Phillips 66 (NYSE:PSX) to Buyback $10.00 billion in Stock

Key Points

• Phillips 66 authorized a $10 billion share-repurchase program, allowing the company to buy back up to 11.8% of its outstanding shares through open-market purchases.
• Analysts maintain a consensus “Moderate Buy” rating, with a target price of $201.72; shares recently traded at $211.56, near their 52-week high of $216.08.
• The company reported quarterly EPS of $0.49, well above the expected loss of $0.54, and declared a quarterly dividend of $1.27 per share, implying a 2.4% annual yield.

Phillips 66 (NYSE:PSX - Get Free Report) announced that its Board of Directors has authorized a share repurchase program on Friday, July 31st, RTT News reports. The company plans to repurchase $10.00 billion in shares. This repurchase authorization authorizes the oil and gas company to repurchase up to 11.8% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its stock is undervalued.

Analysts Set New Price Targets

A number of research firms recently commented on PSX. Tudor Pickering upgraded shares of Phillips 66 from a "hold" rating to a "strong-buy" rating in a research note on Thursday, April 30th. Zacks Research lowered Phillips 66 from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 6th. Wall Street Zen raised Phillips 66 from a "buy" rating to a "strong-buy" rating in a research note on Sunday, July 26th. Jefferies Financial Group upped their price objective on Phillips 66 from $191.00 to $207.00 and gave the company a "hold" rating in a report on Thursday, July 9th. Finally, Raymond James Financial raised their target price on Phillips 66 from $218.00 to $235.00 and gave the company an "outperform" rating in a research note on Monday, July 13th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $201.72.

Phillips 66 Price Performance

Shares of PSX traded up $0.96 during trading hours on Friday, hitting $211.56. 2,912,520 shares of the company were exchanged, compared to its average volume of 2,381,470. 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 company has a market capitalization of $84.82 billion, a PE ratio of 20.84, a PEG ratio of 0.17 and a beta of 0.69. The firm has a fifty day simple moving average of $185.51 and a 200-day simple moving average of $170.67. Phillips 66 has a one year low of $118.07 and a one year high of $216.08.

Phillips 66 (NYSE:PSX - Get Free Report) last announced its earnings results on Wednesday, April 29th. The oil and gas company reported $0.49 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.54) by $1.03. Phillips 66 had a return on equity of 10.98% and a net margin of 2.99%.The company had revenue of $32.54 billion for the quarter, compared to analyst estimates of $35.86 billion. During the same period in the previous year, the firm earned ($0.90) earnings per share. Phillips 66's revenue for the quarter was up 6.9% compared to the same quarter last year. As a group, sell-side analysts predict that Phillips 66 will post 22.43 earnings per share for the current year.

Phillips 66 Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 18th will be paid 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 yield of 2.4%. Phillips 66's dividend payout ratio is currently 50.05%.

Insiders Place Their Bets

In other news, CFO Kevin J. Mitchell sold 29,400 shares of Phillips 66 stock in a transaction that occurred on Friday, May 8th. The shares were sold at an average price of $170.00, for a total value of $4,998,000.00. Following the transaction, the chief financial officer directly owned 97,376 shares of the company's stock, valued at $16,553,920. This trade represents a 23.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Kevin Omar Meyers acquired 175 shares of the firm's stock in a transaction that occurred on Wednesday, May 6th. The stock was purchased at an average cost of $173.12 per share, with a total value of $30,296.00. Following the purchase, the director directly owned 16,799 shares in the company, valued at approximately $2,908,242.88. This trade represents a 1.05% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders sold a total of 45,107 shares of company stock worth $8,057,584 over the last ninety days. 0.40% of the stock is currently owned by company insiders.

More Phillips 66 News

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

• Positive Sentiment: Phillips 66’s board authorized an additional $10 billion for share repurchases. The expanded authorization gives the refiner substantial flexibility to return capital, potentially reducing the share count, supporting future earnings per share and signaling management’s confidence in the company’s long-term cash generation. Phillips 66 approves $10 billion increase to share repurchase program
• Positive Sentiment: Recent strength across energy stocks and better-than-expected results from refining peer Valero Energy suggest a supportive sector backdrop for Phillips 66 ahead of its own quarterly report. Valero Energy Beats Q2 Earnings and Revenue Estimates
• Neutral Sentiment: Analysts are focusing on Phillips 66’s upcoming earnings, with expectations supported by softer crude costs and potentially stronger refinery margins. The report could provide the next major catalyst for PSX.
• Negative Sentiment: The stock’s premium valuation raises the stakes for the upcoming results. Any disappointment in refining margins, guidance or cash flow could limit the benefit of the buyback announcement. Phillips 66's Q2 Earnings on Deck: Should You Bet on the 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.

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.