Assenagon Asset Management S.A. Lowers Stake in Phillips 66 $PSX

Key Points

• Assenagon Asset Management cut its Phillips 66 stake by 16.8% in the second quarter, selling 46,874 shares and retaining 231,785 shares valued at approximately $39.2 million. Institutional investors collectively own 76.93% of PSX.
• Phillips 66 reported strong quarterly results, with EPS of $9.41 beating estimates of $7.50 and revenue of $52.04 billion exceeding expectations. Analysts maintain a “Moderate Buy” consensus, with a target price of $206.50.
• The company authorized a $10 billion share-repurchase program covering up to 11.8% of outstanding shares and declared a quarterly dividend of $1.27, representing a 2.5% annualized yield.

Assenagon Asset Management S.A. lowered its holdings in shares of Phillips 66 (NYSE:PSX - Free Report) by 16.8% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 231,785 shares of the oil and gas company's stock after selling 46,874 shares during the period. Assenagon Asset Management S.A. owned approximately 0.06% of Phillips 66 worth $39,183,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also bought and sold shares of the company. MUFG Securities EMEA plc raised its position in shares of Phillips 66 by 113.5% in the 4th quarter. MUFG Securities EMEA plc now owns 16,518 shares of the oil and gas company's stock worth $2,131,000 after purchasing an additional 8,783 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its stake in Phillips 66 by 17.0% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 1,371,804 shares of the oil and gas company's stock worth $177,018,000 after purchasing an additional 199,646 shares in the last quarter. Horizon Investments LLC grew its position in Phillips 66 by 478.4% during the 4th quarter. Horizon Investments LLC now owns 63,290 shares of the oil and gas company's stock valued at $8,167,000 after purchasing an additional 52,348 shares during the last quarter. LBP AM SA increased its stake in Phillips 66 by 237.8% during the 4th quarter. LBP AM SA now owns 56,380 shares of the oil and gas company's stock valued at $7,275,000 after purchasing an additional 39,690 shares in the last quarter. Finally, Truist Financial Corp increased its stake in Phillips 66 by 1.6% during the 4th quarter. Truist Financial Corp now owns 675,084 shares of the oil and gas company's stock valued at $87,113,000 after purchasing an additional 10,585 shares in the last quarter. Hedge funds and other institutional investors own 76.93% of the company's stock.

Insiders Place Their Bets

In other Phillips 66 news, EVP Vanessa Allen Sutherland sold 3,523 shares of the stock in a transaction dated Tuesday, July 21st. The stock was sold at an average price of $211.05, for a total value of $743,529.15. Following the transaction, the executive vice president owned 27,537 shares of the company's stock, valued at approximately $5,811,683.85. This represents a 11.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin J. Mitchell sold 11,021 shares of the firm's stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $190.03, for a total value of $2,094,320.63. Following the completion of the transaction, the chief financial officer directly owned 97,376 shares in the company, valued at $18,504,361.28. The trade was a 10.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 15,707 shares of company stock worth $3,059,584. Company insiders own 0.40% of the company's stock.

Analyst Upgrades and Downgrades

PSX has been the topic of several analyst reports. BMO Capital Markets upped their target price on shares of Phillips 66 from $195.00 to $215.00 and gave the stock an "outperform" rating in a research note on Wednesday, May 13th. Mizuho upgraded shares of Phillips 66 from a "neutral" rating to an "outperform" rating and boosted their price objective for the stock from $170.00 to $212.00 in a report on Wednesday, May 27th. TD Cowen upped their price objective on Phillips 66 from $240.00 to $255.00 and gave the company a "buy" rating in a research report on Thursday. UBS Group increased their target price on Phillips 66 from $212.00 to $235.00 and gave the company a "buy" rating in a research note on Monday, July 27th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Phillips 66 in a report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat, Phillips 66 currently has an average rating of "Moderate Buy" and a consensus target price of $206.50.

Phillips 66 Stock Down 0.7%

PSX opened at $204.05 on Friday. The stock has a market capitalization of $81.42 billion, a price-to-earnings ratio of 11.63, a PEG ratio of 0.16 and a beta of 0.68. The firm has a 50 day moving average price of $188.40 and a 200-day moving average price of $172.95. Phillips 66 has a twelve month low of $118.07 and a twelve month high of $216.08. The company has a quick ratio of 0.85, a current ratio of 1.32 and a debt-to-equity ratio of 0.57.

Phillips 66 (NYSE:PSX - Get Free Report) last issued its earnings results on Wednesday, August 5th. The oil and gas company reported $9.41 earnings per share (EPS) 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 company had revenue of $52.04 billion for the quarter, compared to analysts' expectations of $43.60 billion. During the same quarter last year, the company posted $2.38 earnings per share. Equities research analysts forecast that Phillips 66 will post 23.01 earnings per share for the current year.

Phillips 66 announced that its Board of Directors has initiated a stock repurchase plan on Friday, July 31st that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the oil and gas company to purchase up to 11.8% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's management believes its stock is undervalued.

Phillips 66 Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 18th will be paid a $1.27 dividend. This represents a $5.08 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date is Tuesday, August 18th. Phillips 66's dividend payout ratio (DPR) is 28.95%.

Phillips 66 News Roundup

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

• Positive Sentiment: Record earnings and broad-based operating improvement: Second-quarter adjusted earnings reached approximately $3.8 billion, with net profit rising sharply as refining margins more than doubled. Refining, midstream, chemicals and marketing all contributed, while stronger execution helped the company exceed earnings expectations. Phillips 66 Profit Jumps as Refining Margins More Than Double
• Positive Sentiment: Favorable refining outlook: Management said tight product supply and limited refining capacity could keep margins strong through 2027, extending the period of elevated profitability. Phillips 66 sees strong refining margins continuing through 2027
• Positive Sentiment: Balance-sheet and shareholder-return catalysts: Debt reduction, midstream growth and potential for enhanced capital returns are improving the investment case. TD Cowen maintained a Buy rating and raised its price target to $255 from $240, citing stronger fundamentals and a healthier balance sheet. TD Cowen raises Phillips 66 price target
• Neutral Sentiment: Analyst sentiment is positive but not unanimous: Brokerages collectively rate PSX a “Moderate Buy,” while a fair-value estimate increased to $207.53. However, Bank of America reiterated a Hold rating with a $213 target, indicating some analysts view much of the upside as already reflected. Phillips 66 receives Moderate Buy recommendation
• Negative Sentiment: Cyclical and valuation risks remain: The stock is near its 12-month high after a substantial rally, leaving investors concerned that refining margins may normalize and that current earnings could represent a peak. That caution may be limiting further gains despite the upbeat results.

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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