Phillips 66 (NYSE:PSX) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analysts rate Phillips 66 a “Moderate Buy.” Of 22 analysts, 13 recommend buying, eight rate it a hold and one recommends a strong buy; the average 12-month price target is $206.56.
• Phillips 66 reported quarterly EPS of $9.41, beating estimates of $7.50, while revenue reached $52.04 billion versus the $43.60 billion consensus forecast.
• The company declared a quarterly dividend of $1.27 per share and authorized a $10 billion share-repurchase program, allowing it to buy back up to 11.8% of outstanding shares.

Shares of Phillips 66 (NYSE:PSX - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the twenty-two brokerages that are presently covering the company, MarketBeat.com reports. Eight equities research analysts have rated the stock with a hold recommendation, thirteen have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price objective among brokerages that have covered the stock in the last year is $206.5556.

A number of research analysts have recently issued reports on PSX shares. Raymond James Financial raised their price objective on Phillips 66 from $218.00 to $235.00 and gave the company an "outperform" rating in a research note on Monday, July 13th. The Goldman Sachs Group boosted their target price on Phillips 66 from $207.00 to $235.00 and gave the company a "neutral" rating in a research note on Wednesday, July 22nd. Barclays increased their target price on Phillips 66 from $183.00 to $216.00 and gave the company an "equal weight" rating in a report on Thursday, August 6th. Zacks Research cut Phillips 66 from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 6th. Finally, Mizuho raised Phillips 66 from a "neutral" rating to an "outperform" rating and lifted their price target for the stock from $170.00 to $212.00 in a research note on Wednesday, May 27th.

Phillips 66 Stock Up 1.2%

PSX stock opened at $246.86 on Tuesday. The company has a current ratio of 1.32, a quick ratio of 1.00 and a debt-to-equity ratio of 0.57. The company's 50 day moving average is $207.69 and its 200 day moving average is $183.39. The stock has a market cap of $98.50 billion, a price-to-earnings ratio of 14.07, a price-to-earnings-growth ratio of 0.18 and a beta of 0.68. Phillips 66 has a 1-year low of $126.74 and a 1-year high of $250.66.

Phillips 66 (NYSE:PSX - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The oil and gas company reported $9.41 EPS for the quarter, beating the consensus estimate of $7.50 by $1.91. The firm had revenue of $52.04 billion for the quarter, compared to analyst estimates of $43.60 billion. Phillips 66 had a return on equity of 19.93% and a net margin of 4.54%.During the same period in the prior year, the company earned $2.38 EPS. Sell-side analysts predict that Phillips 66 will post 23.86 EPS for the current fiscal year.

Phillips 66 Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 18th will be issued a $1.27 dividend. The ex-dividend date is Tuesday, August 18th. This represents a $5.08 annualized dividend and a dividend yield of 2.1%. Phillips 66's dividend payout ratio (DPR) is currently 28.95%.

Phillips 66 announced that its Board of Directors has initiated a share repurchase program on Friday, July 31st that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the oil and gas company to buy up to 11.8% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's leadership believes its shares are undervalued.

Insiders Place Their Bets

In related news, EVP Brian Mandell sold 30,000 shares of the business's stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $215.00, for a total transaction of $6,450,000.00. Following the transaction, the executive vice president owned 61,595 shares in the company, valued at $13,242,925. The trade was a 32.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Richard G. Harbison sold 52,100 shares of the stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $223.76, for a total value of $11,657,896.00. Following the completion of the transaction, the executive vice president directly owned 39,094 shares of the company's stock, valued at $8,747,673.44. This represents a 57.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 100,507 shares of company stock worth $21,770,810 in the last quarter. 0.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Phillips 66

Several hedge funds have recently added to or reduced their stakes in the stock. NFSG Corp raised its holdings in Phillips 66 by 105.6% in the 1st quarter. NFSG Corp now owns 146 shares of the oil and gas company's stock worth $27,000 after acquiring an additional 75 shares during the last quarter. Axiom Investment Management LLC purchased a new stake in Phillips 66 during the 1st quarter valued at $27,000. SWAN Capital LLC boosted its stake in Phillips 66 by 1,055.6% during the 4th quarter. SWAN Capital LLC now owns 208 shares of the oil and gas company's stock valued at $27,000 after purchasing an additional 190 shares during the last quarter. Compass Financial Management LLC bought a new stake in shares of Phillips 66 in the 2nd quarter worth $28,000. Finally, Kelleher Financial Advisors bought a new stake in shares of Phillips 66 in the 2nd quarter worth $29,000. 76.93% of the stock is owned by institutional investors.

About Phillips 66

Phillips 66 NYSE: PSX is an independent energy manufacturing and logistics company engaged primarily in refining, midstream transportation, marketing and chemicals. The company processes crude oil into transportation fuels, lubricants and other petroleum products, operates pipeline and storage infrastructure, and participates in petrochemical production through strategic investments. Phillips 66 serves commercial, industrial and retail customers and positions its operations across the value chain of the downstream energy sector.

The company's principal activities include refining crude oil into gasoline, diesel, jet fuel and feedstocks for petrochemical production; operating midstream assets such as pipelines, terminals and fractionators that move and store crude oil and natural gas liquids; and marketing and distributing fuels and lubricants through wholesale and retail channels.

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