Phillips 66 $PSX Shares Bought by Eldred Rock Partners LLC

Key Points

• Eldred Rock Partners increased its Phillips 66 stake by 6.5% in the second quarter, purchasing 6,003 additional shares for a total of 97,837 shares valued at approximately $16.5 million. Institutional investors collectively own 76.93% of PSX.
• Phillips 66 reported substantially stronger quarterly results, with $9.41 in earnings per share versus the $7.50 consensus estimate, as refining margins more than doubled. Management expects tight supply and limited refining capacity to support strong margins through 2027.
• The company authorized a $10 billion share-repurchase plan and declared a quarterly dividend of $1.27, while analysts maintain a “Moderate Buy” consensus. However, the stock is near its 12-month high, and recent insider selling plus the risk of normalizing refining margins remain important considerations.

Eldred Rock Partners LLC raised its holdings in Phillips 66 (NYSE:PSX - Free Report) by 6.5% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 97,837 shares of the oil and gas company's stock after purchasing an additional 6,003 shares during the period. Phillips 66 accounts for approximately 3.6% of Eldred Rock Partners LLC's portfolio, making the stock its 12th largest holding. Eldred Rock Partners LLC's holdings in Phillips 66 were worth $16,539,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of PSX. Accordant Advisory Group Inc lifted its stake in Phillips 66 by 900.0% in the 4th quarter. Accordant Advisory Group Inc now owns 200 shares of the oil and gas company's stock valued at $26,000 after buying an additional 180 shares in the last quarter. Eagle Bay Advisors LLC purchased a new position in Phillips 66 during the fourth quarter worth $27,000. NFSG Corp raised its holdings in shares of Phillips 66 by 105.6% in the first quarter. NFSG Corp now owns 146 shares of the oil and gas company's stock worth $27,000 after acquiring an additional 75 shares during the last quarter. Axiom Investment Management LLC purchased a new stake in shares of Phillips 66 in the first quarter valued at $27,000. Finally, SWAN Capital LLC boosted its stake in shares of Phillips 66 by 1,055.6% during the fourth quarter. SWAN Capital LLC now owns 208 shares of the oil and gas company's stock valued at $27,000 after acquiring an additional 190 shares during the last quarter. 76.93% of the stock is owned by hedge funds and other institutional investors.

Phillips 66 News Roundup

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

• Positive Sentiment: Record earnings and broad-based operating improvement: Second-quarter adjusted earnings reached approximately $3.8 billion, with net profit rising sharply as refining margins more than doubled. Refining, midstream, chemicals and marketing all contributed, while stronger execution helped the company exceed earnings expectations. Phillips 66 Profit Jumps as Refining Margins More Than Double
• Positive Sentiment: Favorable refining outlook: Management said tight product supply and limited refining capacity could keep margins strong through 2027, extending the period of elevated profitability. Phillips 66 sees strong refining margins continuing through 2027
• Positive Sentiment: Balance-sheet and shareholder-return catalysts: Debt reduction, midstream growth and potential for enhanced capital returns are improving the investment case. TD Cowen maintained a Buy rating and raised its price target to $255 from $240, citing stronger fundamentals and a healthier balance sheet. TD Cowen raises Phillips 66 price target
• Neutral Sentiment: Analyst sentiment is positive but not unanimous: Brokerages collectively rate PSX a “Moderate Buy,” while a fair-value estimate increased to $207.53. However, Bank of America reiterated a Hold rating with a $213 target, indicating some analysts view much of the upside as already reflected. Phillips 66 receives Moderate Buy recommendation
• Negative Sentiment: Cyclical and valuation risks remain: The stock is near its 12-month high after a substantial rally, leaving investors concerned that refining margins may normalize and that current earnings could represent a peak. That caution may be limiting further gains despite the upbeat results.

Insider Activity at Phillips 66

In related news, CFO Kevin J. Mitchell sold 11,021 shares of the business's stock in a transaction that occurred on Thursday, July 9th. The shares were sold at an average price of $190.03, for a total value of $2,094,320.63. Following the completion of the sale, the chief financial officer directly owned 97,376 shares in the company, valued at approximately $18,504,361.28. The trade was a 10.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Vanessa Allen Sutherland sold 3,523 shares of the company's stock in a transaction that occurred on Tuesday, July 21st. The stock was sold at an average price of $211.05, for a total transaction of $743,529.15. Following the transaction, the executive vice president directly owned 27,537 shares of the company's stock, valued at $5,811,683.85. This trade represents a 11.34% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 15,707 shares of company stock worth $3,059,584 over the last three months. Corporate insiders own 0.40% of the company's stock.

Phillips 66 Stock Performance

NYSE PSX opened at $204.05 on Friday. The business's 50-day moving average price is $188.40 and its 200 day moving average price is $172.95. Phillips 66 has a twelve month low of $118.07 and a twelve month high of $216.08. The company has a market capitalization of $81.42 billion, a PE ratio of 11.63, a price-to-earnings-growth ratio of 0.16 and a beta of 0.68. The company has a current ratio of 1.32, a quick ratio of 0.85 and a debt-to-equity ratio of 0.57.

Phillips 66 (NYSE:PSX - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The oil and gas company reported $9.41 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $7.50 by $1.91. The firm 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 last year, the company earned $2.38 EPS. On average, research analysts predict that Phillips 66 will post 22.43 earnings per share for the current year.

Phillips 66 declared that its Board of Directors has authorized a share buyback plan on Friday, July 31st that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the oil and gas company to reacquire up to 11.8% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Phillips 66 Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Tuesday, August 18th will be given a $1.27 dividend. The ex-dividend date of this dividend is Tuesday, August 18th. This represents a $5.08 annualized dividend and a dividend yield of 2.5%. Phillips 66's dividend payout ratio (DPR) is currently 28.95%.

Wall Street Analyst Weigh In

A number of research firms recently commented on PSX. JPMorgan Chase & Co. lifted their price objective on Phillips 66 from $188.00 to $202.00 in a research report on Thursday, April 30th. Jefferies Financial Group raised their price target on shares of Phillips 66 from $191.00 to $207.00 and gave the stock a "hold" rating in a research note on Thursday, July 9th. Barclays lifted their price target on shares of Phillips 66 from $183.00 to $216.00 and gave the stock an "equal weight" rating in a report on Thursday. Piper Sandler reissued a "neutral" rating and issued a $208.00 price objective on shares of Phillips 66 in a research report on Thursday, July 23rd. Finally, Wells Fargo & Company upped their price objective on shares of Phillips 66 from $201.00 to $239.00 and gave the company an "overweight" rating in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat, Phillips 66 currently has a consensus rating of "Moderate Buy" and an average price target of $206.50.

Phillips 66 Company Profile

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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