Engine Capital Management LP Takes $2.47 Million Position in Phillips 66 $PSX

Key Points

• Engine Capital Management LP acquired a new stake in Phillips 66, purchasing 20,000 shares valued at approximately $2.47 million in the first quarter, which represents about 0.5% of its total holdings.
• Institutional investors own 76.93% of Phillips 66's stock, with multiple hedge funds, including Elliott Investment Management, significantly increasing their positions during the first quarter.
• Phillips 66 recently announced a quarterly dividend of $1.20 per share, translating to an annualized payout of $4.80 and a yield of 3.7%, although its dividend payout ratio is currently 115.38%.

Engine Capital Management LP purchased a new stake in shares of Phillips 66 (NYSE:PSX - Free Report) in the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 20,000 shares of the oil and gas company's stock, valued at approximately $2,470,000. Phillips 66 comprises about 0.5% of Engine Capital Management LP's investment portfolio, making the stock its 25th biggest holding.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. Elliott Investment Management L.P. increased its holdings in Phillips 66 by 1,929.0% in the 1st quarter. Elliott Investment Management L.P. now owns 15,725,000 shares of the oil and gas company's stock worth $1,941,723,000 after acquiring an additional 14,950,000 shares in the last quarter. Price T Rowe Associates Inc. MD increased its holdings in Phillips 66 by 11.3% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 6,709,108 shares of the oil and gas company's stock worth $828,442,000 after acquiring an additional 682,459 shares in the last quarter. Invesco Ltd. increased its holdings in Phillips 66 by 15.9% in the 1st quarter. Invesco Ltd. now owns 4,765,866 shares of the oil and gas company's stock worth $588,489,000 after acquiring an additional 653,248 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in Phillips 66 by 11.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 3,781,064 shares of the oil and gas company's stock worth $466,886,000 after acquiring an additional 377,132 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. increased its holdings in Phillips 66 by 3.3% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 3,103,316 shares of the oil and gas company's stock worth $383,197,000 after acquiring an additional 100,321 shares in the last quarter. Hedge funds and other institutional investors own 76.93% of the company's stock.

Phillips 66 Price Performance

PSX stock traded down $0.14 during midday trading on Friday, hitting $131.44. The company's stock had a trading volume of 1,828,526 shares, compared to its average volume of 1,927,008. Phillips 66 has a 12 month low of $91.01 and a 12 month high of $140.60. The company has a quick ratio of 0.79, a current ratio of 1.07 and a debt-to-equity ratio of 0.60. The firm has a market capitalization of $53.12 billion, a price-to-earnings ratio of 31.60, a price-to-earnings-growth ratio of 2.05 and a beta of 1.15. The company has a 50 day moving average of $126.26 and a two-hundred day moving average of $119.42.

Phillips 66 (NYSE:PSX - Get Free Report) last posted its earnings results on Friday, July 25th. The oil and gas company reported $2.38 EPS for the quarter, beating analysts' consensus estimates of $1.79 by $0.59. The firm had revenue of $33.77 billion during the quarter, compared to the consensus estimate of $32.11 billion. Phillips 66 had a return on equity of 4.87% and a net margin of 1.27%.During the same period in the prior year, the company earned $2.31 EPS. On average, analysts expect that Phillips 66 will post 6.8 EPS for the current year.

Phillips 66 Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 2nd. Stockholders of record on Tuesday, August 19th were given a dividend of $1.20 per share. This represents a $4.80 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date was Tuesday, August 19th. Phillips 66's dividend payout ratio is currently 115.38%.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Mizuho increased their target price on shares of Phillips 66 from $132.00 to $138.00 and gave the stock a "neutral" rating in a report on Tuesday, May 13th. Wells Fargo & Company reduced their target price on shares of Phillips 66 from $149.00 to $147.00 and set an "overweight" rating for the company in a report on Wednesday, June 11th. Piper Sandler reissued a "neutral" rating and issued a $145.00 target price (up from $144.00) on shares of Phillips 66 in a report on Monday, August 4th. Barclays upped their price target on Phillips 66 from $115.00 to $127.00 and gave the stock an "equal weight" rating in a research note on Wednesday, July 9th. Finally, Citigroup downgraded Phillips 66 from a "buy" rating to a "neutral" rating and upped their price target for the stock from $126.00 to $130.00 in a research note on Wednesday, July 16th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $135.60.

Insider Activity

In other news, Director Sigmund L. Cornelius bought 500 shares of the stock in a transaction dated Thursday, July 31st. The stock was purchased at an average cost of $123.55 per share, for a total transaction of $61,775.00. Following the transaction, the director owned 21,543 shares of the company's stock, valued at $2,661,637.65. The trade was a 2.38% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Gregory Hayes bought 8,350 shares of the stock in a transaction dated Thursday, August 14th. The shares were purchased at an average price of $119.90 per share, with a total value of $1,001,165.00. Following the completion of the transaction, the director directly owned 29,423 shares in the company, valued at approximately $3,527,817.70. The trade was a 39.62% increase in their position. The disclosure for this purchase can be found here. In the last ninety days, insiders purchased 9,850 shares of company stock worth $1,188,910. 0.22% of the stock is owned by corporate insiders.

Phillips 66 Company Profile

Phillips 66 operates as an energy manufacturing and logistics company in the United States, the United Kingdom, Germany, and internationally. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment transports crude oil and other feedstocks; delivers refined petroleum products to market; provides terminaling and storage services for crude oil and refined petroleum products; transports, stores, fractionates, exports, and markets natural gas liquids; provides other fee-based processing services; and gathers, processes, transports, and markets natural gas.