Phillips 66 (NYSE:PSX) Stock Jumps 3% – Still a Buy?

Phillips 66 (NYSE:PSX)’s stock price was up 3% during trading on Wednesday. The stock traded as high as $258.78 and last traded at $258.34. 3,602,570 shares changed hands during trading, an increase of 25% from the average daily volume of 2,870,673 shares. The stock had previously closed at $250.70.

Analysts Set New Price Targets

PSX has been the subject of a number of recent research reports. Mizuho downgraded Phillips 66 from an “outperform” rating to a “neutral” rating and boosted their target price for the stock from $220.00 to $300.00 in a research report on Thursday, October 8th. Barclays upped their price target on Phillips 66 from $216.00 to $282.00 and gave the company an “equal weight” rating in a report on Monday, October 12th. TD Cowen increased their price objective on shares of Phillips 66 from $295.00 to $308.00 and gave the stock a “buy” rating in a research note on Thursday, October 22nd. Morgan Stanley lifted their price target on shares of Phillips 66 from $284.00 to $290.00 and gave the company an “overweight” rating in a report on Monday, November 2nd. Finally, Citigroup lifted their price target on shares of Phillips 66 from $297.00 to $302.00 and gave the company a “neutral” rating in a report on Wednesday, November 4th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $270.12.

Phillips 66 Price Performance

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 fifty day moving average of $268.30 and a two-hundred day moving average of $202.62. The stock has a market capitalization of $100.77 billion, a P/E ratio of 8.25, a P/E/G ratio of 0.14 and a beta of 0.69.

Phillips 66 (NYSE:PSX) last announced its quarterly earnings results on Wednesday, October 28th. The oil and gas company reported $14.08 earnings per share for the quarter, topping the consensus estimate of $11.73 by $2.35. The firm had revenue of $50.54 billion during the quarter, compared to analysts’ expectations of $44.91 billion. Phillips 66 had a net margin of 7.27% and a return on equity of 33.12%. During the same quarter in the prior year, the company earned $2.52 EPS. On average, analysts predict that Phillips 66 will post 33.79 EPS for the current year.

Phillips 66 Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Tuesday, November 17th will be given a $1.33 dividend. This represents a $5.32 annualized dividend and a dividend yield of 2.1%. 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. Phillips 66’s dividend payout ratio is presently 16.22%.

Phillips 66 announced that its Board of Directors has authorized a share repurchase program on Friday, July 31st that authorizes the company to repurchase $10 billion in shares. This buyback authorization authorizes the oil and gas company to purchase up to 11.8% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Insider Activity at Phillips 66

In other news, EVP Brian Mandell sold 23,400 shares of the firm’s stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $265.06, for a total value of $6,202,404.00. Following the sale, the executive vice president directly owned 61,595 shares in the company, valued at approximately $16,326,370.70. This trade represents a 27.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.40% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new position in shares of Phillips 66 in the 2nd quarter valued at approximately $5,766,779,000. State Street Corp boosted its position in Phillips 66 by 1.1% in the second quarter. State Street Corp now owns 26,044,694 shares of the oil and gas company’s stock valued at $4,402,856,000 after buying an additional 271,841 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of Phillips 66 in the second quarter worth $1,093,206,000. Amundi boosted its holdings in Phillips 66 by 62.0% in the first quarter. Amundi now owns 3,667,451 shares of the oil and gas company’s stock valued at $668,137,000 after purchasing an additional 1,403,493 shares during the last quarter. Finally, Bank of America Corp DE grew its position in Phillips 66 by 1.2% during the 1st quarter. Bank of America Corp DE now owns 2,971,036 shares of the oil and gas company’s stock worth $541,263,000 after purchasing an additional 35,167 shares during the period. 76.93% of the stock is owned by institutional investors and hedge funds.

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.