Phillips 66 $PSX Stock Sold by Convergence Financial LLC

Key Points

• Convergence Financial LLC cut its Phillips 66 position by 50% in the third quarter, selling 4,979 shares and retaining holdings worth approximately $1.27 million. Institutional investors and hedge funds still own 76.93% of the company.
• Analyst sentiment remains positive overall, with Phillips 66 carrying a “Moderate Buy” consensus rating and an average price target of $269.88, though recommendations range from “Hold” to “Strong Buy.”
• Phillips 66 reported a major quarterly earnings beat, posting $14.08 in EPS on $50.54 billion in revenue, while raising its quarterly dividend to $1.33 and maintaining a $10 billion share-repurchase authorization.

Convergence Financial LLC trimmed its position in shares of Phillips 66 (NYSE:PSX - Free Report) by 50.0% in the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 4,979 shares of the oil and gas company's stock after selling 4,979 shares during the period. Convergence Financial LLC's holdings in Phillips 66 were worth $1,271,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also made changes to their positions in the company. Pointe Capital Management LLC boosted its holdings in Phillips 66 by 4.3% in the second quarter. Pointe Capital Management LLC now owns 1,261 shares of the oil and gas company's stock valued at $213,000 after acquiring an additional 52 shares during the last quarter. Community Financial Services Group LLC grew its position in Phillips 66 by 9.2% during the third quarter. Community Financial Services Group LLC now owns 615 shares of the oil and gas company's stock valued at $163,000 after acquiring an additional 52 shares during the period. AMI Investment Management Inc. grew its position in Phillips 66 by 3.1% during the third quarter. AMI Investment Management Inc. now owns 1,752 shares of the oil and gas company's stock valued at $447,000 after acquiring an additional 53 shares during the period. Key Client Fiduciary Advisors LLC grew its position in Phillips 66 by 3.5% during the second quarter. Key Client Fiduciary Advisors LLC now owns 1,624 shares of the oil and gas company's stock valued at $275,000 after acquiring an additional 55 shares during the period. Finally, Threadgill Financial LLC increased its stake in Phillips 66 by 3.5% during the second quarter. Threadgill Financial LLC now owns 1,693 shares of the oil and gas company's stock worth $286,000 after acquiring an additional 58 shares during the last quarter. 76.93% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research firms have recently commented on PSX. Mizuho downgraded Phillips 66 from an "outperform" rating to a "neutral" rating and raised their price objective for the stock from $220.00 to $300.00 in a report on Thursday, October 8th. BMO Capital Markets boosted their target price on Phillips 66 from $260.00 to $310.00 and gave the stock an "outperform" rating in a report on Thursday, September 17th. Raymond James Financial reiterated an "outperform" rating and set a $335.00 target price on shares of Phillips 66 in a report on Monday, October 19th. Wells Fargo & Company increased their target price on shares of Phillips 66 from $335.00 to $345.00 and gave the stock an "overweight" rating in a research report on Wednesday, October 14th. Finally, UBS Group raised their price target on shares of Phillips 66 from $235.00 to $300.00 and gave the company a "buy" rating in a report on Tuesday, September 8th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $269.88.

Phillips 66 News Summary

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

• Positive Sentiment: Record profit and earnings beat: Phillips 66 reported approximately $5.6 billion in adjusted third-quarter earnings, or $14.08 per diluted share, versus consensus estimates near $11.7–$12.0 per share and $2.52 a year earlier. Revenue also exceeded expectations at $50.54 billion. Phillips 66 beats quarterly profit estimates as refining margins soar
• Positive Sentiment: Refining strength drove the result: Refining earnings nearly doubled sequentially to $6.03 billion, supported by wider margins, higher volumes and 98% utilization. Record Central Corridor processed-input volume and stronger fuel-export demand linked to Middle East tensions further supported profitability. Phillips 66 Q3 Earnings Beat Estimates on Strong Refining Margins
• Positive Sentiment: Cash generation and balance-sheet improvement: Operating cash flow totaled roughly $7.3 billion. The company returned $2.8 billion through dividends and share repurchases and reduced total debt by about $2 billion to $18.5 billion, strengthening the shareholder-return story. Phillips 66: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Strong results may reflect peak-cycle conditions: The quarter benefited from unusually favorable refining margins, while midstream volumes also remained solid. Investors will likely focus on whether these conditions persist into the fourth quarter.
• Negative Sentiment: Margin and valuation risks remain: Gasoline prices and expectations for increased fuel supply had raised concerns that refining margins could cool. Analysts had also warned that much of the sector’s earnings recovery was already reflected in share prices, potentially limiting further upside after the rebound. Phillips 66 Slides as Traders Reassess Refining Upside Ahead of Earnings

Insider Transactions at Phillips 66

In other news, EVP Richard Harbison sold 52,100 shares of the stock in a transaction dated 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 sale, the executive vice president owned 39,094 shares in the company, valued at approximately $8,747,673.44. This trade represents a 57.13% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Brian Mandell sold 23,400 shares of the firm's stock in a transaction dated 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 sale, the executive vice president owned 61,595 shares in the company, valued at approximately $16,326,370.70. The trade was a 27.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 108,800 shares of company stock valued at $25,016,566. Insiders own 0.40% of the company's stock.

Phillips 66 Stock Up 1.9%

Shares of Phillips 66 stock opened at $273.51 on Thursday. The company has a fifty day moving average price of $264.69 and a 200 day moving average price of $197.13. The company has a current ratio of 1.32, a quick ratio of 1.00 and a debt-to-equity ratio of 0.57. Phillips 66 has a twelve month low of $127.16 and a twelve month high of $299.39. The stock has a market cap of $109.14 billion, a price-to-earnings ratio of 15.58, a price-to-earnings-growth ratio of 0.16 and a beta of 0.71.

Phillips 66 (NYSE:PSX - Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The oil and gas company reported $14.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $11.73 by $2.35. Phillips 66 had a return on equity of 19.93% and a net margin of 4.54%. The firm had revenue of $50.54 billion during the quarter, compared to the consensus estimate of $44.91 billion. During the same period in the prior year, the firm earned $2.52 EPS. Equities research analysts forecast that Phillips 66 will post 31.39 earnings per share for the current fiscal year.

Phillips 66 Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Tuesday, November 17th will be paid a $1.33 dividend. This represents a $5.32 dividend on an annualized basis and a dividend yield of 1.9%. This is an increase from Phillips 66's previous quarterly dividend of $1.27. The ex-dividend date is Tuesday, November 17th. Phillips 66's payout ratio is 30.31%.

Phillips 66 announced that its Board of Directors has initiated a stock buyback plan on Friday, July 31st that permits the company to repurchase $10 billion in outstanding shares. This repurchase authorization permits the oil and gas company to repurchase up to 11.8% of its shares through open market purchases. Share repurchase plans are typically a sign that the company's board of directors believes its shares are undervalued.

About Phillips 66

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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