Phillips 66 (NYSE:PSX) Sees Significant Drop in Short Interest

Key Points

• Short interest fell 13.4% in March to 7,123,173 shares, equal to about 1.8% of the stock and a short-interest ratio of 1.8 days.
• PSX traded down roughly 5.0% to $155.22 intraday after reporting quarterly EPS of $2.47 (beating estimates) but a revenue shortfall; insiders have been selling recently and analysts are split, with a consensus "Hold" price target of $180.72.
• Phillips 66 raised its quarterly dividend to $1.27 ($5.08 annualized), implying a yield of about 3.3% and a payout ratio near 47%.

Phillips 66 (NYSE:PSX - Get Free Report) was the recipient of a large decline in short interest during the month of March. As of March 31st, there was short interest totaling 7,123,173 shares, a decline of 13.4% from the March 15th total of 8,223,644 shares. Based on an average daily trading volume, of 3,900,452 shares, the short-interest ratio is currently 1.8 days. Approximately 1.8% of the shares of the stock are short sold.

Phillips 66 Trading Down 5.0%

PSX stock traded down $8.11 during mid-day trading on Friday, reaching $155.22. 1,385,695 shares of the stock traded hands, compared to its average volume of 3,062,723. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.91 and a current ratio of 1.30. Phillips 66 has a one year low of $95.70 and a one year high of $190.61. The stock has a market capitalization of $62.20 billion, a PE ratio of 14.36, a PEG ratio of 0.28 and a beta of 0.76. The business has a 50-day moving average price of $166.57 and a two-hundred day moving average price of $146.88.

Phillips 66 (NYSE:PSX - Get Free Report) last posted its quarterly earnings data on Wednesday, February 4th. The oil and gas company reported $2.47 earnings per share for the quarter, beating analysts' consensus estimates of $2.15 by $0.32. Phillips 66 had a net margin of 3.22% and a return on equity of 9.13%. The business had revenue of $32.16 billion for the quarter, compared to analysts' expectations of $33.81 billion. During the same quarter in the previous year, the business posted ($0.15) earnings per share. Equities research analysts expect that Phillips 66 will post 6.8 EPS for the current year.

Phillips 66 Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, March 4th. Stockholders of record on Monday, February 23rd were issued a $1.27 dividend. The ex-dividend date was Monday, February 23rd. This is a boost from Phillips 66's previous quarterly dividend of $1.20. This represents a $5.08 dividend on an annualized basis and a dividend yield of 3.3%. Phillips 66's dividend payout ratio (DPR) is currently 46.95%.

Insider Activity

In related news, EVP Don Baldridge sold 7,500 shares of the stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $160.00, for a total value of $1,200,000.00. Following the completion of the transaction, the executive vice president owned 38,488 shares of the company's stock, valued at approximately $6,158,080. This trade represents a 16.31% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Lisa Ann Davis sold 3,800 shares of Phillips 66 stock in a transaction dated 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 transaction, the director owned 8,701 shares of the company's stock, valued at approximately $1,517,193.37. This represents a 30.40% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 95,923 shares of company stock worth $16,399,619. 0.40% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Board of the Pension Protection Fund bought a new position in shares of Phillips 66 in the fourth quarter worth about $26,000. Accordant Advisory Group Inc grew its holdings in shares of Phillips 66 by 900.0% in the fourth quarter. Accordant Advisory Group Inc now owns 200 shares of the oil and gas company's stock worth $26,000 after purchasing an additional 180 shares during the last quarter. Eagle Bay Advisors LLC bought a new position in shares of Phillips 66 in the fourth quarter worth about $27,000. SWAN Capital LLC grew its holdings in shares of Phillips 66 by 1,055.6% in the fourth quarter. SWAN Capital LLC now owns 208 shares of the oil and gas company's stock worth $27,000 after purchasing an additional 190 shares during the last quarter. Finally, Stephens Consulting LLC grew its holdings in shares of Phillips 66 by 67.7% in the fourth quarter. Stephens Consulting LLC now owns 223 shares of the oil and gas company's stock worth $29,000 after purchasing an additional 90 shares during the last quarter. 76.93% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

PSX has been the subject of several recent research reports. Raymond James Financial lifted their price target on Phillips 66 from $175.00 to $205.00 and gave the stock an "outperform" rating in a research report on Wednesday, March 25th. Jefferies Financial Group lowered Phillips 66 from a "strong-buy" rating to a "hold" rating in a research report on Monday. Wells Fargo & Company boosted their price objective on shares of Phillips 66 from $163.00 to $201.00 and gave the company an "overweight" rating in a research report on Tuesday, March 31st. Morgan Stanley boosted their price objective on shares of Phillips 66 from $140.00 to $147.00 and gave the company an "equal weight" rating in a research report on Thursday, February 5th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Phillips 66 from $161.00 to $188.00 and gave the company an "overweight" rating in a research report on Wednesday, April 8th. Eleven research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $180.72.

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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