Phillips 66 (NYSE:PSX) Cut to Buy at Wall Street Zen

Key Points

• Wall Street Zen downgraded Phillips 66 (PSX) from a "strong-buy" to a "buy" rating.
• Multiple major brokers have raised price targets (e.g., UBS, JPMorgan, Wells Fargo), leaving a consensus target of about $180.72 and an average rating of "Moderate Buy."
• Phillips 66 disclosed a roughly $900 million derivatives loss tied to net-short commodity positions, posing a near-term earnings and cash-flow risk amid crude and diesel volatility.

Phillips 66 (NYSE:PSX - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

PSX has been the subject of a number of other research reports. Morgan Stanley boosted their target price on Phillips 66 from $140.00 to $147.00 and gave the stock an "equal weight" rating in a research report on Thursday, February 5th. UBS Group boosted their target price on Phillips 66 from $172.00 to $212.00 and gave the stock a "buy" rating in a research report on Thursday, April 2nd. Barclays boosted their target price on Phillips 66 from $158.00 to $177.00 and gave the stock an "equal weight" rating in a research report on Wednesday. JPMorgan Chase & Co. boosted their target price on Phillips 66 from $161.00 to $188.00 and gave the stock an "overweight" rating in a research report on Wednesday. Finally, Wells Fargo & Company boosted their price objective on Phillips 66 from $163.00 to $201.00 and gave the company an "overweight" rating in a research report on Tuesday, March 31st. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eleven have given a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $180.72.

Phillips 66 Stock Performance

NYSE:PSX opened at $159.44 on Friday. The business has a 50 day moving average of $165.68 and a 200 day moving average of $146.21. The company has a market capitalization of $63.90 billion, a price-to-earnings ratio of 14.74, a PEG ratio of 0.29 and a beta of 0.76. Phillips 66 has a 1-year low of $93.50 and a 1-year high of $190.61. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.30 and a quick ratio of 0.91.

Phillips 66 (NYSE:PSX - Get Free Report) last released its earnings results on Wednesday, February 4th. The oil and gas company reported $2.47 earnings per share for the quarter, topping analysts' consensus estimates of $2.15 by $0.32. The company had revenue of $32.16 billion during the quarter, compared to the consensus estimate of $33.81 billion. Phillips 66 had a return on equity of 9.13% and a net margin of 3.22%.During the same quarter in the previous year, the company posted ($0.15) EPS. On average, sell-side analysts predict that Phillips 66 will post 6.8 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Phillips 66 news, EVP Don Baldridge sold 7,500 shares of the business's stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $160.00, for a total value of $1,200,000.00. Following the sale, the executive vice president directly owned 38,488 shares of the company's stock, valued at approximately $6,158,080. The trade was a 16.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Lisa Ann Davis sold 3,800 shares of the business's stock in a transaction on Friday, March 13th. The stock was sold at an average price of $174.37, for a total value of $662,606.00. Following the completion of the sale, the director directly owned 8,701 shares in the company, valued at $1,517,193.37. This trade represents a 30.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 95,923 shares of company stock valued at $16,399,619 over the last 90 days. 0.22% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Phillips 66

Hedge funds have recently added to or reduced their stakes in the stock. Oppenheimer & Co. Inc. lifted its stake in shares of Phillips 66 by 57.4% during the 3rd quarter. Oppenheimer & Co. Inc. now owns 56,858 shares of the oil and gas company's stock worth $7,734,000 after acquiring an additional 20,742 shares during the last quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT increased its holdings in Phillips 66 by 5.0% during the 3rd quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 209,700 shares of the oil and gas company's stock worth $28,523,000 after purchasing an additional 10,000 shares during the period. TD Asset Management Inc increased its holdings in Phillips 66 by 15.5% during the 3rd quarter. TD Asset Management Inc now owns 174,413 shares of the oil and gas company's stock worth $23,724,000 after purchasing an additional 23,364 shares during the period. First National Bank of Omaha purchased a new position in Phillips 66 during the 3rd quarter worth $2,357,000. Finally, Caprock Group LLC purchased a new position in Phillips 66 during the 3rd quarter worth $2,412,000. 76.93% of the stock is owned by institutional investors.

Key Stories Impacting Phillips 66

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

• Positive Sentiment: Multiple bullish analyst actions: Wolfe Research and UBS published buy calls, reinforcing a positive long-term view on execution and cash return potential. Phillips 66 (PSX) Gets a Buy from Wolfe Research UBS Sticks to Their Buy Rating for Phillips 66 (PSX)
• Positive Sentiment: Valuation lifts from independent research: a recent fair-value update raised PSX’s assessed value (from US$165.45 to ~US$179.10), reflecting higher pricing assumptions across the Street. This supports a higher base for targets. How The Evolving Investment Story Is Shaping Phillips 66 (PSX) Valuation Targets
• Positive Sentiment: Broker price-target increases continue: independent outlets and aggregators show new targets in the high $170s–$195 range, supporting upside versus recent levels. Example: a $195 target was published and several banks raised targets this week. Phillips 66 NYSE: PSX Price Target Raised to $195.00
• Neutral Sentiment: Goldman Sachs raised its price target to $192 but kept a neutral rating — that implies upside in target but not an upgrade in conviction. Goldman Sachs adjusts price target on Phillips 66 to $192
• Neutral Sentiment: Context on refining economics: industry coverage notes that refiners are still seeing elevated “war-era” crack spreads (strong near-term margins), which supports earnings but leaves PSX exposed to swings in crude and product prices. Crude Fell, The Crack Spread Didn't: 6 Refiner Stocks To Watch This Earnings Season
• Negative Sentiment: Company-disclosed derivatives hit: Phillips 66 flagged roughly a $900 million derivatives loss tied to net-short commodity positions as oil and diesel surged amid geopolitical-driven crude volatility — a direct, near-term earnings/cash-impact item and clear reason for investor caution. Phillips 66 Flags $900 Million Derivatives Loss As Oil Surges 68%
• Negative Sentiment: Ongoing commodity exposure and crude trade-flow risk: analysts raising targets continue to warn that PSX’s earnings remain sensitive to crude/diesel swings and refining cracks; the recent geopolitical shock is reinforcing that risk premium and likely pressured the stock. Phillips 66: Strong Execution, But The Stock Got There First

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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