Phillips 66 (PSX) Rating Increased to Hold at Zacks Investment Research
Phillips 66 (NYSE:PSX) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “Phillips 66’s diversified presence across the U.S. supported by extensive transportation and logistics assets, which provide a steady supply of crude from domestic, Canadian and international sources is a positive. The company has been paying attractrive dividend since its spin-off from ConocoPhillips in 2012. Moreover, we expect the company to go on increasing dividend in the long run . However, Phillips 66 suffers from the carnage that has been generated as a result of volatile oil prices. We believe that the company’s earnings from the refining business will be hampered over time as the gasoline demand in the U.S is likely to decline in the coming days. Moreover, lower production from persistent weak oil prices might also drag the demand of the company's midstream assets. All those points account for our cautious stance on this stock.”
Several other equities analysts have also commented on the company. Vetr upgraded Phillips 66 from a “buy” rating to a “strong-buy” rating and set a $87.26 price target on the stock in a research note on Wednesday, July 6th. Howard Weil lowered Phillips 66 from a “sector outperform” rating to a “sector perform” rating and cut their price target for the company from $90.00 to $89.00 in a research note on Monday, July 11th. Morgan Stanley lowered Phillips 66 from an “overweight” rating to an “equal weight” rating and cut their price target for the company from $105.00 to $90.00 in a research note on Friday, June 17th. Wells Fargo & Co. lowered Phillips 66 from an “outperform” rating to a “market perform” rating in a research note on Friday, July 8th. Finally, Piper Jaffray Cos. raised their price target on Phillips 66 from $68.00 to $74.00 and gave the company a “neutral” rating in a research note on Monday, August 22nd. Fourteen investment analysts have rated the stock with a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company. The stock has an average rating of “Hold” and an average price target of $85.86.
Phillips 66 (NYSE:PSX) opened at 79.28 on Wednesday. The stock has a market cap of $41.45 billion, a price-to-earnings ratio of 13.72 and a beta of 1.38. The firm has a 50-day moving average price of $78.80 and a 200-day moving average price of $80.46. Phillips 66 has a 12 month low of $71.74 and a 12 month high of $94.12.
Phillips 66 (NYSE:PSX) last announced its quarterly earnings results on Friday, July 29th. The company reported $0.94 EPS for the quarter, beating the consensus estimate of $0.93 by $0.01. Phillips 66 had a return on equity of 13.44% and a net margin of 3.51%. During the same quarter last year, the company earned $1.83 EPS. Equities research analysts expect that Phillips 66 will post $3.40 earnings per share for the current fiscal year.
The business also recently declared a quarterly dividend, which was paid on Thursday, September 1st. Investors of record on Thursday, August 18th were given a dividend of $0.63 per share. This represents a $2.52 annualized dividend and a yield of 3.18%. The ex-dividend date of this dividend was Tuesday, August 16th. Phillips 66’s dividend payout ratio is currently 43.83%.
In related news, major shareholder Berkshire Hathaway Inc purchased 290,116 shares of Phillips 66 stock in a transaction that occurred on Monday, August 22nd. The stock was bought at an average cost of $77.04 per share, for a total transaction of $22,350,536.64. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.05% of the company’s stock.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Cribstone Capital Management LLC bought a new position in shares of Phillips 66 during the second quarter valued at $114,000. Harel Insurance Investments & Financial Services Ltd. boosted its stake in Phillips 66 by 2,762.7% in the second quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,460 shares of the company’s stock worth $138,000 after buying an additional 1,409 shares during the period. Farmers National Bank acquired a new stake in Phillips 66 during the second quarter worth approximately $141,000. Delphi Private Advisors LLC boosted its stake in Phillips 66 by 1.0% in the second quarter. Delphi Private Advisors LLC now owns 1,781 shares of the company’s stock worth $141,000 after buying an additional 18 shares during the period. Finally, Bruderman Asset Management LLC boosted its stake in Phillips 66 by 3.1% in the second quarter. Bruderman Asset Management LLC now owns 1,850 shares of the company’s stock worth $147,000 after buying an additional 56 shares during the period. Institutional investors own 69.98% of the company’s stock.
Phillips 66 Company Profile
Phillips 66 is an energy manufacturing and logistics company with midstream, chemicals, refining and marketing, and specialties businesses. The Company operates its business through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment includes its equity investment in DCP Midstream , LLC (DCP Midstream) and its investment in Phillips 66 Partners LP.
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