers.
The technical indicators for MUSA are neutral to slightly bearish. The MACD is negative and contracting, RSI is neutral at 40.09, and moving averages are converging. The stock is trading below the pivot level of 406.029, with key support at 368.826 and resistance at 443.232. This suggests limited upward momentum in the near term.
Hedge funds are significantly increasing their holdings, with a 21095.45% increase in buying over the last quarter.
The company announced a 29% increase in its quarterly dividend, reflecting strong cash flow and shareholder commitment.
Analysts have lowered price targets, citing dependence on fuel and nicotine and muted growth prospects.
Technical indicators show limited upward momentum, and the stock is trading below key pivot levels.
No recent congress trading data or significant insider buying trends.
In Q4 2025, Murphy USA reported a slight revenue increase of 0.24% YoY to $4.14 billion. Net income dropped by 0.42% YoY to $141.9 million, while EPS grew by 8.19% YoY to 7.53. Gross margin improved by 5.91% YoY to 13.63%, indicating operational efficiency despite modest revenue growth.
Analysts have mixed to negative views on MUSA. BofA maintains an Underperform rating with a reduced price target of $350, citing dependence on fuel and nicotine and limited near-term upside. Stephens and KeyBanc have Overweight ratings with price targets of $450 and $500, respectively, but acknowledge near-term earnings pressure. RBC Capital and Wells Fargo have more cautious ratings, reflecting ongoing challenges in margins and volumes.
