Phillips 66 (NYSE:PSX) Stock Rated "Moderate Buy" by Wall Street Brokerages

Key Points

• Analysts rate Phillips 66 a “Moderate Buy”: Eleven of 20 brokerages recommend buying the stock, two recommend a strong buy, and the average 12-month price target is $269.06.
• Phillips 66 reported quarterly earnings of $9.41 per share, exceeding estimates of $7.50, while shares opened at $291.35 near their 52-week high.
• The company raised its quarterly dividend 4.7% to $1.33 per share and authorized a $10 billion stock-repurchase program; however, insiders sold $25.0 million of shares over the past 90 days.

Shares of Phillips 66 (NYSE:PSX - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the twenty brokerages that are currently covering the company, MarketBeat.com reports. Seven equities research analysts have rated the stock with a hold recommendation, eleven have assigned a buy recommendation and two have assigned a strong buy recommendation to the company. The average twelve-month price objective among brokerages that have issued a report on the stock in the last year is $269.06.

Several research firms recently issued reports on PSX. UBS Group lifted their price objective on Phillips 66 from $235.00 to $300.00 and gave the company a "buy" rating in a research note on Tuesday, September 8th. Wells Fargo & Company upped their target price on Phillips 66 from $335.00 to $345.00 and gave the stock an "overweight" rating in a research note on Wednesday, October 14th. The Goldman Sachs Group upped their target price on Phillips 66 from $245.00 to $274.00 and gave the stock a "neutral" rating in a research note on Wednesday, September 30th. Piper Sandler raised their price target on Phillips 66 from $209.00 to $264.00 and gave the company a "neutral" rating in a report on Thursday, September 3rd. Finally, TD Cowen lifted their price target on Phillips 66 from $255.00 to $295.00 and gave the company a "buy" rating in a research report on Wednesday, September 30th.

Insider Buying and Selling

In related news, EVP Richard Harbison sold 52,100 shares of the firm's stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $223.76, for a total value of $11,657,896.00. Following the sale, the executive vice president directly owned 39,094 shares of the company's stock, valued at $8,747,673.44. This trade represents a 57.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Brian Mandell sold 23,400 shares of Phillips 66 stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $265.06, for a total transaction of $6,202,404.00. Following the sale, the executive vice president owned 61,595 shares of the company's stock, valued at approximately $16,326,370.70. The trade was a 27.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 108,800 shares of company stock worth $25,016,566 over the last ninety days. 0.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Phillips 66

Institutional investors have recently made changes to their positions in the stock. Pointe Capital Management LLC raised its holdings in Phillips 66 by 4.3% in the 2nd quarter. Pointe Capital Management LLC now owns 1,261 shares of the oil and gas company's stock worth $213,000 after purchasing an additional 52 shares in the last quarter. Community Financial Services Group LLC lifted its position in shares of Phillips 66 by 9.2% in the 3rd quarter. Community Financial Services Group LLC now owns 615 shares of the oil and gas company's stock worth $163,000 after purchasing an additional 52 shares during the period. Key Client Fiduciary Advisors LLC boosted its stake in shares of Phillips 66 by 3.5% during the 2nd quarter. Key Client Fiduciary Advisors LLC now owns 1,624 shares of the oil and gas company's stock valued at $275,000 after purchasing an additional 55 shares in the last quarter. Threadgill Financial LLC boosted its stake in shares of Phillips 66 by 3.5% during the 2nd quarter. Threadgill Financial LLC now owns 1,693 shares of the oil and gas company's stock valued at $286,000 after purchasing an additional 58 shares in the last quarter. Finally, Nilsine Partners LLC boosted its stake in shares of Phillips 66 by 1.5% during the 2nd quarter. Nilsine Partners LLC now owns 4,068 shares of the oil and gas company's stock valued at $688,000 after purchasing an additional 59 shares in the last quarter. Institutional investors own 76.93% of the company's stock.

Phillips 66 Stock Up 0.3%

Shares of NYSE:PSX opened at $291.35 on Wednesday. The firm has a fifty day moving average price of $259.58 and a two-hundred day moving average price of $208.77. The company has a market cap of $116.25 billion, a price-to-earnings ratio of 16.60 and a beta of 0.71. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.32 and a quick ratio of 1.00. Phillips 66 has a one year low of $126.92 and a one year high of $299.39.

Phillips 66 (NYSE:PSX - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The oil and gas company reported $9.41 earnings per share for the quarter, topping the consensus estimate of $7.50 by $1.91. Phillips 66 had a net margin of 4.54% and a return on equity of 19.93%. The firm had revenue of $51 billion for the quarter, compared to analysts' expectations of $43.60 billion. During the same quarter in the prior year, the firm posted $2.38 earnings per share. Analysts anticipate that Phillips 66 will post 31.12 EPS for the current fiscal year.

Phillips 66 Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Tuesday, November 17th will be given a $1.33 dividend. This represents a $5.32 annualized dividend and a dividend yield of 1.8%. This is a positive change from Phillips 66's previous quarterly dividend of $1.27. The ex-dividend date is Tuesday, November 17th. Phillips 66's dividend payout ratio (DPR) is currently 28.95%.

Phillips 66 declared that its board has authorized a stock buyback program on Friday, July 31st that authorizes the company to buy back $10.00 billion in shares. This repurchase authorization authorizes the oil and gas company to reacquire up to 11.8% of its shares through open market purchases. Stock repurchase programs are often a sign that the company's board of directors believes its stock is undervalued.

Phillips 66 News Summary

Here are the key news stories impacting Phillips 66 this week:

• Positive Sentiment: Phillips 66 raised its quarterly dividend 4.7% to $1.33 per share, or $5.32 annualized, supporting the stock’s income appeal. The dividend is payable December 1 to shareholders of record November 17. Phillips 66 Stock Is Up 133%. Can Its Dividend Keep Growing?
• Positive Sentiment: Exchange-traded funds recorded approximately $167.4 million of net buying in Phillips 66 on October 16, indicating institutional or passive-investment demand that could provide support for the shares. Phillips 66 Sees $167.4 Million in Net ETF Buying
• Positive Sentiment: A Zacks analysis describes PSX as a strong growth stock based on its style-rating framework, adding to the favorable sentiment around the company’s recent performance. Here's Why Phillips 66 Is a Strong Growth Stock
• Neutral Sentiment: The stock’s roughly 133% gain this year has increased investor attention, but analysts note that elevated debt and volatile refining margins could make future dividend increases harder to sustain. Phillips 66 Stock Is Up 133%. Can Its Dividend Keep Growing?
• Negative Sentiment: Phillips 66 has locked out union workers at its New Jersey refinery after a contract extension expired. The dispute could disrupt refinery operations, increase labor-related costs, or prolong uncertainty around production. Phillips 66 Locks Out Union Workers at New Jersey Refinery

About Phillips 66

Phillips 66 NYSE: PSX is an energy manufacturing and logistics company headquartered in Houston, Texas. The company was established in 2012 following the separation of ConocoPhillips' downstream and midstream businesses.

Phillips 66 operates across midstream, chemicals, refining and marketing. Its midstream activities include gathering, processing, transporting and storing crude oil, natural gas and natural gas liquids. Through its refining operations, the company converts crude oil and other feedstocks into gasoline, diesel, jet fuel, lubricants and other refined petroleum products.

The company markets fuel and related products under the Phillips 66, 76 and Conoco brands, serving retail, commercial, aviation and industrial customers.

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