Phillips 66 $PSX Stock Acquired by AIA Group Ltd

Key Points

• AIA Group sharply increased its Phillips 66 stake by 312.9% in the third quarter, adding 32,078 shares to hold 42,330 shares worth about $10.8 million.
• Phillips 66 reported quarterly EPS of $14.08, beating the $11.73 analyst consensus, and revenue of $50.54 billion, above estimates of $44.91 billion.
• The company authorized a $10 billion share buyback and raised its quarterly dividend from $1.27 to $1.33 per share; the dividend equates to $5.32 annually and a 2.0% yield.

AIA Group Ltd increased its position in shares of Phillips 66 (NYSE:PSX - Free Report) by 312.9% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 42,330 shares of the oil and gas company's stock after purchasing an additional 32,078 shares during the period. AIA Group Ltd's holdings in Phillips 66 were worth $10,807,000 at the end of the most recent quarter.

Several other large investors have also recently bought and sold shares of the business. Next Level Wealth Planning LLC acquired a new stake in Phillips 66 during the 3rd quarter worth $36,000. NFSG Corp increased its position in shares of Phillips 66 by 105.6% during the first quarter. NFSG Corp now owns 146 shares of the oil and gas company's stock worth $27,000 after purchasing an additional 75 shares in the last quarter. Axiom Investment Management LLC acquired a new stake in shares of Phillips 66 during the first quarter worth about $27,000. Compass Financial Management LLC purchased a new stake in shares of Phillips 66 in the 2nd quarter valued at about $28,000. Finally, Putney Financial Group LLC purchased a new stake in shares of Phillips 66 in the 3rd quarter valued at about $43,000. Hedge funds and other institutional investors own 76.93% of the company's stock.

Phillips 66 Trading Down 1.2%

NYSE:PSX opened at $271.86 on Wednesday. The firm has a market cap of $106.05 billion, a P/E ratio of 10.40, a PEG ratio of 0.15 and a beta of 0.69. The company has a current ratio of 1.34, a quick ratio of 1.04 and a debt-to-equity ratio of 0.49. The stock's 50 day simple moving average is $267.41 and its 200-day simple moving average is $199.84. Phillips 66 has a 12-month low of $127.16 and a 12-month high of $299.39.

Phillips 66 (NYSE:PSX - Get Free Report) last posted its quarterly earnings data on Wednesday, October 28th. The oil and gas company reported $14.08 earnings per share for the quarter, beating analysts' consensus estimates of $11.73 by $2.35. The firm had revenue of $50.54 billion for the quarter, compared to analyst estimates of $44.91 billion. Phillips 66 had a net margin of 7.27% and a return on equity of 33.12%. During the same period last year, the firm posted $2.52 EPS. Equities analysts anticipate that Phillips 66 will post 33.22 EPS for the current year.

Phillips 66 declared that its board has authorized a share buyback program on Friday, July 31st that authorizes the company to buy back $10 billion in shares. This buyback authorization authorizes the oil and gas company to reacquire up to 11.8% of its stock through open market purchases. Share buyback programs are typically an indication that the company's board believes its shares are undervalued.

Phillips 66 Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Tuesday, November 17th will be given a $1.33 dividend. The ex-dividend date is Tuesday, November 17th. This is an increase from Phillips 66's previous quarterly dividend of $1.27. This represents a $5.32 dividend on an annualized basis and a yield of 2.0%. Phillips 66's payout ratio is 16.22%.

Insider Transactions at Phillips 66

In related news, EVP Brian Mandell sold 23,400 shares of the company's stock in a transaction 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 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 legal filing with the SEC, which is available at 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 of the company's stock, valued at $8,747,673.44. The trade was a 57.13% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 108,800 shares of company stock valued at $25,016,566. 0.40% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on PSX. Citigroup upped their target price on Phillips 66 from $217.00 to $297.00 and gave the company a "neutral" rating in a research report on Tuesday, October 13th. Weiss Ratings raised Phillips 66 from a "buy (b)" rating to a "buy (b+)" rating in a research report on Thursday, October 8th. BMO Capital Markets boosted their price objective on Phillips 66 from $260.00 to $310.00 and gave the company an "outperform" rating in a research note on Thursday, September 17th. Jefferies Financial Group reissued a "hold" rating and issued a $276.00 price objective on shares of Phillips 66 in a report on Sunday, October 11th. Finally, Raymond James Financial restated an "outperform" rating and set a $335.00 target price on shares of Phillips 66 in a research report on Monday, October 19th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $269.82.

Trending Headlines about Phillips 66

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

• Positive Sentiment: Analyst support: Morgan Stanley issued a Buy rating and raised its price target to $290, implying about 6.7% upside from the cited $271.86 share price. Morgan Stanley Issues a Buy Rating on Phillips 66 (PSX)
• Positive Sentiment: Refining momentum: Zacks included PSX among energy stocks showing momentum after October’s rally, pointing to strong quarterly earnings, favorable refining conditions and improving growth prospects. Buy 3 Energy Stocks as November Momentum Builds Up Post Choppy October
• Positive Sentiment: Renewable-fuels opportunity: Phillips 66’s long-term agreement with Restaurant Technologies will supply traceable used cooking oil for renewable fuel production in California, supporting feedstock availability for sustainable aviation fuel. The longer-term commercial potential may help diversify growth, though the articles provide no financial impact estimate. From Fryer to Flyer: Converting Used Cooking Oil into Sustainable Aviation Fuel
• Neutral Sentiment: Technical signal: Zacks noted PSX moved above its 20-day moving average, a short-term bullish indicator, but this chart signal does not establish a change in the company’s fundamentals. Phillips 66 (PSX) Just Flashed Golden Cross Signal: Do You Buy?
• Negative Sentiment: More cautious rating: Freedom Broker upgraded PSX from Sell to Hold and lifted its target to $258, which remains below the cited share price and signals limited near-term upside in its view. Freedom Broker recommendations

Phillips 66 Profile

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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