Hikari Power Ltd Purchases New Position in Phillips 66 $PSX

Key Points

• Hikari Power Ltd. acquired 155,300 Phillips 66 shares worth approximately $26.3 million in the second quarter, making PSX its sixth-largest holding and representing 3.1% of its portfolio.
• Phillips 66 reported quarterly EPS of $9.41, well above the $7.50 analyst consensus, on revenue of $52.04 billion. The company also authorized a $10 billion share-repurchase program covering up to 11.8% of outstanding shares.
• The company declared a quarterly dividend of $1.27, or $5.08 annualized, yielding about 2.1%. Analysts maintain a “Moderate Buy” consensus, although the average price target of $206.56 is below the reported share price of $240.50.

Hikari Power Ltd acquired a new stake in Phillips 66 (NYSE:PSX - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 155,300 shares of the oil and gas company's stock, valued at approximately $26,253,000. Phillips 66 accounts for approximately 3.1% of Hikari Power Ltd's investment portfolio, making the stock its 6th biggest holding.

A number of other hedge funds and other institutional investors also recently modified their holdings of the stock. Plato Investment Management Ltd purchased a new stake in shares of Phillips 66 in the second quarter worth about $476,000. Bell Investment Advisors Inc acquired a new position in Phillips 66 during the 2nd quarter worth approximately $53,000. AMG National Trust Bank acquired a new position in Phillips 66 during the 2nd quarter worth approximately $1,208,000. Roman Butler Fullerton & Co. purchased a new position in Phillips 66 in the 2nd quarter worth approximately $430,000. Finally, Simplicity Wealth LLC purchased a new position in Phillips 66 in the 2nd quarter worth approximately $1,122,000. Institutional investors and hedge funds own 76.93% of the company's stock.

Phillips 66 Price Performance

Shares of NYSE PSX opened at $240.50 on Tuesday. The company has a quick ratio of 1.00, a current ratio of 1.32 and a debt-to-equity ratio of 0.57. Phillips 66 has a fifty-two week low of $121.24 and a fifty-two week high of $240.67. The business has a 50 day moving average price of $193.87 and a two-hundred day moving average price of $176.91. The firm has a market cap of $95.96 billion, a PE ratio of 13.70, a price-to-earnings-growth ratio of 0.17 and a beta of 0.68.

Phillips 66 (NYSE:PSX - Get Free Report) last announced its earnings results on Wednesday, August 5th. The oil and gas company reported $9.41 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $7.50 by $1.91. The company had revenue of $52.04 billion for the quarter, compared to analyst estimates of $43.60 billion. Phillips 66 had a return on equity of 19.93% and a net margin of 4.54%.During the same period in the prior year, the company posted $2.38 EPS. Sell-side analysts expect that Phillips 66 will post 24.44 earnings per share for the current fiscal year.

Phillips 66 declared that its board has approved a share repurchase program on Friday, July 31st that permits the company to buyback $10.00 billion in outstanding shares. This buyback authorization permits the oil and gas company to buy up to 11.8% of its shares through open market purchases. Shares buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Phillips 66 Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Investors 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 2.1%. The ex-dividend date is Tuesday, August 18th. Phillips 66's payout ratio is 28.95%.

Insider Activity at Phillips 66

In other news, EVP Vanessa Allen Sutherland sold 3,523 shares of the company's stock in a transaction dated Tuesday, July 21st. The shares were sold at an average price of $211.05, for a total value of $743,529.15. Following the sale, the executive vice president owned 27,537 shares in the company, valued at approximately $5,811,683.85. This represents a 11.34% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Richard G. Harbison sold 52,100 shares of the stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $223.76, for a total transaction of $11,657,896.00. Following the transaction, the executive vice president directly owned 39,094 shares in the company, valued at $8,747,673.44. The trade was a 57.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 100,507 shares of company stock valued at $21,770,810. 0.40% of the stock is owned by insiders.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. The Goldman Sachs Group lifted their price objective on shares of Phillips 66 from $207.00 to $235.00 and gave the company a "neutral" rating in a research note on Wednesday, July 22nd. Piper Sandler upped their target price on shares of Phillips 66 from $208.00 to $209.00 and gave the company a "neutral" rating in a research note on Monday, August 10th. Wells Fargo & Company raised their price target on shares of Phillips 66 from $201.00 to $239.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. JPMorgan Chase & Co. lifted their price target on shares of Phillips 66 from $188.00 to $202.00 in a research note on Thursday, April 30th. Finally, Morgan Stanley boosted their price objective on shares of Phillips 66 from $180.00 to $196.00 and gave the stock an "overweight" rating in a report on Friday, June 12th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat.com, Phillips 66 has an average rating of "Moderate Buy" and a consensus target price of $206.56.

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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