Sunoco (NYSE:SUN) Shares Break Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Sunoco shares rose above their 200-day moving average, reaching $74.00 before closing at $73.26. The stock’s 200-day average was $70.73, while its 50-day average stood at $75.34.
• Analysts remain broadly bullish, with Sunoco receiving an average “Buy” rating and a consensus price target of $79.38; recent targets ranged from $82 to $84. One analyst downgraded the stock to “Hold.”
• Sunoco increased its quarterly dividend to $1.0023, equivalent to an annualized $4.01 payout and a 5.5% yield. However, the company missed quarterly EPS estimates, reporting $0.94 versus the $2.50 consensus, despite revenue rising 164.5% year over year.

Shares of Sunoco LP (NYSE:SUN - Get Free Report) crossed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $70.73 and traded as high as $74.00. Sunoco shares last traded at $73.26, with a volume of 238,099 shares changing hands.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the stock. JPMorgan Chase & Co. increased their target price on shares of Sunoco from $73.00 to $84.00 and gave the stock an "overweight" rating in a research report on Friday, July 24th. Mizuho set a $83.00 price target on shares of Sunoco in a research report on Friday, July 24th. Wall Street Zen downgraded shares of Sunoco from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Wells Fargo & Company boosted their price objective on shares of Sunoco from $77.00 to $82.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 5th. Finally, Barclays reissued an "overweight" rating and issued a $83.00 price objective on shares of Sunoco in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, Sunoco has an average rating of "Buy" and a consensus price target of $79.38.

Sunoco Trading Up 1.0%

The firm has a market cap of $15.01 billion, a P/E ratio of 16.21 and a beta of 0.43. The firm has a fifty day moving average of $75.34 and a 200-day moving average of $70.73. The company has a debt-to-equity ratio of 1.95, a quick ratio of 0.83 and a current ratio of 1.29.

Sunoco (NYSE:SUN - Get Free Report) last posted its earnings results on Tuesday, August 4th. The oil and gas company reported $0.94 EPS for the quarter, missing the consensus estimate of $2.50 by ($1.56). Sunoco had a return on equity of 18.78% and a net margin of 2.88%. The firm had revenue of $14.26 billion during the quarter, compared to the consensus estimate of $11.05 billion. During the same quarter last year, the company posted $0.33 EPS. Sunoco's revenue for the quarter was up 164.5% on a year-over-year basis. Equities research analysts forecast that Sunoco LP will post 9.57 earnings per share for the current year.

Sunoco Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, August 19th. Stockholders of record on Friday, August 7th were issued a $1.0023 dividend. This represents a $4.01 annualized dividend and a dividend yield of 5.5%. This is a positive change from Sunoco's previous quarterly dividend of $0.9899. The ex-dividend date was Friday, August 7th. Sunoco's payout ratio is currently 88.72%.

Hedge Funds Weigh In On Sunoco

Hedge funds and other institutional investors have recently modified their holdings of the stock. Recurrent Investment Advisors LLC grew its holdings in shares of Sunoco by 51.5% during the first quarter. Recurrent Investment Advisors LLC now owns 1,027,877 shares of the oil and gas company's stock valued at $66,781,000 after buying an additional 349,254 shares in the last quarter. Infrastructure Capital Advisors LLC lifted its position in shares of Sunoco by 34.1% during the 1st quarter. Infrastructure Capital Advisors LLC now owns 972,935 shares of the oil and gas company's stock worth $63,212,000 after purchasing an additional 247,569 shares during the last quarter. Miller Howard Investments Inc. NY boosted its stake in Sunoco by 18.4% during the 1st quarter. Miller Howard Investments Inc. NY now owns 816,233 shares of the oil and gas company's stock valued at $53,031,000 after purchasing an additional 126,964 shares during the period. Annis Gardner Whiting Capital Advisors LLC boosted its stake in Sunoco by 7,000.0% during the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 56,800 shares of the oil and gas company's stock valued at $3,690,000 after purchasing an additional 56,000 shares during the period. Finally, Bank of America Corp DE grew its holdings in Sunoco by 32.0% in the 1st quarter. Bank of America Corp DE now owns 204,609 shares of the oil and gas company's stock valued at $13,293,000 after buying an additional 49,589 shares during the last quarter. Institutional investors and hedge funds own 24.29% of the company's stock.

About Sunoco

Sunoco LP is a publicly traded master limited partnership that distributes and markets motor fuel in the United States. The company supplies gasoline, diesel, and other refined products to independent dealers, commercial customers, distributors, and convenience-store operators. It also supports fuel sales through the Sunoco brand, which is licensed to retail locations operated by third parties.

In addition to fuel distribution, Sunoco owns and operates a network of refined-product terminals and pipelines used to receive, store, transport, and deliver motor fuels and other petroleum products.

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