Phillips 66 (NYSE:PSX) Shares Up 3% - Still a Buy?

Key Points

• Phillips 66 shares rose 3% to about $253.08 in mid-day trading, with volume 8% above its daily average.
• The company reported quarterly earnings of $14.08 per share, beating estimates of $11.73, and revenue of $50.54 billion versus expectations of $44.91 billion.
• Analysts’ consensus rating is Moderate Buy, with an average price target of $270.12. Phillips 66 also raised its quarterly dividend to $1.33 per share.

Shares of Phillips 66 (NYSE:PSX - Get Free Report) were up 3% during mid-day trading on Monday. The stock traded as high as $253.48 and last traded at $253.0780. Approximately 3,087,855 shares traded hands during mid-day trading, an increase of 8% from the average daily volume of 2,867,380 shares. The stock had previously closed at $245.72.

Analysts Set New Price Targets

Several brokerages have commented on PSX. Jefferies Financial Group reissued a "hold" rating and set a $276.00 price target on shares of Phillips 66 in a research report on Sunday, October 11th. The Goldman Sachs Group raised their price objective on Phillips 66 from $245.00 to $274.00 and gave the company a "neutral" rating in a report on Wednesday, September 30th. Freedom Broker raised Phillips 66 from a "sell" rating to a "hold" rating and lifted their target price for the company from $173.00 to $258.00 in a research report on Friday, October 30th. Wells Fargo & Company upped their target price on Phillips 66 from $345.00 to $346.00 and gave the stock an "overweight" rating in a report on Thursday, October 29th. Finally, Barclays upped their target price on Phillips 66 from $216.00 to $282.00 and gave the stock an "equal weight" rating in a report on Monday, October 12th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $270.12.

Phillips 66 Price Performance

The company has a current ratio of 1.34, a quick ratio of 1.04 and a debt-to-equity ratio of 0.49. The company has a 50 day moving average price of $268.05 and a 200 day moving average price of $201.52. The company has a market capitalization of $98.72 billion, a P/E ratio of 8.08, a P/E/G ratio of 0.13 and a beta of 0.69.

Phillips 66 (NYSE:PSX - Get Free Report) last posted its quarterly earnings results on Wednesday, October 28th. The oil and gas company reported $14.08 earnings per share for the quarter, beating analysts' consensus estimates of $11.73 by $2.35. Phillips 66 had a return on equity of 33.12% and a net margin of 7.27%. The business had revenue of $50.54 billion for the quarter, compared to analysts' expectations of $44.91 billion. During the same quarter in the prior year, the business earned $2.52 EPS. On average, equities analysts predict that Phillips 66 will post 33.63 EPS for the current fiscal year.

Phillips 66 Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Tuesday, November 17th will be issued a $1.33 dividend. This is an increase from Phillips 66's previous quarterly dividend of $1.27. This represents a $5.32 annualized dividend and a dividend yield of 2.1%. The ex-dividend date is Tuesday, November 17th. Phillips 66's dividend payout ratio is presently 16.99%.

Phillips 66 declared that its Board of Directors has authorized a stock buyback plan on Friday, July 31st that authorizes the company to buy back $10 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. Share repurchase plans are usually a sign that the company's management believes its shares are undervalued.

Insider Activity

In related news, EVP Brian Mandell sold 30,000 shares of Phillips 66 stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $215.00, for a total transaction of $6,450,000.00. Following the completion of the sale, the executive vice president owned 61,595 shares of the company's stock, valued at approximately $13,242,925. The trade was a 32.75% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Richard G. Harbison sold 52,100 shares of the company's stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $223.76, for a total transaction of $11,657,896.00. Following the completion of the transaction, the executive vice president owned 39,094 shares in the company, valued at approximately $8,747,673.44. This trade represents a 57.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 105,500 shares of company stock worth $24,310,300 over the last three months. Insiders own 0.40% of the company's stock.

Institutional Investors Weigh In On Phillips 66

Hedge funds have recently bought and sold shares of the stock. Allspring Global Investments Holdings LLC grew its position in Phillips 66 by 24.4% during the third quarter. Allspring Global Investments Holdings LLC now owns 292,167 shares of the oil and gas company's stock worth $77,199,000 after buying an additional 57,262 shares in the last quarter. Leelyn Smith LLC purchased a new stake in shares of Phillips 66 in the 3rd quarter valued at about $211,000. Parallel Advisors LLC raised its holdings in shares of Phillips 66 by 4.9% in the 3rd quarter. Parallel Advisors LLC now owns 11,986 shares of the oil and gas company's stock valued at $3,060,000 after acquiring an additional 564 shares in the last quarter. International Assets Investment Management LLC boosted its position in shares of Phillips 66 by 35.7% during the 3rd quarter. International Assets Investment Management LLC now owns 24,747 shares of the oil and gas company's stock valued at $6,318,000 after acquiring an additional 6,517 shares during the last quarter. Finally, Chicago Partners Investment Group LLC boosted its position in shares of Phillips 66 by 8.1% during the 3rd quarter. Chicago Partners Investment Group LLC now owns 21,572 shares of the oil and gas company's stock valued at $6,109,000 after acquiring an additional 1,622 shares during the last quarter. 76.93% of the stock is currently owned by institutional investors and hedge funds.

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.

Phillips 66 was established in 2012 when ConocoPhillips separated its downstream and midstream businesses.

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.