Phillips 66 (NYSE:PSX) Shares Up 1.7% - Time to Buy?

Key Points

• Phillips 66 shares rose 1.7% to about $263, while trading volume was 4% below its average.
• The company beat quarterly earnings and revenue expectations, reporting EPS of $14.08 versus the $11.73 consensus and revenue of $50.54 billion versus $44.91 billion.
• Analysts’ consensus rating is “Moderate Buy,” with a $270.12 target price. Phillips 66 raised its quarterly dividend to $1.33 per share and has authorized up to $10 billion in share repurchases.

Phillips 66 (NYSE:PSX - Get Free Report)'s stock price was up 1.7% during trading on Thursday. The stock traded as high as $265.81 and last traded at $263.0360. 2,757,510 shares were traded during trading, a decline of 4% from the average daily volume of 2,872,243 shares. The stock had previously closed at $258.68.

Analyst Ratings Changes

Several analysts recently issued reports on PSX shares. Freedom Broker raised Phillips 66 from a "sell" rating to a "hold" rating and raised their target price for the stock from $173.00 to $258.00 in a research note on Friday, October 30th. UBS Group upped their price target on Phillips 66 from $235.00 to $300.00 and gave the company a "buy" rating in a research report on Tuesday, September 8th. Weiss Ratings upgraded Phillips 66 from a "buy (b)" rating to a "buy (b+)" rating in a report on Thursday, October 8th. TD Cowen increased their price objective on Phillips 66 from $295.00 to $308.00 and gave the stock a "buy" rating in a report on Thursday, October 22nd. Finally, The Goldman Sachs Group lifted their price objective on Phillips 66 from $245.00 to $274.00 and gave the stock a "neutral" rating in a research report on Wednesday, September 30th. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $270.12.

Phillips 66 Stock Performance

The company's 50-day moving average price is $268.43 and its 200 day moving average price is $203.20. The stock has a market capitalization of $102.60 billion, a PE ratio of 8.40, a PEG ratio of 0.13 and a beta of 0.69. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.04 and a current ratio of 1.34.

Phillips 66 (NYSE:PSX - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The oil and gas company reported $14.08 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $11.73 by $2.35. Phillips 66 had a net margin of 7.27% and a return on equity of 33.12%. The company had revenue of $50.54 billion during the quarter, compared to the consensus estimate of $44.91 billion. During the same period in the prior year, the firm earned $2.52 earnings per share. On average, equities research analysts expect that Phillips 66 will post 33.79 earnings per share for the current fiscal year.

Phillips 66 Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Tuesday, November 17th will be given a $1.33 dividend. The ex-dividend date of this dividend is Tuesday, November 17th. This represents a $5.32 annualized dividend and a dividend yield of 2.0%. This is an increase from Phillips 66's previous quarterly dividend of $1.27. Phillips 66's dividend payout ratio is currently 16.99%.

Phillips 66 declared that its Board of Directors has initiated a stock repurchase program on Friday, July 31st that permits the company to repurchase $10 billion in outstanding shares. This repurchase authorization permits the oil and gas company to repurchase up to 11.8% of its stock through open market purchases. Share repurchase programs are generally a sign that the company's board believes its stock is undervalued.

Insider Activity at Phillips 66

In related news, EVP Brian Mandell sold 23,400 shares of Phillips 66 stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $265.06, for a total transaction of $6,202,404.00. Following the sale, the executive vice president directly owned 61,595 shares in the company, valued at $16,326,370.70. The trade was a 27.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Phillips 66

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Proficio Capital Partners LLC bought a new stake in shares of Phillips 66 in the 2nd quarter worth approximately $384,000. Perpetual Ltd increased its position in Phillips 66 by 71.4% during the 3rd quarter. Perpetual Ltd now owns 9,947 shares of the oil and gas company's stock valued at $2,540,000 after buying an additional 4,142 shares in the last quarter. BlackRock Inc. bought a new position in Phillips 66 during the 2nd quarter valued at approximately $5,766,779,000. Stack Financial Management Inc bought a new position in Phillips 66 during the 2nd quarter valued at approximately $36,317,000. Finally, West Family Investments Inc. purchased a new position in Phillips 66 during the second quarter valued at $724,000. 76.93% of the stock is owned by hedge funds and other institutional investors.

About Phillips 66

Phillips 66 NYSE: PSX is an integrated energy company with businesses spanning refining, midstream operations, chemicals, and marketing. It processes crude oil and other feedstocks into transportation fuels and other petroleum products, including gasoline, diesel, and jet fuel. The company's midstream operations include the transportation, processing, storage, and marketing of crude oil, natural gas, natural gas liquids, and refined products. Phillips 66 also markets fuels and related products through retail and wholesale channels, including under the Phillips 66, 76, and JET brands.

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