Perpetual Ltd Acquires 4,142 Shares of Phillips 66 $PSX

Key Points

• Perpetual Ltd increased its Phillips 66 stake by 71.4% in the third quarter, adding 4,142 shares to hold 9,947 shares worth approximately $2.54 million. Institutional investors collectively own 76.93% of PSX.
• Analysts remain broadly positive, with the stock carrying a “Moderate Buy” consensus and an average price target of $266.25. Phillips 66 also authorized a $10 billion share-repurchase program, while recent earnings significantly exceeded expectations.
• Potential risks include a possible Bayway refinery strike, insider selling and concerns that the stock’s rally has already priced in improved refining margins. PSX recently traded near its 52-week high of $292.88.

Perpetual Ltd grew its holdings in Phillips 66 (NYSE:PSX - Free Report) by 71.4% in the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 9,947 shares of the oil and gas company's stock after purchasing an additional 4,142 shares during the quarter. Perpetual Ltd's holdings in Phillips 66 were worth $2,540,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in PSX. BlackRock Inc. purchased a new position in Phillips 66 in the second quarter valued at $5,766,779,000. State Street Corp increased its holdings in Phillips 66 by 1.1% during the 2nd quarter. State Street Corp now owns 26,044,694 shares of the oil and gas company's stock worth $4,402,856,000 after purchasing an additional 271,841 shares during the period. Bank of New York Mellon Corp purchased a new stake in Phillips 66 during the 2nd quarter worth about $1,093,206,000. Amundi increased its holdings in Phillips 66 by 62.0% during the 1st quarter. Amundi now owns 3,667,451 shares of the oil and gas company's stock worth $668,137,000 after purchasing an additional 1,403,493 shares during the period. Finally, Bank of America Corp DE raised its position in Phillips 66 by 1.2% in the 1st quarter. Bank of America Corp DE now owns 2,971,036 shares of the oil and gas company's stock valued at $541,263,000 after purchasing an additional 35,167 shares in the last quarter. Institutional investors and hedge funds own 76.93% of the company's stock.

Key Headlines Impacting Phillips 66

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

• Positive Sentiment: Analysts expect robust year-over-year earnings growth when Phillips 66 reports third-quarter results on October 28, increasing optimism that stronger refining margins will translate into a significant profit beat. Earnings Preview: What to Expect From Phillips 66's Report
• Positive Sentiment: A bullish Seeking Alpha analysis argues that Russian supply disruptions and instability in the Gulf could prolong refined-product scarcity and elevated crack spreads. The analyst rates PSX a Buy and estimates a potential value of $346 per share. Phillips 66: Missing A Premium Valuation
• Positive Sentiment: Phillips 66 is expanding the use of artificial intelligence at its refineries to accelerate troubleshooting, improve maintenance and reduce costs. Reported savings already exceed $1 per barrel, offering a potential structural boost to margins and cash flow. Can AI Drive Refining Efficiency & Profits for Phillips 66?
• Positive Sentiment: Barclays raised its price target to $282 from $216, while JPMorgan lifted its target to $275 from $234. The increases reflect improved earnings expectations, although Barclays retained an Equal Weight rating. JPMorgan Adjusts Price Target on Phillips 66
• Neutral Sentiment: DBS reaffirmed its Hold rating, highlighting that the recent rally has already incorporated much of the expected improvement. DBS Reaffirms Their Hold Rating on Phillips 66
• Negative Sentiment: Union employees at the Bayway refinery overwhelmingly authorized a strike as their contract expiration approaches. A work stoppage could disrupt operations, increase costs and pressure near-term earnings if negotiations fail. Will Phillips 66 Face a Bayway Refinery Strike?
• Negative Sentiment: Some valuation analysis suggests PSX may be overextended after its powerful advance, with strike risks and the possibility of normalized refining margins limiting further upside. Phillips 66 Stock May Be 42% Undervalued As Strike Risks Loom

Analyst Upgrades and Downgrades

PSX has been the subject of a number of analyst reports. Barclays boosted their price objective on Phillips 66 from $216.00 to $282.00 and gave the stock an "equal weight" rating in a research report on Monday. Jefferies Financial Group reaffirmed a "hold" rating and issued a $276.00 target price on shares of Phillips 66 in a report on Sunday. Wall Street Zen upgraded shares of Phillips 66 from a "buy" rating to a "strong-buy" rating in a research note on Sunday, July 26th. Mizuho restated a "neutral" rating and issued a $300.00 price objective (up from $220.00) on shares of Phillips 66 in a report on Thursday, October 8th. Finally, Zacks Research raised shares of Phillips 66 from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 7th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $266.25.

Phillips 66 Stock Performance

Shares of Phillips 66 stock opened at $292.56 on Wednesday. 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 52 week low of $126.92 and a 52 week high of $292.88. The firm's 50 day moving average is $251.35 and its two-hundred day moving average is $204.92. The firm has a market capitalization of $116.74 billion, a P/E ratio of 18.90 and a beta of 0.71.

Phillips 66 (NYSE:PSX - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The oil and gas company reported $9.41 earnings per share for the quarter, topping the consensus estimate of $7.50 by $1.91. Phillips 66 had a net margin of 4.54% and a return on equity of 19.93%. The business had revenue of $51 billion during the quarter, compared to the consensus estimate of $43.60 billion. During the same quarter in the previous year, the firm earned $2.38 EPS. Research analysts forecast that Phillips 66 will post 29.05 EPS for the current fiscal year.

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

Insider Buying and Selling

In other Phillips 66 news, EVP Brian Mandell sold 23,400 shares of the company's stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $265.06, for a total value of $6,202,404.00. Following the completion of the transaction, the executive vice president owned 61,595 shares in the company, valued at $16,326,370.70. This represents a 27.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Vanessa Sutherland sold 3,523 shares of the firm's stock in a transaction dated Tuesday, July 21st. The stock was sold at an average price of $211.05, for a total value of $743,529.15. Following the transaction, the executive vice president directly owned 27,537 shares in the company, valued at approximately $5,811,683.85. The trade was a 11.34% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 112,886 shares of company stock worth $25,878,894 in the last ninety days. 0.40% of the stock is owned by corporate insiders.

Phillips 66 Profile

Phillips 66 is an energy manufacturing and logistics company engaged in the processing, transportation, storage and marketing of energy products. Its operations include refining crude oil into gasoline, diesel, jet fuel, lubricants and other refined products, as well as distributing and marketing fuels under the Phillips 66, 76 and JET brands.

The company also operates midstream infrastructure, including pipelines, terminals, processing facilities and storage assets that support the movement of crude oil, natural gas liquids and refined products.

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