5 Oil Stocks to Sell Before Recession Begins

3. Marathon Oil Corporation (NYSE:MRO)

Number of Hedge Fund Holders: 43

Stock Price as of July 7: $21.13

Marathon Oil Corporation (NYSE:MRO) is a Houston, Texas-based crude oil and natural gas E&P company.

On June 24, Scott Gruber at Citi downgraded Marathon Oil Corporation (NYSE:MRO) stock from a Buy to a Neutral rating and slashed the target price from $31 to $24. The revised target has restricted the potential upside from 46.7% to 13.5% only. The analyst has downgraded Marathon Oil Corporation (NYSE:MRO) stock because he does not anticipate a rally in stock price associated with a rally in crude oil prices. Crude oil prices are expected to remain range-bound or even fall due to a possible risk of a global recession. The analyst recommends investors take a more selective approach toward the E&P industry stocks and highlights that the valuations always appear “cheap at the peak.”

Two Sigma Advisors and D E Shaw reduced their holding in Marathon Oil Corporation (NYSE:MRO) by 29% and 38%, respectively, during the first quarter of the year.

Here’s what Carillon Tower Advisers said about Marathon Oil Corporation (NYSE:MRO) in its Q1 2022 investor letter:

“Stock selection contributed the most while sector allocation was also positive. An underweight to communication services and an overweight to energy helped performance, while an underweight to consumer staples and an overweight to materials detracted. Stock selection was strong within healthcare and materials but was weak within information technology and industrials. Marathon Oil (NYSE:MRO) increased its quarterly dividend and executed an impressive share buyback that blew by the target it originally announced.”

As of Q1 2022, 43 funds held a stake in Marathon Oil Corporation (NYSE:MRO).