Phillips 66 (NYSE:PSX) Reaches New 52-Week High - Should You Buy?

Key Points

• Phillips 66 reached a new 52-week high, trading as high as $265.85 and rising 3.5%, with a market capitalization of approximately $106.1 billion.
• Analysts maintain a “Moderate Buy” consensus, though the average price target of $231.76 is below the stock’s current price; recent targets range from $207 to $300.
• The company reported quarterly EPS of $9.41, beating expectations of $7.50, and supports shareholders with a $1.27 quarterly dividend and a newly authorized $10 billion share-repurchase program.

Phillips 66 (NYSE:PSX - Get Free Report)'s share price reached a new 52-week high during trading on Tuesday . The stock traded as high as $265.85 and last traded at $265.3890, with a volume of 1069079 shares changing hands. The stock had previously closed at $257.06.

Wall Street Analyst Weigh In

Several research firms have issued reports on PSX. Morgan Stanley upped their target price on shares of Phillips 66 from $196.00 to $284.00 and gave the company an "overweight" rating in a research note on Monday. UBS Group increased their price objective on shares of Phillips 66 from $235.00 to $300.00 and gave the company a "buy" rating in a research report on Tuesday, September 8th. The Goldman Sachs Group raised their target price on shares of Phillips 66 from $207.00 to $235.00 and gave the stock a "neutral" rating in a report on Wednesday, July 22nd. TD Cowen raised their price target on Phillips 66 from $240.00 to $255.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Finally, Jefferies Financial Group lifted their price objective on Phillips 66 from $191.00 to $207.00 and gave the stock a "hold" rating in a report on Thursday, July 9th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Phillips 66 has an average rating of "Moderate Buy" and an average price target of $231.76.

Phillips 66 Stock Up 3.5%

The company has a fifty day simple moving average of $224.45 and a 200-day simple moving average of $190.40. 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 firm has a market cap of $106.13 billion, a P/E ratio of 15.16 and a beta of 0.71.

Phillips 66 (NYSE:PSX - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The oil and gas company reported $9.41 EPS for the quarter, topping the consensus estimate of $7.50 by $1.91. The firm had revenue of $52.04 billion for the quarter, compared to the consensus estimate of $43.60 billion. Phillips 66 had a return on equity of 19.93% and a net margin of 4.54%.During the same quarter last year, the company earned $2.38 earnings per share. On average, equities analysts anticipate that Phillips 66 will post 24.47 earnings per share for the current year.

Phillips 66 Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Tuesday, August 18th were issued a dividend of $1.27 per share. The ex-dividend date of this dividend was Tuesday, August 18th. This represents a $5.08 annualized dividend and a yield of 1.9%. Phillips 66's payout ratio is currently 28.95%.

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

Insider Activity

In related news, CFO Kevin J. Mitchell sold 11,021 shares of the company's stock in a transaction on Thursday, July 9th. The shares were sold at an average price of $190.03, for a total value of $2,094,320.63. Following the completion of the transaction, the chief financial officer owned 97,376 shares of the company's stock, valued at approximately $18,504,361.28. This represents a 10.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Richard G. Harbison sold 52,100 shares of the stock in a transaction on Wednesday, August 12th. The stock was 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 of the company's stock, valued at $8,747,673.44. The trade was a 57.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 100,507 shares of company stock valued at $21,770,810. Company insiders own 0.40% of the company's stock.

Institutional Trading of Phillips 66

Hedge funds and other institutional investors have recently bought and sold shares of the stock. NFSG Corp grew its stake in shares of Phillips 66 by 105.6% during the 1st quarter. NFSG Corp now owns 146 shares of the oil and gas company's stock worth $27,000 after purchasing an additional 75 shares during the period. Axiom Investment Management LLC purchased a new position in Phillips 66 in the first quarter valued at about $27,000. Compass Financial Management LLC acquired a new position in Phillips 66 during the second quarter worth $28,000. Kelleher Financial Advisors acquired a new stake in Phillips 66 in the second quarter valued at $29,000. Finally, J.Safra Asset Management Corp purchased a new position in shares of Phillips 66 in the second quarter valued at $30,000. Hedge funds and other institutional investors own 76.93% of the company's stock.

Phillips 66 Company Profile

Phillips 66 NYSE: PSX is an energy company that operates across the midstream, chemicals, refining and marketing sectors. Headquartered in Houston, Texas, the company was established in 2012 when ConocoPhillips separated its downstream businesses into an independent company.

The company's midstream operations include transportation, processing, storage and other infrastructure for crude oil, natural gas and natural gas liquids. Phillips 66 also owns and operates refineries that process crude oil into transportation fuels, lubricants, specialty products and other refined petroleum products.

Phillips 66 markets gasoline, diesel and other fuels under the Phillips 66, Conoco and 76 brands, primarily in the United States.

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