Phillips 66 (NYSE:PSX) Stock Falls 4.6% – Time to Sell?

Shares of Phillips 66 (NYSE:PSX) fell 4.6% during mid-day trading on Wednesday. The company traded as low as $251.13 and last traded at $259.3850. Approximately 5,473,391 shares changed hands during mid-day trading, an increase of 92% from the average session volume of 2,846,241 shares. The stock had previously closed at $271.94.

Analyst Upgrades and Downgrades

Several research firms recently commented on PSX. Wells Fargo & Company boosted their target price on Phillips 66 from $345.00 to $346.00 and gave the stock an “overweight” rating in a research report on Thursday, October 29th. Weiss Ratings raised Phillips 66 from a “buy (b)” rating to a “buy (b+)” rating in a report on Thursday, October 8th. Citigroup lifted their price target on Phillips 66 from $297.00 to $302.00 and gave the company a “neutral” rating in a research report on Wednesday. Mizuho lowered Phillips 66 from an “outperform” rating to a “neutral” rating and boosted their price objective for the stock from $220.00 to $300.00 in a report on Thursday, October 8th. Finally, UBS Group boosted their price objective on Phillips 66 from $235.00 to $300.00 and gave the stock a “buy” rating in a report on Tuesday, September 8th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat, Phillips 66 presently has an average rating of “Moderate Buy” and a consensus target price of $270.12.

Phillips 66 Trading Down 0.6%

The stock has a 50 day moving average of $268.05 and a 200 day moving average of $201.52. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.34 and a quick ratio of 1.04. The firm has a market cap of $95.74 billion, a P/E ratio of 7.84, a PEG ratio of 0.14 and a beta of 0.69.

Phillips 66 (NYSE:PSX) last posted its quarterly earnings data on Wednesday, October 28th. The oil and gas company reported $14.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $11.73 by $2.35. Phillips 66 had a return on equity of 33.12% and a net margin of 7.27%. The firm had revenue of $50.54 billion during the quarter, compared to analysts’ expectations of $44.91 billion. During the same period in the prior year, the business earned $2.52 EPS. As a group, equities research analysts predict that Phillips 66 will post 33.63 EPS for the current year.

Phillips 66 Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Tuesday, November 17th will be issued a $1.33 dividend. This is a boost from Phillips 66’s previous quarterly dividend of $1.27. The ex-dividend date of this dividend is Tuesday, November 17th. This represents a $5.32 dividend on an annualized basis and a yield of 2.2%. Phillips 66’s payout ratio is 16.99%.

Phillips 66 announced that its Board of Directors has initiated a share repurchase program on Friday, July 31st that permits the company to buy back $10 billion in outstanding shares. This repurchase authorization permits the oil and gas company to reacquire up to 11.8% of its stock through open market purchases. Share repurchase programs are typically a sign that the company’s management believes its stock is undervalued.

Insider Transactions at Phillips 66

In other news, EVP Brian Mandell sold 30,000 shares of the stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $215.00, for a total transaction of $6,450,000.00. Following the completion of the sale, the executive vice president directly owned 61,595 shares in the company, valued at approximately $13,242,925. This represents a 32.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Richard G. Harbison sold 52,100 shares of the firm’s stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $223.76, for a total value of $11,657,896.00. Following the completion of the sale, the executive vice president directly owned 39,094 shares in the company, valued at $8,747,673.44. The trade was a 57.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 108,800 shares of company stock worth $25,016,566 in the last 90 days. Corporate insiders own 0.40% of the company’s stock.

Institutional Investors Weigh In On Phillips 66

Institutional investors and hedge funds have recently bought and sold shares of the business. Richardson Financial Services Inc. boosted its holdings in Phillips 66 by 142.5% in the third quarter. Richardson Financial Services Inc. now owns 97 shares of the oil and gas company’s stock worth $25,000 after purchasing an additional 57 shares during the last quarter. NFSG Corp grew its position in Phillips 66 by 105.6% in the 1st quarter. NFSG Corp now owns 146 shares of the oil and gas company’s stock worth $27,000 after purchasing an additional 75 shares during the period. Axiom Investment Management LLC purchased a new stake in Phillips 66 during the 1st quarter valued at $27,000. Compass Financial Management LLC purchased a new stake in Phillips 66 during the 2nd quarter valued at $28,000. Finally, Kelleher Financial Advisors purchased a new stake in Phillips 66 during the 2nd quarter valued at $29,000. Hedge funds and other institutional investors own 76.93% of the company’s stock.

About Phillips 66

Phillips 66 (NYSE: PSX) is an integrated energy company with businesses spanning refining, midstream operations, chemicals, and marketing. It processes crude oil and other feedstocks into transportation fuels and other petroleum products, including gasoline, diesel, and jet fuel.

The company’s midstream operations include the transportation, processing, storage, and marketing of crude oil, natural gas, natural gas liquids, and refined products. Phillips 66 also markets fuels and related products through retail and wholesale channels, including under the Phillips 66, 76, and JET brands.

Phillips 66 was established in 2012 when ConocoPhillips separated its downstream and midstream businesses.