Sunoco (NYSE:SUN) Hits New 1-Year High - Here's Why

Key Points

• Sunoco shares reached a new 52-week high of $77.32 and have risen above their 50-day and 200-day moving averages. Analysts maintain a consensus “Buy” rating with an average price target of $77.12.
• Sunoco reported quarterly earnings of $2.85 per share, exceeding estimates of $1.71, while revenue rose 106.4% year over year to $10.69 billion.
• The company increased its quarterly dividend to $1.0023 per share, representing an annualized payout of about $4.01 and a 5.2% yield; its payout ratio is 101.28%.

Sunoco LP (NYSE:SUN - Get Free Report) hit a new 52-week high on Wednesday . The company traded as high as $77.32 and last traded at $76.5050, with a volume of 1548 shares changing hands. The stock had previously closed at $76.50.

Analyst Ratings Changes

SUN has been the topic of a number of research reports. Mizuho set a $83.00 target price on shares of Sunoco in a report on Friday. Wells Fargo & Company upped their price target on Sunoco from $71.00 to $77.00 and gave the company an "overweight" rating in a report on Thursday, May 7th. Barclays raised their price objective on Sunoco from $75.00 to $78.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 14th. Citigroup boosted their target price on Sunoco from $65.00 to $73.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Finally, Royal Bank Of Canada increased their price target on Sunoco to $78.00 and gave the company an "outperform" rating in a research report on Wednesday, May 13th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and an average price target of $77.12.

Sunoco Trading Up 0.6%

The company has a quick ratio of 0.92, a current ratio of 1.40 and a debt-to-equity ratio of 2.03. The firm has a market cap of $15.76 billion, a price-to-earnings ratio of 19.73 and a beta of 0.42. The company has a 50-day moving average price of $68.32 and a 200 day moving average price of $64.96.

Sunoco (NYSE:SUN - Get Free Report) last released its 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. The company had revenue of $10.69 billion for the quarter, compared to analysts' expectations of $10.19 billion. Sunoco had a return on equity of 17.52% and a net margin of 3.07%.The business's revenue for the quarter was up 106.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.21 EPS. As a group, research analysts anticipate that Sunoco LP will post 7.73 earnings per share for the current fiscal year.

Sunoco Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Friday, August 7th will be given a dividend of $1.0023 per share. The ex-dividend date of this dividend is Friday, August 7th. This is a boost from Sunoco's previous quarterly dividend of $0.99. This represents a $4.01 dividend on an annualized basis and a yield of 5.2%. Sunoco's payout ratio is presently 101.28%.

Institutional Investors Weigh In On Sunoco

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Diversified Trust Co grew its holdings in shares of Sunoco by 3.0% during 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 in the last quarter. Kingsview Wealth Management LLC boosted its position in Sunoco by 2.2% during the fourth 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 grew its stake in Sunoco by 2.1% in the second 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 in the last quarter. PFG Investments LLC grew its stake in Sunoco by 4.1% in 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 increased its position in Sunoco by 0.7% in the 3rd quarter. Glenmede Investment Management LP now owns 39,088 shares of the oil and gas company's stock worth $1,955,000 after purchasing an additional 288 shares during the last quarter. Hedge funds and other institutional investors own 24.29% of the company's stock.

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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