Sunoco LP (NYSE:SUN) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analyst consensus: Sunoco has an average rating of "Moderate Buy" from eight analysts (1 sell, 1 hold, 5 buy, 1 strong buy) with a 12‑month average target of $67.83.
• Earnings miss: Sunoco reported Q (Feb 17) EPS of $0.09 vs. $1.64 expected and revenue of $8.60B vs. $9.65B expected, though revenue was up 63.2% year‑over‑year and analysts forecast 10.65 EPS for the current year.
• Dividend hike and yield: The quarterly dividend was raised to $0.9317 ($3.73 annualized) for a 5.7% yield, but the payout ratio is a high 163.88%.

Shares of Sunoco LP (NYSE:SUN - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the eight research firms that are covering the stock, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, one has given a hold recommendation, five have given a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month target price among brokers that have covered the stock in the last year is $67.8333.

Several equities research analysts have issued reports on the stock. Zacks Research downgraded shares of Sunoco from a "hold" rating to a "strong sell" rating in a research note on Tuesday, March 3rd. Wells Fargo & Company lifted their target price on shares of Sunoco from $67.00 to $71.00 and gave the company an "overweight" rating in a report on Friday, March 13th. JPMorgan Chase & Co. upped their price target on shares of Sunoco from $66.00 to $73.00 and gave the stock an "overweight" rating in a research report on Tuesday, March 24th. Wall Street Zen downgraded Sunoco from a "buy" rating to a "hold" rating in a report on Saturday, February 14th. Finally, Raymond James Financial raised Sunoco from an "outperform" rating to a "strong-buy" rating and set a $70.00 price objective on the stock in a research report on Monday, January 5th.

Sunoco Stock Performance

NYSE SUN opened at $65.11 on Wednesday. The company has a debt-to-equity ratio of 2.06, a current ratio of 1.38 and a quick ratio of 0.78. Sunoco has a 1-year low of $47.98 and a 1-year high of $67.82. The firm has a market capitalization of $13.34 billion, a P/E ratio of 28.68 and a beta of 0.49. The business's 50-day simple moving average is $61.83 and its 200-day simple moving average is $56.03.

Sunoco (NYSE:SUN - Get Free Report) last posted its earnings results on Tuesday, February 17th. The oil and gas company reported $0.09 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.64 by ($1.55). The business had revenue of $8.60 billion for the quarter, compared to analyst estimates of $9.65 billion. Sunoco had a return on equity of 10.76% and a net margin of 2.01%.The firm's revenue for the quarter was up 63.2% compared to the same quarter last year. During the same period last year, the company posted $0.75 EPS. Equities analysts predict that Sunoco will post 10.65 EPS for the current year.

Sunoco Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, February 19th. Investors of record on Friday, February 6th were issued a dividend of $0.9317 per share. This represents a $3.73 annualized dividend and a dividend yield of 5.7%. The ex-dividend date was Friday, February 6th. This is an increase from Sunoco's previous quarterly dividend of $0.92. Sunoco's dividend payout ratio (DPR) is 163.88%.

Hedge Funds Weigh In On Sunoco

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Rockefeller Capital Management L.P. lifted its position in shares of Sunoco by 36.1% during the fourth quarter. Rockefeller Capital Management L.P. now owns 25,356 shares of the oil and gas company's stock worth $1,329,000 after purchasing an additional 6,722 shares in the last quarter. World Investment Advisors increased its stake in Sunoco by 93.7% during the 4th quarter. World Investment Advisors now owns 8,563 shares of the oil and gas company's stock worth $449,000 after buying an additional 4,143 shares during the period. MidFirst Bank purchased a new stake in Sunoco during the 4th quarter worth $1,599,000. Corient Private Wealth LLC lifted its holdings in Sunoco by 366.8% in the 4th quarter. Corient Private Wealth LLC now owns 70,040 shares of the oil and gas company's stock worth $3,671,000 after buying an additional 55,035 shares in the last quarter. Finally, EP Wealth Advisors LLC acquired a new position in Sunoco in the 4th quarter worth $834,000. Hedge funds and other institutional investors own 24.29% of the company's stock.

Sunoco Company Profile

Sunoco LP NYSE: SUN is an independent master limited partnership that specializes in the distribution and marketing of transportation fuels and related products. The company operates through two primary segments: wholesale fuel distribution and retail marketing. In wholesale distribution, Sunoco supplies branded fuels to distributors, commercial customers and resellers across the United States. Its retail marketing arm operates a network of company‐owned and franchised Sunoco branded service stations and convenience stores, providing gasoline, diesel, ethanol blends and lubricants to consumers.

Sunoco's product portfolio extends beyond traditional fuels to include biofuels, specialty chemicals and on‐road diesel treated to meet ultra‐low sulfur requirements.

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