Phillips 66 (NYSE:PSX) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts remain moderately bullish: Twenty-two firms assign Phillips 66 an average “Moderate Buy” rating, with a consensus 12-month price target of $206.50.
• Quarterly results exceeded expectations: Phillips 66 reported $9.41 in EPS versus the $7.50 consensus and $52.04 billion in revenue versus $43.60 billion expected, driven by stronger refining margins and operational gains.
• Capital returns are expanding: The company authorized up to $10 billion in share repurchases, equivalent to 11.8% of outstanding shares, and declared a quarterly dividend of $1.27, or a 2.5% annualized yield.

Shares of Phillips 66 (NYSE:PSX - Get Free Report) have been given an average recommendation of "Moderate Buy" by the twenty-two research firms that are currently covering the stock, MarketBeat reports. Nine analysts have rated the stock with a hold recommendation, twelve have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price objective among analysts that have updated their coverage on the stock in the last year is $206.50.

Several research firms have recently issued reports on PSX. TD Cowen increased their target price on Phillips 66 from $240.00 to $255.00 and gave the stock a "buy" rating in a report on Thursday. Jefferies Financial Group upped their price objective on shares of Phillips 66 from $191.00 to $207.00 and gave the stock a "hold" rating in a research report on Thursday, July 9th. Tudor Pickering upgraded shares of Phillips 66 from a "hold" rating to a "strong-buy" rating in a research note on Thursday, April 30th. Raymond James Financial increased their price objective on shares of Phillips 66 from $218.00 to $235.00 and gave the stock an "outperform" rating in a research note on Monday, July 13th. Finally, Wall Street Zen upgraded shares of Phillips 66 from a "buy" rating to a "strong-buy" rating in a research report on Sunday, July 26th.

Phillips 66 Trading Up 1.2%

Shares of NYSE:PSX opened at $205.02 on Friday. The company has a market capitalization of $82.20 billion, a P/E ratio of 11.68, a P/E/G ratio of 0.16 and a beta of 0.68. Phillips 66 has a 1 year low of $118.07 and a 1 year high of $216.08. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.13 and a quick ratio of 0.85. The business's 50 day simple moving average is $187.83 and its 200 day simple moving average is $172.73.

Phillips 66 (NYSE:PSX - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The oil and gas company reported $9.41 earnings per share for the quarter, beating the consensus estimate of $7.50 by $1.91. The firm 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 20.51% and a net margin of 4.54%.During the same period in the previous year, the firm earned $2.38 EPS. On average, research analysts anticipate that Phillips 66 will post 22.43 EPS for the current fiscal year.

Phillips 66 declared that its Board of Directors has initiated a share repurchase plan on Friday, July 31st that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the oil and gas company to repurchase up to 11.8% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Phillips 66 Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Tuesday, August 18th will be paid a $1.27 dividend. This represents a $5.08 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Tuesday, August 18th. Phillips 66's dividend payout ratio (DPR) is 28.95%.

Insider Activity at Phillips 66

In other Phillips 66 news, CFO Kevin J. Mitchell sold 11,021 shares of the company's stock in a transaction on Thursday, July 9th. The stock was sold at an average price of $190.03, for a total transaction of $2,094,320.63. Following the completion of the sale, the chief financial officer directly owned 97,376 shares in the company, valued at $18,504,361.28. This represents a 10.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 firm's stock in a transaction on Tuesday, July 21st. The shares were sold at an average price of $211.05, for a total value 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. Over the last 90 days, insiders have sold 15,707 shares of company stock valued at $3,059,584. Company insiders own 0.40% of the company's stock.

Institutional Trading of Phillips 66

Large investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its stake in shares of Phillips 66 by 0.4% in the 4th quarter. Vanguard Group Inc. now owns 51,930,038 shares of the oil and gas company's stock valued at $6,701,052,000 after purchasing an additional 205,480 shares in the last quarter. State Street Corp increased its position in Phillips 66 by 0.8% during the 4th quarter. State Street Corp now owns 23,589,550 shares of the oil and gas company's stock worth $3,043,996,000 after purchasing an additional 175,616 shares in the last quarter. Geode Capital Management LLC increased its position in Phillips 66 by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 10,413,824 shares of the oil and gas company's stock worth $1,338,596,000 after purchasing an additional 45,340 shares in the last quarter. Bank of New York Mellon Corp bought a new position in Phillips 66 in the 2nd quarter valued at approximately $1,093,206,000. Finally, Norges Bank bought a new position in Phillips 66 in the 4th quarter valued at approximately $640,206,000. 76.93% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Phillips 66

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

• Positive Sentiment: Strong refining performance: More than doubled refining margins, improved execution and tight product supplies drove the earnings surge. Phillips 66 expects refining utilization in the mid-90% range during the third quarter and believes favorable market conditions could persist through 2027. Phillips 66 Profit Jumps as Refining Margins More Than Double
• Positive Sentiment: Broader operational gains: Record midstream volumes, stronger chemicals results and improved marketing performance supplemented the refining gains, reducing reliance on a single business line. PSX Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Capital returns and balance-sheet improvement: Phillips 66 reduced debt by $6.6 billion and expanded its stock-repurchase authorization by $10 billion, potentially supporting per-share value and investor confidence. Phillips 66 Cashes in on Refining Boom
• Positive Sentiment: Higher analyst valuation: TD Cowen maintained a Buy rating and lifted its price target from $240 to $255, citing stronger fundamentals, balance-sheet progress and enhanced capital returns. Aggregate fair value estimates also rose to about $207.53 from $194.11. TD Cowen Raises Phillips 66 Price Target
• Neutral Sentiment: U.S. oil imports from Saudi Arabia fell to zero in July, an event that underscores shifting supply flows and may contribute to regional product tightness, but its direct effect on PSX remains uncertain. U.S. Oil Imports from Saudi Arabia at Zero in July
• Negative Sentiment: Valuation is becoming a concern after the rally: Bank of America reiterated a Hold rating with a $213 target, arguing that strong execution is largely reflected in the shares. Refining margins are also cyclical and could weaken if supply conditions normalize. Phillips 66 Neutral Rating Reiterated

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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