Convergence Investment Partners LLC Purchases 9,415 Shares of Phillips 66 $PSX

Key Points

• Convergence Investment Partners increased its Phillips 66 position by 27.7% in the second quarter, purchasing 9,415 shares to own 43,453 shares worth approximately $7.35 million.
• Phillips 66 reported strong quarterly results, with EPS of $9.41 versus the $7.50 consensus estimate and revenue of $52.04 billion. The company also approved a $10 billion share-repurchase program and pays a quarterly dividend of $1.27 per share.
• PSX shares are near their 52-week high, while analysts maintain a “Moderate Buy” consensus with an average price target of $206.56. Recent insider selling and the lack of a completed merger with Marathon Petroleum provide counterpoints to the bullish outlook.

Convergence Investment Partners LLC grew its position in Phillips 66 (NYSE:PSX - Free Report) by 27.7% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 43,453 shares of the oil and gas company's stock after purchasing an additional 9,415 shares during the quarter. Convergence Investment Partners LLC's holdings in Phillips 66 were worth $7,346,000 as of its most recent SEC filing.

Other large investors also recently made changes to their positions in the company. NFSG Corp boosted its stake in Phillips 66 by 105.6% in the 1st quarter. NFSG Corp now owns 146 shares of the oil and gas company's stock valued at $27,000 after purchasing an additional 75 shares during the period. Axiom Investment Management LLC acquired a new position in Phillips 66 in the 1st quarter valued at $27,000. SWAN Capital LLC increased its position 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 worth $27,000 after buying an additional 190 shares during the period. Agman Capital LLC increased its position in Phillips 66 by 832.1% during the 2nd quarter. Agman Capital LLC now owns 183,634 shares of the oil and gas company's stock worth $31,000 after buying an additional 163,932 shares during the period. Finally, Sfam LLC acquired a new stake in shares of Phillips 66 during the fourth quarter worth $34,000. Institutional investors own 76.93% of the company's stock.

More Phillips 66 News

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

• Positive Sentiment: Takeover talks highlight strategic value. Phillips 66 and Marathon Petroleum reportedly discussed a potential combination valued at roughly $180 billion. Although the talks did not result in a deal, the discussions underscore PSX’s scale and could renew speculation about consolidation among U.S. refiners. Phillips 66 and Marathon Petroleum held takeover talks
• Positive Sentiment: Refining margins and shareholder returns remain supportive. Supply disruptions linked to the Iran conflict have lifted fuel margins, helping major refiners generate strong profits and increase buybacks and dividends. Phillips 66 has authorized a $10 billion repurchase program and pays a quarterly dividend of $1.27 per share. U.S. refiners ramp up buybacks as Iran war boosts fuel margins
• Positive Sentiment: Infrastructure expansion adds a longer-term growth angle. PSX, Kinder Morgan and HF Sinclair are advancing the approximately $5 billion Western Gateway refined-products pipeline, which is expected to improve market access and logistics flexibility. Phillips 66 and partners advance Western Gateway pipeline project
• Neutral Sentiment: Merger failure limits the immediate upside from consolidation. Antitrust concerns and operational complexity reportedly derailed the proposed Marathon Petroleum transaction. The outcome removes a near-term transformational catalyst, while the broader energy-sector rally and PSX’s premium valuation leave the stock more exposed to a reversal in refining margins. Reported Phillips 66 and Marathon Petroleum merger analysis
• Negative Sentiment: Heavy insider selling may weigh on sentiment. EVP Richard Harbison sold 52,100 shares for approximately $11.7 million, while EVP Brian Mandell sold 33,300 shares for about $7.2 million. The trades may be profit-taking after PSX’s strong rally, but they reduce insiders’ holdings and could raise short-term concerns about valuation. Richard Harbison sells Phillips 66 shares

Phillips 66 Stock Performance

NYSE:PSX opened at $233.29 on Friday. The stock has a fifty day moving average price of $192.72 and a 200-day moving average price of $175.95. The company has a market cap of $93.09 billion, a price-to-earnings ratio of 13.29, a PEG ratio of 0.17 and a beta of 0.68. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.00 and a current ratio of 1.32. Phillips 66 has a fifty-two week low of $121.24 and a fifty-two week high of $236.14.

Phillips 66 (NYSE:PSX - Get Free Report) last released 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 return on equity of 19.93% and a net margin of 4.54%.The company had revenue of $52.04 billion for the quarter, compared to analyst estimates of $43.60 billion. During the same period in the prior year, the firm posted $2.38 EPS. As a group, equities analysts anticipate that Phillips 66 will post 24.44 EPS for the current fiscal year.

Phillips 66 declared that its Board of Directors has approved a stock repurchase plan on Friday, July 31st that permits the company to buyback $10.00 billion in shares. This buyback authorization permits the oil and gas company to repurchase up to 11.8% of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board of directors believes its shares are undervalued.

Phillips 66 Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Tuesday, August 18th will be given a dividend of $1.27 per share. The ex-dividend date of this dividend is Tuesday, August 18th. This represents a $5.08 annualized dividend and a yield of 2.2%. Phillips 66's dividend payout ratio is currently 28.95%.

Insider Activity

In other news, CFO Kevin J. Mitchell sold 11,021 shares of the business's stock in a transaction that occurred on Thursday, July 9th. The shares were 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 approximately $18,504,361.28. The trade was a 10.17% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Brian Mandell sold 30,000 shares of the company's stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $215.00, for a total transaction of $6,450,000.00. Following the sale, the executive vice president directly owned 61,595 shares of the company's stock, valued at approximately $13,242,925. This trade represents a 32.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 100,507 shares of company stock valued at $21,770,810. Corporate insiders own 0.40% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on PSX. Tudor Pickering raised shares of Phillips 66 from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 30th. Wells Fargo & Company raised their price target on shares of Phillips 66 from $201.00 to $239.00 and gave the stock an "overweight" rating in a research report on Thursday, August 6th. Morgan Stanley lifted their price objective on shares of Phillips 66 from $180.00 to $196.00 and gave the stock an "overweight" rating in a research note on Friday, June 12th. Zacks Research downgraded shares of Phillips 66 from a "strong-buy" rating to a "hold" rating in a report on Monday, July 6th. Finally, Barclays increased their target price on shares of Phillips 66 from $183.00 to $216.00 and gave the stock an "equal weight" rating in a research report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat.com, Phillips 66 currently has an average rating of "Moderate Buy" and an average price target of $206.56.

Phillips 66 Profile

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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