Phillips 66 (NYSE:PSX) Reaches New 12-Month High - What's Next?

Key Points

• Phillips 66 shares reached a new 52-week high of $261, supported by a generally bullish analyst outlook. UBS raised its price target to $300 and rated the stock “buy,” while MarketBeat’s consensus rating is “Moderate Buy” with an average target of $222.76.
• The company reported strong quarterly results, with EPS of $9.41 versus the $7.50 consensus and revenue of $52.04 billion, well above estimates. Analysts expect full-year earnings of approximately $24.07 per share.
• Phillips 66 maintains shareholder-return initiatives, including a $1.27 quarterly dividend and a newly authorized $10 billion share-repurchase program covering up to 11.8% of outstanding shares; institutional investors own 76.93% of the stock.

Phillips 66 (NYSE:PSX - Get Free Report) shares hit a new 52-week high during trading on Tuesday . The stock traded as high as $261.00 and last traded at $260.1370, with a volume of 211365 shares changing hands. The stock had previously closed at $255.09.

Wall Street Analyst Weigh In

PSX has been the subject of several research analyst reports. UBS Group upped their target price on Phillips 66 from $235.00 to $300.00 and gave the stock a "buy" rating in a research note on Tuesday. Weiss Ratings raised shares of Phillips 66 from a "hold (c)" rating to a "buy (b)" rating in a report on Wednesday, August 12th. The Goldman Sachs Group upped their price objective on shares of Phillips 66 from $207.00 to $235.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 22nd. Wall Street Zen raised shares of Phillips 66 from a "buy" rating to a "strong-buy" rating in a report on Sunday, July 26th. Finally, Argus boosted their target price on shares of Phillips 66 from $185.00 to $197.00 and gave the stock a "buy" rating in a research note on Thursday, May 14th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $222.76.

Phillips 66 Price Performance

The company has a quick ratio of 1.00, a current ratio of 1.32 and a debt-to-equity ratio of 0.57. The stock has a market capitalization of $103.32 billion, a PE ratio of 14.77, a PEG ratio of 0.19 and a beta of 0.71. The company has a 50-day moving average of $216.00 and a 200 day moving average of $186.75.

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 analysts' consensus estimates of $7.50 by $1.91. Phillips 66 had a return on equity of 19.93% and a net margin of 4.54%.The company had revenue of $52.04 billion for the quarter, compared to analyst estimates of $43.60 billion. During the same quarter last year, the firm posted $2.38 EPS. Sell-side analysts predict that Phillips 66 will post 24.07 EPS for the current year.

Phillips 66 Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 18th were paid a $1.27 dividend. This represents a $5.08 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend was Tuesday, August 18th. Phillips 66's dividend payout ratio (DPR) is currently 28.95%.

Phillips 66 declared that its board has authorized a share repurchase program on Friday, July 31st that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the oil and gas company to repurchase up to 11.8% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling at Phillips 66

In other Phillips 66 news, EVP Richard Harbison sold 52,100 shares of the stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $223.76, for a total value of $11,657,896.00. Following the completion of the sale, the executive vice president owned 39,094 shares in the company, valued at approximately $8,747,673.44. This represents a 57.13% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Brian Mandell sold 30,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $215.00, for a total transaction of $6,450,000.00. Following the completion of the transaction, the executive vice president directly owned 61,595 shares in the company, valued at $13,242,925. This trade represents a 32.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 100,507 shares of company stock worth $21,770,810 in the last 90 days. 0.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Phillips 66

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Brighton Jones LLC raised its stake in Phillips 66 by 238.5% during the fourth quarter. Brighton Jones LLC now owns 10,239 shares of the oil and gas company's stock worth $1,166,000 after purchasing an additional 7,214 shares during the period. Woodline Partners LP grew its stake in shares of Phillips 66 by 40.7% in the 1st quarter. Woodline Partners LP now owns 34,891 shares of the oil and gas company's stock valued at $4,308,000 after buying an additional 10,089 shares during the period. Sei Investments Co. increased its holdings in shares of Phillips 66 by 28.3% during the 2nd quarter. Sei Investments Co. now owns 157,455 shares of the oil and gas company's stock worth $18,788,000 after buying an additional 34,698 shares during the last quarter. The Manufacturers Life Insurance Company increased its holdings in shares of Phillips 66 by 9.1% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 346,679 shares of the oil and gas company's stock worth $41,359,000 after buying an additional 28,988 shares during the last quarter. Finally, Glenview Trust co raised its position in shares of Phillips 66 by 2.6% during the 2nd quarter. Glenview Trust co now owns 8,949 shares of the oil and gas company's stock valued at $1,068,000 after buying an additional 229 shares during the period. Institutional investors and hedge funds own 76.93% of the company's stock.

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.

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.