First Fiduciary Investment Counsel Inc. Sells 24,434 Shares of Phillips 66 $PSX

Key Points

• First Fiduciary Investment Counsel cut its Phillips 66 stake by 44.7% in the third quarter, selling 24,434 shares and retaining 30,257 shares valued at approximately $7.7 million. Institutional investors and hedge funds collectively own 76.93% of PSX.
• Phillips 66 reported a significant third-quarter earnings beat: EPS was $14.08 versus the $11.73 consensus, while revenue reached $50.54 billion. Results were driven by stronger refining margins, higher volumes and 98% utilization.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $269.88, while Phillips 66 raised its quarterly dividend to $1.33 and has authorization to repurchase up to $10 billion of stock. Investors remain focused on whether unusually strong refining conditions can persist.

First Fiduciary Investment Counsel Inc. lessened its stake in Phillips 66 (NYSE:PSX - Free Report) by 44.7% during the third quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 30,257 shares of the oil and gas company's stock after selling 24,434 shares during the period. Phillips 66 comprises about 1.5% of First Fiduciary Investment Counsel Inc.'s portfolio, making the stock its 28th biggest position. First Fiduciary Investment Counsel Inc.'s holdings in Phillips 66 were worth $7,725,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds also recently made changes to their positions in the stock. Proficio Capital Partners LLC acquired a new stake in shares of Phillips 66 during the second quarter worth $384,000. BlackRock Inc. bought a new stake in Phillips 66 in the second quarter worth approximately $5,766,779,000. Fifth Third Bancorp increased its holdings in Phillips 66 by 543.7% in the first quarter. Fifth Third Bancorp now owns 128,156 shares of the oil and gas company's stock worth $23,348,000 after purchasing an additional 108,248 shares in the last quarter. Stack Financial Management Inc acquired a new position in Phillips 66 in the second quarter valued at approximately $36,317,000. Finally, West Family Investments Inc. acquired a new position in Phillips 66 in the second quarter valued at approximately $724,000. Institutional investors and hedge funds own 76.93% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have issued reports on the company. Raymond James Financial restated an "outperform" rating and set a $335.00 price target on shares of Phillips 66 in a report on Monday, October 19th. Mizuho downgraded shares of Phillips 66 from an "outperform" rating to a "neutral" rating and raised their price objective for the stock from $220.00 to $300.00 in a research report on Thursday, October 8th. TD Cowen lifted their price objective on shares of Phillips 66 from $295.00 to $308.00 and gave the company a "buy" rating in a research note on Thursday, October 22nd. Barclays boosted their target price on shares of Phillips 66 from $216.00 to $282.00 and gave the company an "equal weight" rating in a research report on Monday, October 12th. Finally, Jefferies Financial Group reissued a "hold" rating and set a $276.00 target price on shares of Phillips 66 in a research note on Sunday, October 11th. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $269.88.

Key Stories Impacting Phillips 66

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

• Positive Sentiment: Record profit and earnings beat: Phillips 66 reported approximately $5.6 billion in adjusted third-quarter earnings, or $14.08 per diluted share, versus consensus estimates near $11.7–$12.0 per share and $2.52 a year earlier. Revenue also exceeded expectations at $50.54 billion. Phillips 66 beats quarterly profit estimates as refining margins soar
• Positive Sentiment: Refining strength drove the result: Refining earnings nearly doubled sequentially to $6.03 billion, supported by wider margins, higher volumes and 98% utilization. Record Central Corridor processed-input volume and stronger fuel-export demand linked to Middle East tensions further supported profitability. Phillips 66 Q3 Earnings Beat Estimates on Strong Refining Margins
• Positive Sentiment: Cash generation and balance-sheet improvement: Operating cash flow totaled roughly $7.3 billion. The company returned $2.8 billion through dividends and share repurchases and reduced total debt by about $2 billion to $18.5 billion, strengthening the shareholder-return story. Phillips 66: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Strong results may reflect peak-cycle conditions: The quarter benefited from unusually favorable refining margins, while midstream volumes also remained solid. Investors will likely focus on whether these conditions persist into the fourth quarter.
• Negative Sentiment: Margin and valuation risks remain: Gasoline prices and expectations for increased fuel supply had raised concerns that refining margins could cool. Analysts had also warned that much of the sector’s earnings recovery was already reflected in share prices, potentially limiting further upside after the rebound. Phillips 66 Slides as Traders Reassess Refining Upside Ahead of Earnings

Phillips 66 Stock Performance

Shares of PSX opened at $273.51 on Thursday. Phillips 66 has a one year low of $127.16 and a one year high of $299.39. The company has a market cap of $109.14 billion, a PE ratio of 15.58, a P/E/G ratio of 0.16 and a beta of 0.71. The stock has a 50-day moving average of $264.69 and a 200-day moving average of $197.13. 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 (NYSE:PSX - Get Free Report) last posted its quarterly earnings results on Wednesday, October 28th. The oil and gas company reported $14.08 earnings per share for the quarter, topping analysts' consensus estimates of $11.73 by $2.35. Phillips 66 had a return on equity of 19.93% and a net margin of 4.54%. The business had revenue of $50.54 billion for the quarter, compared to the consensus estimate of $44.91 billion. During the same period in the prior year, the business earned $2.52 EPS. On average, equities research analysts predict that Phillips 66 will post 31.39 EPS for the current fiscal year.

Phillips 66 Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Tuesday, November 17th will be paid a $1.33 dividend. This represents a $5.32 dividend on an annualized basis and a yield of 1.9%. This is a boost from Phillips 66's previous quarterly dividend of $1.27. The ex-dividend date of this dividend is Tuesday, November 17th. Phillips 66's payout ratio is 30.31%.

Phillips 66 announced that its Board of Directors has approved a share buyback plan on Friday, July 31st that allows the company to repurchase $10 billion in outstanding 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 often an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling

In other news, EVP Brian Mandell sold 23,400 shares of the company's stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $265.06, for a total transaction of $6,202,404.00. Following the transaction, the executive vice president directly owned 61,595 shares of the company's stock, valued at $16,326,370.70. This represents a 27.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Richard G. Harbison sold 52,100 shares of the stock in a transaction 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 owned 39,094 shares in the company, valued at approximately $8,747,673.44. This represents a 57.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 108,800 shares of company stock valued at $25,016,566 in the last three months. Insiders own 0.40% of the company's stock.

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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