Phillips 66 $PSX Stock: International Assets Investment Management LLC Boosts Holdings

Key Points

• International Assets Investment Management increased its Phillips 66 stake by 35.7% in the third quarter to 24,747 shares valued at approximately $6.3 million. Institutional investors and hedge funds collectively own 76.93% of PSX.
• Phillips 66 reported quarterly earnings of $14.08 per share, beating the $11.73 analyst consensus, while revenue also exceeded expectations. Shares opened at $283.18, near the company’s 52-week high of $299.39.
• The company raised its quarterly dividend to $1.33 per share and has authorization to repurchase up to $10 billion, or 11.8% of outstanding shares. Analysts maintain a consensus “Moderate Buy” rating with a $270.19 target price.

International Assets Investment Management LLC lifted its holdings in Phillips 66 (NYSE:PSX - Free Report) by 35.7% during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 24,747 shares of the oil and gas company's stock after purchasing an additional 6,517 shares during the quarter. International Assets Investment Management LLC's holdings in Phillips 66 were worth $6,318,000 as of its most recent SEC filing.

Several other large investors have also added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in Phillips 66 during the 2nd quarter worth about $5,766,779,000. State Street Corp grew its holdings in shares of Phillips 66 by 1.1% in the 2nd quarter. State Street Corp now owns 26,044,694 shares of the oil and gas company's stock valued at $4,402,856,000 after acquiring an additional 271,841 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of Phillips 66 in the second quarter valued at about $1,093,206,000. Amundi raised its holdings in Phillips 66 by 62.0% during the first quarter. Amundi now owns 3,667,451 shares of the oil and gas company's stock worth $668,137,000 after acquiring an additional 1,403,493 shares in the last quarter. Finally, Bank of America Corp DE raised its holdings in Phillips 66 by 1.2% during the first quarter. Bank of America Corp DE now owns 2,971,036 shares of the oil and gas company's stock worth $541,263,000 after acquiring an additional 35,167 shares in the last quarter. Institutional investors and hedge funds own 76.93% of the company's stock.

Phillips 66 Stock Performance

Shares of Phillips 66 stock opened at $283.18 on Monday. 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 company has a market cap of $110.46 billion, a PE ratio of 9.04, a price-to-earnings-growth ratio of 0.15 and a beta of 0.69. The company has a 50 day moving average of $266.19 and a 200-day moving average of $198.51. Phillips 66 has a 1-year low of $127.16 and a 1-year high of $299.39.

Phillips 66 (NYSE:PSX - Get Free Report) last posted its quarterly earnings results on Wednesday, October 28th. The oil and gas company reported $14.08 EPS for the quarter, topping analysts' consensus estimates of $11.73 by $2.35. Phillips 66 had a return on equity of 33.12% and a net margin of 7.27%. The company had revenue of $50.54 billion during the quarter, compared to analysts' expectations of $44.91 billion. During the same quarter in the previous year, the firm earned $2.52 EPS. As a group, equities research analysts forecast that Phillips 66 will post 33.11 earnings per share for the current fiscal year.

Phillips 66 declared that its Board of Directors has approved a share repurchase program on Friday, July 31st that allows the company to buy back $10 billion in outstanding shares. This buyback authorization allows the oil and gas company to buy up to 11.8% of its shares through open market purchases. Stock buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

Phillips 66 Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Tuesday, November 17th will be issued a $1.33 dividend. This represents a $5.32 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Tuesday, November 17th. This is a boost from Phillips 66's previous quarterly dividend of $1.27. Phillips 66's payout ratio is currently 16.22%.

Insider Activity

In related news, EVP Richard G. Harbison sold 52,100 shares of Phillips 66 stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $223.76, for a total transaction of $11,657,896.00. Following the sale, the executive vice president directly owned 39,094 shares in the company, valued at $8,747,673.44. This trade represents a 57.13% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Brian Mandell sold 30,000 shares of the business's stock in a transaction that occurred on 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 sale, the executive vice president directly owned 61,595 shares in the company, valued at $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. Insiders sold 108,800 shares of company stock valued at $25,016,566 over the last quarter. Corporate insiders own 0.40% of the company's stock.

Analyst Ratings Changes

Several research firms have weighed in on PSX. BMO Capital Markets boosted their price target on Phillips 66 from $260.00 to $310.00 and gave the stock an "outperform" rating in a research report on Thursday, September 17th. Jefferies Financial Group reissued a "hold" rating and issued a $276.00 target price on shares of Phillips 66 in a research note on Sunday, October 11th. The Goldman Sachs Group boosted their target price on shares of Phillips 66 from $245.00 to $274.00 and gave the stock a "neutral" rating in a report on Wednesday, September 30th. Weiss Ratings raised shares of Phillips 66 from a "buy (b)" rating to a "buy (b+)" rating in a research report on Thursday, October 8th. Finally, Barclays raised their target price on shares of Phillips 66 from $216.00 to $282.00 and gave the company an "equal weight" rating in a research note on Monday, October 12th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat, Phillips 66 currently has an average rating of "Moderate Buy" and a consensus target price of $270.19.

Phillips 66 News Summary

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

• Positive Sentiment: Phillips 66 reported adjusted earnings per share of $14.08, well above the $11.73 analyst consensus and up sharply year over year. Revenue also exceeded expectations, while record refining margins, 98% refinery utilization and a 41% distillate yield drove the profit surge. Phillips 66 Posts Strong Earnings But the Stock Doesn't Care
• Positive Sentiment: Management highlighted continued strength in refining and midstream, progress on debt reduction and shareholder returns, and investment in long-term projects such as the Western Gateway Pipeline system. These initiatives could improve cash flow durability and reduce leverage. PSX Q3 Earnings Call Highlights Refining Strength and Growth Plans
• Positive Sentiment: The company raised its quarterly dividend to $1.33 per share and continued substantial share repurchases, reinforcing the income and capital-return case for investors. Learn Why The Bull Case For Phillips 66 Stock Could Change Following Earnings Beat
• Positive Sentiment: Some coverage argues that PSX may still be undervalued despite its significant multiyear advance, citing record profitability, robust midstream volumes, deleveraging and a relatively low reported valuation multiple. Phillips 66 Stock Could Be Undervalued

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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