Phillips 66 (NYSE:PSX) Hits New 52-Week High - Here's Why

Key Points

• Phillips 66 shares reached a new 52-week high of $236.17, supported by strong quarterly results and generally bullish analyst sentiment. The company reported quarterly EPS of $9.41, exceeding estimates of $7.50, while revenue also surpassed expectations.
• Analysts have raised their price targets, with the stock carrying a consensus “Moderate Buy” rating and an average target of $206.56. Phillips 66 also authorized a $10 billion share-repurchase program, representing up to 11.8% of outstanding shares.
• The company declared a quarterly dividend of $1.27 per share, equal to an annualized $5.08 and a 2.2% yield. Insiders sold approximately $21.8 million of stock over the past 90 days, while institutional investors own 76.93% of the company.

Shares of Phillips 66 (NYSE:PSX - Get Free Report) reached a new 52-week high during mid-day trading on Monday . The company traded as high as $236.17 and last traded at $235.1320, with a volume of 4499 shares. The stock had previously closed at $233.61.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on PSX shares. Jefferies Financial Group lifted their target price on Phillips 66 from $191.00 to $207.00 and gave the company a "hold" rating in a research report on Thursday, July 9th. Weiss Ratings raised shares of Phillips 66 from a "hold (c)" rating to a "buy (b)" rating in a research note on Wednesday. Raymond James Financial lifted their price objective on shares of Phillips 66 from $218.00 to $235.00 and gave the company an "outperform" rating in a report on Monday, July 13th. UBS Group boosted their price objective on shares of Phillips 66 from $212.00 to $235.00 and gave the stock a "buy" rating in a research report on Monday, July 27th. Finally, BMO Capital Markets raised their target price on shares of Phillips 66 from $195.00 to $215.00 and gave the company an "outperform" rating in a research report on Wednesday, May 13th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $206.56.

Phillips 66 Stock Performance

The company has a quick ratio of 1.00, a current ratio of 1.32 and a debt-to-equity ratio of 0.57. The stock's fifty day moving average is $192.72 and its two-hundred day moving average is $176.20. The firm has a market capitalization of $94.02 billion, a price-to-earnings ratio of 13.36, a P/E/G ratio of 0.17 and a beta of 0.68.

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 EPS for the quarter, topping analysts' consensus estimates of $7.50 by $1.91. The business had revenue of $52.04 billion during the quarter, compared to analysts' expectations of $43.60 billion. Phillips 66 had a return on equity of 19.93% and a net margin of 4.54%.During the same quarter last year, the company posted $2.38 earnings per share. On average, analysts predict that Phillips 66 will post 24.44 earnings per share for the current year.

Phillips 66 Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Tuesday, August 18th will be issued a dividend of $1.27 per share. The ex-dividend date of this dividend is Tuesday, August 18th. This represents a $5.08 dividend on an annualized basis and a dividend yield of 2.2%. Phillips 66's payout ratio is presently 28.95%.

Phillips 66 declared that its board has authorized a share repurchase program on Friday, July 31st that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the oil and gas company to repurchase up to 11.8% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In other Phillips 66 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 completion of the transaction, the chief financial officer directly owned 97,376 shares of the company's stock, valued at $18,504,361.28. The trade was a 10.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Vanessa Allen Sutherland sold 3,523 shares of the company's stock in a transaction on Tuesday, July 21st. The shares were sold at an average price of $211.05, for a total transaction of $743,529.15. Following the completion of the transaction, the executive vice president owned 27,537 shares in the company, valued at approximately $5,811,683.85. This represents a 11.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 100,507 shares of company stock worth $21,770,810. Company insiders own 0.40% of the company's stock.

Institutional Investors Weigh In On Phillips 66

A number of institutional investors have recently made changes to their positions in the company. NFSG Corp grew its holdings in Phillips 66 by 105.6% in the 1st quarter. NFSG Corp now owns 146 shares of the oil and gas company's stock valued at $27,000 after buying an additional 75 shares in the last quarter. Axiom Investment Management LLC bought a new position in Phillips 66 during the first quarter worth about $27,000. SWAN Capital LLC boosted its holdings in 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 valued at $27,000 after purchasing an additional 190 shares during the period. Compass Financial Management LLC acquired a new position in shares of Phillips 66 during the 2nd quarter worth approximately $28,000. Finally, Kelleher Financial Advisors bought a new position in shares of Phillips 66 during the second quarter worth approximately $29,000. Institutional investors own 76.93% of the company's stock.

About Phillips 66

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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