Pacific Heights Asset Management LLC Invests $16.91 Million in Phillips 66 $PSX

Key Points

• Pacific Heights Asset Management acquired 100,000 Phillips 66 shares worth approximately $16.91 million in the second quarter, while institutional investors collectively own 76.93% of the stock.
• Phillips 66 reported quarterly EPS of $9.41, exceeding the $7.50 consensus estimate, and revenue of $52.04 billion versus expectations of $43.60 billion.
• The company declared a quarterly dividend of $1.27 and authorized a $10 billion share-repurchase program covering up to 11.8% of outstanding shares; analysts maintain a “Moderate Buy” consensus with a $206.56 average price target.

Pacific Heights Asset Management LLC bought a new position in shares of Phillips 66 (NYSE:PSX - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 100,000 shares of the oil and gas company's stock, valued at approximately $16,905,000.

Other hedge funds also recently added to or reduced their stakes in the company. Coastal Bridge Advisors LLC purchased a new position in shares of Phillips 66 during the second quarter worth about $1,245,000. Jefferies Financial Group Inc. acquired a new stake in shares of Phillips 66 in the 2nd quarter valued at about $696,000. Public Employees Retirement System of Ohio acquired a new stake in shares of Phillips 66 in the 2nd quarter valued at about $29,267,000. MASTERINVEST Kapitalanlage GmbH purchased a new position in Phillips 66 during the 2nd quarter worth approximately $425,000. Finally, Blue Edge Capital LLC purchased a new position in Phillips 66 during the 2nd quarter worth approximately $410,000. 76.93% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the stock. The Goldman Sachs Group raised their target price on shares of Phillips 66 from $207.00 to $235.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 22nd. Piper Sandler increased their price target on shares of Phillips 66 from $208.00 to $209.00 and gave the stock a "neutral" rating in a research note on Monday, August 10th. Citigroup reissued a "neutral" rating on shares of Phillips 66 in a research report on Thursday, August 6th. BMO Capital Markets lifted their price objective on shares of Phillips 66 from $195.00 to $215.00 and gave the company an "outperform" rating in a research note on Wednesday, May 13th. Finally, Tudor Pickering raised shares of Phillips 66 from a "hold" rating to a "strong-buy" rating in a report on Thursday, April 30th. One investment 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's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $206.56.

Phillips 66 Stock Down 0.7%

Shares of NYSE PSX opened at $240.58 on Friday. The stock has a market capitalization of $96.00 billion, a price-to-earnings ratio of 13.71, a price-to-earnings-growth ratio of 0.18 and a beta of 0.68. Phillips 66 has a 52 week low of $126.74 and a 52 week high of $246.95. The firm has a 50-day moving average price of $204.55 and a 200 day moving average price of $182.15. 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 (NYSE:PSX - Get Free Report) last released its quarterly 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. The business had revenue of $52.04 billion during the quarter, compared to the consensus estimate of $43.60 billion. Phillips 66 had a return on equity of 19.93% and a net margin of 4.54%.During the same quarter in the previous year, the company posted $2.38 EPS. Equities research analysts anticipate that Phillips 66 will post 23.86 EPS for the current fiscal year.

Phillips 66 Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 18th will be paid a $1.27 dividend. This represents a $5.08 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Tuesday, August 18th. Phillips 66's payout ratio is presently 28.95%.

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

Insiders Place Their Bets

In related news, CFO Kevin J. Mitchell sold 11,021 shares of the stock in a transaction dated Thursday, July 9th. The stock was sold at an average price of $190.03, for a total transaction of $2,094,320.63. Following the transaction, the chief financial officer directly owned 97,376 shares in the company, valued at approximately $18,504,361.28. This represents a 10.17% decrease in their ownership of the stock. The transaction was disclosed in a filing 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 Brian Mandell sold 30,000 shares of the stock in a transaction dated 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 transaction, the executive vice president owned 61,595 shares in the company, valued at approximately $13,242,925. The trade was a 32.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 100,507 shares of company stock valued at $21,770,810. Insiders own 0.40% of the company's stock.

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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