Sunoco (NYSE:SUN) Cut to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Sunoco from “Buy” to “Hold,” although the broader analyst consensus remains “Buy,” with an average price target of $79.00.
• Sunoco shares opened at $70.58, near their 52-week high of $78.11, while trading above both their 50-day and 200-day moving averages.
• The company’s latest quarter showed revenue growth of 164.5% year over year to $14.26 billion, but earnings per share of $0.94 fell well short of the $2.50 analyst estimate.

Sunoco (NYSE:SUN - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

A number of other brokerages have also recently issued reports on SUN. Royal Bank Of Canada upped their target price on shares of Sunoco to $78.00 and gave the company an "outperform" rating in a report on Wednesday, May 13th. Wells Fargo & Company lifted their price target on Sunoco from $77.00 to $82.00 and gave the stock an "overweight" rating in a report on Wednesday. Barclays boosted their price target on Sunoco from $78.00 to $80.00 and gave the stock an "overweight" rating in a research report on Wednesday. Mizuho set a $83.00 price objective on Sunoco in a research note on Friday, July 24th. Finally, Citigroup raised their price objective on Sunoco from $73.00 to $81.00 and gave the company a "buy" rating in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $79.00.

Sunoco Price Performance

Shares of SUN opened at $70.58 on Friday. The company has a current ratio of 1.40, a quick ratio of 0.92 and a debt-to-equity ratio of 2.03. The company's fifty day simple moving average is $69.31 and its 200 day simple moving average is $65.89. Sunoco has a 1-year low of $47.98 and a 1-year high of $78.11. The company has a market cap of $14.46 billion, a price-to-earnings ratio of 15.62 and a beta of 0.41.

Sunoco (NYSE:SUN - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The oil and gas company reported $0.94 EPS for the quarter, missing analysts' consensus estimates of $2.50 by ($1.56). Sunoco had a net margin of 2.88% and a return on equity of 19.62%. The firm had revenue of $14.26 billion during the quarter, compared to analyst estimates of $11.05 billion. During the same quarter in the prior year, the business earned $0.33 EPS. The business's revenue was up 164.5% compared to the same quarter last year. On average, research analysts forecast that Sunoco will post 11.09 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of SUN. Royal Bank of Canada boosted its holdings in Sunoco by 6.4% in the 1st quarter. Royal Bank of Canada now owns 159,128 shares of the oil and gas company's stock valued at $9,239,000 after purchasing an additional 9,592 shares during the period. Brown Advisory Inc. increased its holdings in shares of Sunoco by 10.9% during the second quarter. Brown Advisory Inc. now owns 12,174 shares of the oil and gas company's stock worth $652,000 after purchasing an additional 1,201 shares during the period. NewEdge Advisors LLC raised its position in shares of Sunoco by 226.2% in the second quarter. NewEdge Advisors LLC now owns 7,088 shares of the oil and gas company's stock valued at $380,000 after buying an additional 4,915 shares in the last quarter. Raymond James Financial Inc. raised its position in shares of Sunoco by 5.5% in the second quarter. Raymond James Financial Inc. now owns 365,953 shares of the oil and gas company's stock valued at $19,611,000 after buying an additional 18,990 shares in the last quarter. Finally, Ameriprise Financial Inc. boosted its stake in shares of Sunoco by 8.1% in the second quarter. Ameriprise Financial Inc. now owns 37,488 shares of the oil and gas company's stock valued at $1,996,000 after buying an additional 2,810 shares during the period. 24.29% of the stock is owned by institutional investors.

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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