Phillips 66 (NYSE:PSX) Issues Quarterly Earnings Results

Key Points

• Phillips 66 reported a strong quarterly earnings result with an EPS of $2.38, exceeding the consensus estimate of $1.79, while revenues reached $33.77 billion, above the expected $32.11 billion.
• The company announced a quarterly dividend of $1.20 per share, with a projected annual yield of 3.84%, despite having a high dividend payout ratio of 109.34%.
• Analysts have set a consensus rating of "Hold" for Phillips 66, with an average price target of $135.20, reflecting varying expectations among investment firms regarding the stock's performance.

Phillips 66 (NYSE:PSX - Get Free Report) released its earnings results on Friday. The oil and gas company reported $2.38 EPS for the quarter, topping the consensus estimate of $1.79 by $0.59, Zacks reports. Phillips 66 had a return on equity of 4.83% and a net margin of 1.32%. The business had revenue of $33.77 billion for the quarter, compared to the consensus estimate of $32.11 billion. During the same period in the previous year, the company posted $2.31 earnings per share.

Phillips 66 Stock Performance

Phillips 66 stock traded up $0.59 during mid-day trading on Friday, reaching $124.91. 3,666,335 shares of the stock traded hands, compared to its average volume of 2,778,111. The stock has a market capitalization of $50.89 billion, a PE ratio of 28.45, a price-to-earnings-growth ratio of 1.81 and a beta of 1.02. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.23 and a quick ratio of 0.88. Phillips 66 has a 12-month low of $91.01 and a 12-month high of $150.12. The business's 50-day moving average is $121.55 and its 200-day moving average is $118.59.

Phillips 66 Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 2nd. Investors of record on Tuesday, August 19th will be given a dividend of $1.20 per share. This represents a $4.80 dividend on an annualized basis and a yield of 3.84%. The ex-dividend date of this dividend is Tuesday, August 19th. Phillips 66's dividend payout ratio (DPR) is presently 109.34%.

Analysts Set New Price Targets

Several research firms have commented on PSX. Evercore ISI began coverage on Phillips 66 in a report on Wednesday, June 18th. They issued an "outperform" rating and a $130.00 target price on the stock. Mizuho boosted their target price on Phillips 66 from $132.00 to $138.00 and gave the stock a "neutral" rating in a report on Tuesday, May 13th. Cantor Fitzgerald began coverage on Phillips 66 in a report on Wednesday, June 18th. They issued a "neutral" rating on the stock. Wall Street Zen raised Phillips 66 from a "sell" rating to a "hold" rating in a report on Saturday. Finally, Morgan Stanley boosted their target price on Phillips 66 from $122.00 to $128.00 and gave the stock an "equal weight" rating in a report on Wednesday, July 16th. Ten investment analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company's stock. According to data from MarketBeat, Phillips 66 currently has a consensus rating of "Hold" and an average price target of $135.20.

Insider Activity at Phillips 66

In related news, EVP Brian Mandell sold 9,800 shares of the company's stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $125.00, for a total transaction of $1,225,000.00. Following the completion of the sale, the executive vice president owned 56,838 shares in the company, valued at approximately $7,104,750. This represents a 14.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Vanessa Allen Sutherland sold 4,393 shares of the company's stock in a transaction on Tuesday, July 8th. The shares were sold at an average price of $130.00, for a total value of $571,090.00. Following the sale, the executive vice president owned 43,373 shares of the company's stock, valued at approximately $5,638,490. This trade represents a 9.20% decrease in their position. The disclosure for this sale can be found here. 0.22% of the stock is owned by company insiders.

Institutional Trading of Phillips 66

A hedge fund recently raised its stake in Phillips 66 stock. Brighton Jones LLC raised its stake in shares of Phillips 66 (NYSE:PSX - Free Report) by 238.5% in the 4th quarter, according to its most recent disclosure with the SEC. The firm owned 10,239 shares of the oil and gas company's stock after purchasing an additional 7,214 shares during the period. Brighton Jones LLC's holdings in Phillips 66 were worth $1,166,000 as of its most recent SEC filing. Institutional investors and hedge funds own 76.93% of the company's stock.

About Phillips 66

Phillips 66 operates as an energy manufacturing and logistics company in the United States, the United Kingdom, Germany, and internationally. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment transports crude oil and other feedstocks; delivers refined petroleum products to market; provides terminaling and storage services for crude oil and refined petroleum products; transports, stores, fractionates, exports, and markets natural gas liquids; provides other fee-based processing services; and gathers, processes, transports, and markets natural gas.

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