Phillips 66 (NYSE:PSX) Cut to "Neutral" at Bank of America

Key Points

• Phillips 66 was downgraded from a "buy" rating to a "neutral" rating by Bank of America, with a new price target of $147.00.
• The company's recent quarterly earnings beat estimates, reporting $2.38 earnings per share compared to the consensus estimate of $1.79.
• Currently, Phillips 66 has a consensus rating of "Moderate Buy" from analysts, with an average price target of $135.60.

Bank of America cut shares of Phillips 66 (NYSE:PSX - Free Report) from a buy rating to a neutral rating in a research note published on Wednesday morning, Marketbeat Ratings reports. The firm currently has $147.00 price objective on the oil and gas company's stock, up from their prior price objective of $144.00.

A number of other equities analysts have also recently commented on the stock. Tudor Pickering cut shares of Phillips 66 from a "strong-buy" rating to a "hold" rating in a research note on Thursday, May 22nd. Citigroup lowered Phillips 66 from a "buy" rating to a "neutral" rating and boosted their target price for the company from $126.00 to $130.00 in a research report on Wednesday, July 16th. Barclays upped their target price on Phillips 66 from $115.00 to $127.00 and gave the company an "equal weight" rating in a research note on Wednesday, July 9th. Scotiabank restated a "sector perform" rating and set a $133.00 price objective on shares of Phillips 66 in a report on Friday, July 11th. Finally, Mizuho increased their target price on Phillips 66 from $132.00 to $138.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 13th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and ten have issued a Hold rating to the company. According to data from MarketBeat, Phillips 66 has a consensus rating of "Moderate Buy" and an average price target of $135.60.

Phillips 66 Trading Down 0.1%

NYSE:PSX traded down $0.14 during midday trading on Wednesday, hitting $131.44. 1,828,526 shares of the company traded hands, compared to its average volume of 1,927,008. The firm has a market capitalization of $53.12 billion, a P/E ratio of 31.60, a P/E/G ratio of 2.05 and a beta of 1.15. The firm's fifty day moving average is $126.26 and its 200-day moving average is $119.50. Phillips 66 has a 12-month low of $91.01 and a 12-month high of $140.60. The company has a current ratio of 1.07, a quick ratio of 0.79 and a debt-to-equity ratio of 0.60.

Phillips 66 (NYSE:PSX - Get Free Report) last posted its quarterly earnings data on Friday, July 25th. The oil and gas company reported $2.38 EPS for the quarter, topping the consensus estimate of $1.79 by $0.59. Phillips 66 had a net margin of 1.27% and a return on equity of 4.87%. The company had revenue of $33.77 billion during the quarter, compared to analyst estimates of $32.11 billion. During the same period in the previous year, the firm earned $2.31 earnings per share. On average, sell-side analysts predict that Phillips 66 will post 6.8 EPS for the current year.

Phillips 66 Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 2nd. Investors of record on Tuesday, August 19th were paid a $1.20 dividend. The ex-dividend date of this dividend was Tuesday, August 19th. This represents a $4.80 dividend on an annualized basis and a yield of 3.7%. Phillips 66's dividend payout ratio is 115.38%.

Insider Buying and Selling

In other Phillips 66 news, Director Michael A. Heim acquired 1,000 shares of the stock in a transaction that occurred on Wednesday, July 30th. The stock was bought at an average cost of $125.97 per share, with a total value of $125,970.00. Following the completion of the purchase, the director directly owned 12,043 shares in the company, valued at $1,517,056.71. The trade was a 9.06% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Gregory Hayes acquired 8,350 shares of the stock in a transaction that occurred on Thursday, August 14th. The stock was acquired at an average cost of $119.90 per share, with a total value of $1,001,165.00. Following the completion of the purchase, the director owned 29,423 shares of the company's stock, valued at $3,527,817.70. This trade represents a 39.62% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders bought 9,850 shares of company stock valued at $1,188,910 over the last quarter. 0.22% of the stock is owned by company insiders.

Institutional Trading of Phillips 66

A number of hedge funds have recently added to or reduced their stakes in the business. Evolution Wealth Management Inc. purchased a new stake in shares of Phillips 66 during the second quarter valued at about $25,000. Wolff Wiese Magana LLC lifted its position in shares of Phillips 66 by 62.1% during the second quarter. Wolff Wiese Magana LLC now owns 214 shares of the oil and gas company's stock valued at $26,000 after buying an additional 82 shares during the last quarter. von Borstel & Associates Inc. purchased a new stake in shares of Phillips 66 during the first quarter valued at about $27,000. Olde Wealth Management LLC purchased a new stake in shares of Phillips 66 during the first quarter valued at about $28,000. Finally, Opal Wealth Advisors LLC purchased a new stake in shares of Phillips 66 during the first quarter valued at about $29,000. 76.93% of the stock is owned by hedge funds and other institutional investors.

Phillips 66 Company Profile

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.