Sunoco LP (NYSE:SUN) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Analysts give Sunoco a "Moderate Buy" consensus from eight analysts with an average 12‑month target of $67.83, and several firms have recently raised price targets (JPMorgan to $73, Wells Fargo to $71, Raymond James to $70).
• Sunoco missed quarterly expectations with EPS of $0.09 (vs. $1.64 est.) and revenue of $8.6B (vs. $9.65B), though revenue was up 63.2% year‑over‑year and analysts forecast full‑year EPS of 7.83.
• The company raised its quarterly dividend to $0.9899 (annualized $3.96) for an approximate 6.0% yield, but the dividend payout ratio is very high at 174.45%, raising sustainability concerns.

Sunoco LP (NYSE:SUN - Get Free Report) has been assigned an average rating of "Moderate Buy" from the eight analysts that are covering the stock, Marketbeat.com reports. Two equities research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating on the company. The average 12-month target price among analysts that have updated their coverage on the stock in the last year is $67.8333.

SUN has been the topic of a number of recent analyst reports. Stifel Nicolaus boosted their price objective on Sunoco from $61.00 to $64.00 and gave the company a "buy" rating in a research note on Wednesday, February 18th. Raymond James Financial raised Sunoco from an "outperform" rating to a "strong-buy" rating and set a $70.00 price target on the stock in a research note on Monday, January 5th. Wells Fargo & Company upped their price target on Sunoco from $67.00 to $71.00 and gave the stock an "overweight" rating in a research note on Friday, March 13th. JPMorgan Chase & Co. upped their price target on Sunoco from $66.00 to $73.00 and gave the stock an "overweight" rating in a research note on Tuesday, March 24th. Finally, Barclays set a $63.00 price target on Sunoco in a research note on Friday, February 20th.

Sunoco Stock Down 0.6%

Shares of NYSE:SUN opened at $65.81 on Friday. The company has a market capitalization of $13.48 billion, a price-to-earnings ratio of 28.99 and a beta of 0.48. The company has a debt-to-equity ratio of 2.06, a current ratio of 1.38 and a quick ratio of 0.78. The business's 50-day moving average is $64.28 and its 200-day moving average is $57.88. Sunoco has a 1 year low of $47.98 and a 1 year high of $67.82.

Sunoco (NYSE:SUN - Get Free Report) last announced its quarterly earnings data 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 during the quarter, compared to analyst estimates of $9.65 billion. Sunoco had a net margin of 2.01% and a return on equity of 10.76%. The firm's revenue for the quarter was up 63.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.75 earnings per share. Equities research analysts predict that Sunoco will post 7.83 earnings per share for the current year.

Sunoco Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, May 20th. Investors of record on Friday, May 8th will be paid a dividend of $0.9899 per share. This is an increase from Sunoco's previous quarterly dividend of $0.93. The ex-dividend date of this dividend is Friday, May 8th. This represents a $3.96 dividend on an annualized basis and a yield of 6.0%. Sunoco's dividend payout ratio (DPR) is currently 174.45%.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Diversified Trust Co raised its stake in Sunoco by 3.0% during the 1st quarter. Diversified Trust Co now owns 5,827 shares of the oil and gas company's stock worth $379,000 after buying an additional 168 shares during the period. Kingsview Wealth Management LLC raised its stake in Sunoco by 2.2% during the 4th quarter. Kingsview Wealth Management LLC now owns 9,720 shares of the oil and gas company's stock worth $509,000 after buying an additional 205 shares during the period. Quadrant Private Wealth Management LLC raised its stake in Sunoco by 5.2% during the 3rd quarter. Quadrant Private Wealth Management LLC now owns 4,249 shares of the oil and gas company's stock worth $212,000 after buying an additional 209 shares during the period. IHT Wealth Management LLC raised its stake in Sunoco by 2.1% during the 2nd quarter. IHT Wealth Management LLC now owns 10,302 shares of the oil and gas company's stock worth $552,000 after buying an additional 212 shares during the period. Finally, Uhlmann Price Securities LLC raised its stake in Sunoco by 2.8% during the 3rd quarter. Uhlmann Price Securities LLC now owns 9,036 shares of the oil and gas company's stock worth $452,000 after buying an additional 250 shares during the period. 24.29% of the stock is owned by institutional investors and hedge funds.

About Sunoco

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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