Sunoco LP (NYSE:SUN) Given Consensus Recommendation of "Buy" by Analysts

Key Points

• Analysts maintain a bullish view of Sunoco: Ten brokerages give the stock a consensus “Buy” rating, with an average 12-month price target of $77.13; several firms recently raised targets to $77–$80.
• Sunoco reported strong quarterly results, earning $2.85 per share versus the $1.71 consensus estimate, while revenue rose 106.4% year over year to $10.69 billion.
• The company increased its quarterly dividend to $1.0023, equivalent to approximately $4.01 annually and a 5.2% yield, though its payout ratio is high at 101.28%.

Shares of Sunoco LP (NYSE:SUN - Get Free Report) have been assigned a consensus rating of "Buy" from the ten brokerages that are presently covering the stock, MarketBeat Ratings reports. One analyst has rated the stock with a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $77.1250.

Several research firms have recently commented on SUN. Wells Fargo & Company raised their target price on shares of Sunoco from $71.00 to $77.00 and gave the stock an "overweight" rating in a research report on Thursday, May 7th. Royal Bank Of Canada boosted their price target on shares of Sunoco to $78.00 and gave the company an "outperform" rating in a research report on Wednesday, May 13th. Barclays increased their price target on shares of Sunoco from $75.00 to $78.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 14th. Weiss Ratings upgraded shares of Sunoco from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, May 21st. Finally, Raymond James Financial reaffirmed a "strong-buy" rating and set a $80.00 price objective on shares of Sunoco in a research report on Wednesday, May 6th.

Sunoco Stock Performance

Shares of SUN stock opened at $76.38 on Tuesday. The stock has a fifty day moving average of $68.78 and a 200 day moving average of $65.51. Sunoco has a 52 week low of $47.98 and a 52 week high of $78.11. The firm has a market capitalization of $15.64 billion, a price-to-earnings ratio of 19.54 and a beta of 0.41. The company has a quick ratio of 0.92, a current ratio of 1.40 and a debt-to-equity ratio of 2.03.

Sunoco (NYSE:SUN - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The oil and gas company reported $2.85 earnings per share for the quarter, beating the consensus estimate of $1.71 by $1.14. Sunoco had a net margin of 3.07% and a return on equity of 17.52%. The business had revenue of $10.69 billion for the quarter, compared to analysts' expectations of $10.19 billion. During the same quarter in the previous year, the business posted $1.21 earnings per share. The firm's revenue for the quarter was up 106.4% compared to the same quarter last year. As a group, research analysts expect that Sunoco will post 8.8 earnings per share for the current year.

Sunoco Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Friday, August 7th will be given a $1.0023 dividend. The ex-dividend date of this dividend is Friday, August 7th. This represents a $4.01 annualized dividend and a dividend yield of 5.2%. This is an increase from Sunoco's previous quarterly dividend of $0.99. Sunoco's dividend payout ratio is currently 101.28%.

Institutional Investors Weigh In On Sunoco

Several hedge funds have recently made changes to their positions in the company. Diversified Trust Co increased its holdings in Sunoco by 3.0% in the 1st quarter. Diversified Trust Co now owns 5,827 shares of the oil and gas company's stock valued at $379,000 after acquiring an additional 168 shares during the last quarter. Kingsview Wealth Management LLC boosted its holdings in shares of 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 valued at $509,000 after purchasing an additional 205 shares during the last quarter. IHT Wealth Management LLC boosted its holdings in shares of 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 valued at $552,000 after purchasing an additional 212 shares during the last quarter. PFG Investments LLC grew its position in shares of Sunoco by 4.1% during the second quarter. PFG Investments LLC now owns 5,951 shares of the oil and gas company's stock valued at $402,000 after purchasing an additional 237 shares in the last quarter. Finally, Glenmede Investment Management LP grew its position in shares of Sunoco by 0.7% during the third quarter. Glenmede Investment Management LP now owns 39,088 shares of the oil and gas company's stock valued at $1,955,000 after purchasing an additional 288 shares in the last quarter. 24.29% of the stock is currently owned by institutional investors.

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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