Phillips 66 (NYSE:PSX) Stock Price Up 3% - Here's What Happened

Key Points

• Phillips 66 shares rose 3% to $258.34 in midday trading, with volume about 25% above its average.
• The company beat quarterly estimates, reporting EPS of $14.08 versus $11.73 expected and revenue of $50.54 billion versus $44.91 billion expected. Analysts’ consensus rating was “Moderate Buy,” with an average price target of $270.12.
• Phillips 66 raised its quarterly dividend from $1.27 to $1.33 per share and has authorization to repurchase up to $10 billion of stock.

Phillips 66 (NYSE:PSX - Get Free Report)'s stock price traded up 3% during mid-day trading on Wednesday. The company traded as high as $258.78 and last traded at $258.34. Approximately 3,602,570 shares were traded during mid-day trading, an increase of 25% from the average daily volume of 2,870,673 shares. The stock had previously closed at $250.70.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the company. Raymond James Financial reissued an "outperform" rating and set a $335.00 price target on shares of Phillips 66 in a research report on Monday, October 19th. BMO Capital Markets increased their price objective on shares of Phillips 66 from $260.00 to $310.00 and gave the company an "outperform" rating in a research report on Thursday, September 17th. Weiss Ratings raised Phillips 66 from a "buy (b)" rating to a "buy (b+)" rating in a report on Thursday, October 8th. Jefferies Financial Group reissued a "hold" rating and issued a $276.00 price objective on shares of Phillips 66 in a report on Sunday, October 11th. Finally, Morgan Stanley increased their target price on Phillips 66 from $284.00 to $290.00 and gave the stock an "overweight" rating in a report on Monday, November 2nd. Two research 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. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $270.12.

Phillips 66 Stock Up 3.0%

The stock has a 50 day moving average price of $268.30 and a 200 day moving average price of $202.62. The company has a quick ratio of 1.04, a current ratio of 1.34 and a debt-to-equity ratio of 0.49. The stock has a market capitalization of $100.77 billion, a price-to-earnings ratio of 8.25, a price-to-earnings-growth ratio of 0.14 and a beta of 0.69.

Phillips 66 (NYSE:PSX - Get Free Report) last posted its earnings results on Wednesday, October 28th. The oil and gas company reported $14.08 earnings per share 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 firm had revenue of $50.54 billion for the quarter, compared to analyst estimates of $44.91 billion. During the same period in the previous year, the firm posted $2.52 EPS. As a group, analysts forecast that Phillips 66 will post 33.79 EPS for the current year.

Phillips 66 Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Tuesday, November 17th will be issued a $1.33 dividend. The ex-dividend date is Tuesday, November 17th. This is a boost from Phillips 66's previous quarterly dividend of $1.27. This represents a $5.32 annualized dividend and a yield of 2.1%. Phillips 66's dividend payout ratio (DPR) is currently 16.22%.

Phillips 66 announced that its board has authorized a share repurchase plan on Friday, July 31st that permits the company to repurchase $10 billion in outstanding shares. This buyback authorization permits the oil and gas company to repurchase up to 11.8% of its stock through open market purchases. Share buyback plans are generally an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling at Phillips 66

In related news, EVP Brian Mandell sold 23,400 shares of Phillips 66 stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $265.06, for a total transaction of $6,202,404.00. Following the completion of the transaction, the executive vice president owned 61,595 shares of the company's stock, valued at $16,326,370.70. This trade represents a 27.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Phillips 66

Institutional investors have recently added to or reduced their stakes in the business. Proficio Capital Partners LLC acquired a new stake in Phillips 66 in the 2nd quarter valued at $384,000. Perpetual Ltd lifted its holdings in Phillips 66 by 71.4% during the third quarter. Perpetual Ltd now owns 9,947 shares of the oil and gas company's stock worth $2,540,000 after acquiring an additional 4,142 shares during the period. BlackRock Inc. purchased a new position in shares of Phillips 66 in the 2nd quarter worth about $5,766,779,000. Fifth Third Bancorp grew its position in shares of Phillips 66 by 543.7% during the 1st quarter. Fifth Third Bancorp now owns 128,156 shares of the oil and gas company's stock valued at $23,348,000 after acquiring an additional 108,248 shares during the period. Finally, West Family Investments Inc. purchased a new stake in Phillips 66 in the second quarter worth $724,000. 76.93% of the stock is 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.

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