Phillips 66 (NYSE:PSX) Stock Jumps 3% – What’s Next?

Phillips 66 (NYSE:PSX)’s stock price shot up 3% during trading on Monday. The stock traded as high as $253.48 and last traded at $253.0780. 3,087,855 shares changed hands during mid-day trading, an increase of 8% from the average daily volume of 2,867,380 shares. The stock had previously closed at $245.72.

Wall Street Analysts Forecast Growth

PSX has been the topic of several analyst reports. Raymond James Financial restated an “outperform” rating and issued a $335.00 target price on shares of Phillips 66 in a research report on Monday, October 19th. The Goldman Sachs Group increased their target price on Phillips 66 from $245.00 to $274.00 and gave the company a “neutral” rating in a report on Wednesday, September 30th. TD Cowen boosted their target price on Phillips 66 from $295.00 to $308.00 and gave the company a “buy” rating in a research note on Thursday, October 22nd. Zacks Research upgraded shares of Phillips 66 from a “hold” rating to a “strong-buy” rating in a report on Monday, September 7th. Finally, 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 report on Thursday, October 29th. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat, Phillips 66 presently has a consensus rating of “Moderate Buy” and an average target price of $270.12.

Phillips 66 Stock Performance

The firm has a market capitalization of $100.77 billion, a price-to-earnings ratio of 8.25, a price-to-earnings-growth ratio of 0.14 and a beta of 0.69. The firm’s 50-day moving average price is $268.30 and its two-hundred day moving average price is $202.62. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.04 and a current ratio of 1.34.

Phillips 66 (NYSE:PSX) last issued its earnings results 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 business 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 firm posted $2.52 EPS. Sell-side analysts predict that Phillips 66 will post 33.79 earnings per share for the current year.

Phillips 66 Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Tuesday, November 17th will be issued a dividend of $1.33 per share. The ex-dividend date of this dividend is Tuesday, November 17th. This is a positive change from Phillips 66’s previous quarterly dividend of $1.27. This represents a $5.32 annualized dividend and a dividend yield of 2.1%. Phillips 66’s dividend payout ratio (DPR) is 16.22%.

Phillips 66 announced that its board has authorized a stock buyback program on Friday, July 31st that permits the company to repurchase $10 billion in outstanding shares. This buyback authorization permits the oil and gas company to buy up to 11.8% of its shares through open market purchases. Share buyback programs are often an indication that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In other Phillips 66 news, EVP Brian Mandell sold 23,400 shares of the business’s stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $265.06, for a total value of $6,202,404.00. Following the transaction, the executive vice president owned 61,595 shares of the company’s stock, valued at approximately $16,326,370.70. The trade was a 27.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Phillips 66

A number of institutional investors have recently modified their holdings of the stock. Covestor Ltd boosted its holdings in Phillips 66 by 13.8% in the third quarter. Covestor Ltd now owns 363 shares of the oil and gas company’s stock valued at $93,000 after acquiring an additional 44 shares during the last quarter. Pointe Capital Management LLC boosted its position in shares of Phillips 66 by 4.3% during the second quarter. Pointe Capital Management LLC now owns 1,261 shares of the oil and gas company’s stock worth $213,000 after purchasing an additional 52 shares in the last quarter. Community Financial Services Group LLC boosted its position in shares of Phillips 66 by 9.2% during the third quarter. Community Financial Services Group LLC now owns 615 shares of the oil and gas company’s stock worth $163,000 after purchasing an additional 52 shares in the last quarter. AMI Investment Management Inc. grew its holdings in shares of Phillips 66 by 3.1% in the 3rd quarter. AMI Investment Management Inc. now owns 1,752 shares of the oil and gas company’s stock valued at $447,000 after buying an additional 53 shares during the period. Finally, Key Client Fiduciary Advisors LLC grew its holdings in shares of Phillips 66 by 3.5% in the 2nd quarter. Key Client Fiduciary Advisors LLC now owns 1,624 shares of the oil and gas company’s stock valued at $275,000 after buying an additional 55 shares during the period. 76.93% of the stock is owned by institutional investors.

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.