Phillips 66 (NYSE:PSX) Short Interest Down 33.0% in August

Key Points

• Phillips 66’s short interest fell 33% in August to 4.95 million shares, representing about 1.2% of shares outstanding and a short-interest ratio of 1.7 days.
• Analysts maintain a broadly positive view, with a consensus “Moderate Buy” rating and an average price target of $211.89; Wells Fargo raised its target to $335.00.
• Shares climbed 2.1% to $251.77 after the company reported quarterly EPS of $9.41, well above estimates, while also declaring a $1.27 quarterly dividend and authorizing a $10 billion share-repurchase program.

Phillips 66 (NYSE:PSX - Get Free Report) was the recipient of a significant drop in short interest during the month of August. As of August 14th, there was short interest totaling 4,945,738 shares, a drop of 33.0% from the July 30th total of 7,381,797 shares. Approximately 1.2% of the company's shares are sold short. Based on an average trading volume of 2,839,091 shares, the short-interest ratio is currently 1.7 days.

Analyst Upgrades and Downgrades

A number of brokerages have commented on PSX. Wells Fargo & Company upped their price target on shares of Phillips 66 from $239.00 to $335.00 and gave the company an "overweight" rating in a research report on Tuesday. Citigroup reissued a "neutral" rating on shares of Phillips 66 in a research note on Thursday, August 6th. Morgan Stanley lifted their target price on Phillips 66 from $180.00 to $196.00 and gave the stock an "overweight" rating in a report on Friday, June 12th. UBS Group boosted their price target on Phillips 66 from $212.00 to $235.00 and gave the company a "buy" rating in a research note on Monday, July 27th. Finally, Raymond James Financial increased their price target on Phillips 66 from $218.00 to $235.00 and gave the stock an "outperform" rating in a report on Monday, July 13th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $211.89.

Insider Buying and Selling at Phillips 66

In other news, CFO Kevin J. Mitchell sold 11,021 shares of Phillips 66 stock in a transaction on Thursday, July 9th. The shares were sold at an average price of $190.03, for a total transaction of $2,094,320.63. Following the transaction, the chief financial officer 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible 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 business's stock in a transaction 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 completion of the sale, the executive vice president directly owned 27,537 shares in the company, valued at approximately $5,811,683.85. This represents 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 sold a total of 100,507 shares of company stock worth $21,770,810 over the last ninety days. Insiders own 0.40% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. NFSG Corp lifted its stake in Phillips 66 by 105.6% during the 1st quarter. NFSG Corp now owns 146 shares of the oil and gas company's stock valued at $27,000 after acquiring an additional 75 shares in the last quarter. Axiom Investment Management LLC purchased a new stake in shares of Phillips 66 during the 1st quarter worth approximately $27,000. SWAN Capital LLC raised its holdings in shares of Phillips 66 by 1,055.6% in the 4th quarter. SWAN Capital LLC now owns 208 shares of the oil and gas company's stock worth $27,000 after purchasing an additional 190 shares during the period. Compass Financial Management LLC purchased a new position in Phillips 66 in the second quarter valued at approximately $28,000. Finally, Kelleher Financial Advisors purchased a new position in Phillips 66 in the second quarter valued at approximately $29,000. Institutional investors own 76.93% of the company's stock.

Phillips 66 Stock Up 2.1%

Shares of PSX traded up $5.19 during trading hours on Tuesday, hitting $251.77. The stock had a trading volume of 3,095,631 shares, compared to its average volume of 2,828,252. The company has a debt-to-equity ratio of 0.57, a current ratio of 1.32 and a quick ratio of 1.00. The firm has a 50 day simple moving average of $207.69 and a 200-day simple moving average of $183.39. The firm has a market capitalization of $100.46 billion, a P/E ratio of 14.35, a price-to-earnings-growth ratio of 0.18 and a beta of 0.68. Phillips 66 has a 1-year low of $126.74 and a 1-year high of $252.05.

Phillips 66 (NYSE:PSX - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The oil and gas company reported $9.41 earnings per share for the quarter, topping analysts' consensus estimates of $7.50 by $1.91. The business had revenue of $52.04 billion for the quarter, compared to the consensus estimate 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 in the prior year, the business earned $2.38 EPS. Sell-side analysts predict that Phillips 66 will post 23.86 EPS for the current fiscal year.

Phillips 66 Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 18th will be paid a dividend of $1.27 per share. The ex-dividend date is Tuesday, August 18th. This represents a $5.08 dividend on an annualized basis and a yield of 2.0%. Phillips 66's payout ratio is 28.95%.

Phillips 66 announced that its Board of Directors has approved a share repurchase program on Friday, July 31st that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the oil and gas company to purchase up to 11.8% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board believes its stock is undervalued.

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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