Phillips 66 (PSX) Upgraded to Buy by Zacks Investment Research
Zacks Investment Research upgraded shares of Phillips 66 (NYSE:PSX) from a hold rating to a buy rating in a research note released on Tuesday morning. The brokerage currently has $105.00 target price on the oil and gas company’s stock.
According to Zacks, “In terms of size, efficiency and strength, Phillips 66 is a leading player in each operational segment – refining, chemicals and midstream. The company is working on fortifying its position by streamlining its asset portfolio and investing extensively. We appreciate Phillips 66’s intention to allocate money to higher margin business units like Midstream and Chemicals instead of extensive refining and marketing operations. The refiner's diversified presence across the U.S. supported by extensive transportation and logistics assets domestic, Canadian and international sources is noteworthy. Moreover, the company’s balanced approach to capital allocation scores high in this highly volatile commodity price environment. Phillips 66 has made significant investments for its business growth and also returned considerable amounts of cash to shareholders.”
A number of other research analysts have also recently weighed in on the stock. Goldman Sachs Group, Inc. (The) upgraded shares of Phillips 66 from a neutral rating to a buy rating and lifted their target price for the company from $88.00 to $109.00 in a research note on Tuesday, October 3rd. Scotiabank upgraded shares of Phillips 66 from a sector perform rating to an outperform rating and lifted their target price for the company from $89.00 to $98.00 in a research note on Saturday, September 30th. Howard Weil upgraded shares of Phillips 66 from a sector perform rating to an outperform rating and lifted their target price for the company from $86.00 to $98.00 in a research note on Thursday, September 28th. Piper Jaffray Companies restated a buy rating and set a $98.00 target price on shares of Phillips 66 in a research note on Tuesday, September 26th. Finally, Jefferies Group LLC restated a hold rating and set a $78.00 target price on shares of Phillips 66 in a research note on Tuesday, September 5th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and seven have issued a buy rating to the company. The company currently has an average rating of Hold and an average target price of $91.27.
Phillips 66 (NYSE:PSX) traded down 0.20% on Tuesday, hitting $93.28. 85,992 shares of the stock traded hands. Phillips 66 has a 52-week low of $75.14 and a 52-week high of $94.69. The company’s 50 day moving average price is $87.80 and its 200-day moving average price is $82.07. The stock has a market cap of $47.71 billion, a price-to-earnings ratio of 27.91 and a beta of 1.19.
Phillips 66 (NYSE:PSX) last issued its quarterly earnings results on Tuesday, August 1st. The oil and gas company reported $1.09 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.02 by $0.07. The business had revenue of $24.58 billion for the quarter, compared to analysts’ expectations of $25.14 billion. Phillips 66 had a net margin of 1.87% and a return on equity of 6.29%. During the same quarter last year, the company posted $0.94 EPS. On average, analysts forecast that Phillips 66 will post $4.33 earnings per share for the current fiscal year.
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Phillips 66 declared that its board has authorized a share repurchase plan on Monday, October 9th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the oil and gas company to buy shares of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board believes its shares are undervalued.
The company also recently announced a quarterly dividend, which will be paid on Friday, December 1st. Investors of record on Tuesday, October 17th will be paid a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a dividend yield of 3.00%. The ex-dividend date of this dividend is Thursday, November 16th. Phillips 66’s dividend payout ratio (DPR) is 83.58%.
In other Phillips 66 news, VP Chukwuemeka A. Oyolu sold 1,151 shares of the business’s stock in a transaction on Tuesday, September 19th. The shares were sold at an average price of $89.08, for a total value of $102,531.08. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 0.50% of the stock is currently owned by insiders.
A number of hedge funds have recently made changes to their positions in the business. Amarillo National Bank purchased a new stake in Phillips 66 in the 3rd quarter worth $229,000. Curbstone Financial Management Corp lifted its stake in Phillips 66 by 107.2% in the 3rd quarter. Curbstone Financial Management Corp now owns 12,904 shares of the oil and gas company’s stock worth $1,182,000 after purchasing an additional 6,677 shares in the last quarter. Norman Fields Gottscho Capital Management LLC lifted its stake in Phillips 66 by 0.8% in the 3rd quarter. Norman Fields Gottscho Capital Management LLC now owns 96,254 shares of the oil and gas company’s stock worth $8,818,000 after purchasing an additional 740 shares in the last quarter. Perpetual Ltd lifted its stake in Phillips 66 by 1.9% in the 2nd quarter. Perpetual Ltd now owns 43,870 shares of the oil and gas company’s stock worth $3,628,000 after purchasing an additional 800 shares in the last quarter. Finally, Intl Fcstone Inc. purchased a new stake in Phillips 66 in the 2nd quarter worth $299,000. Institutional investors and hedge funds own 69.54% of the company’s stock.
About Phillips 66
Phillips 66 is an energy manufacturing and logistics company with midstream, chemicals, refining, and marketing and specialties businesses. The Company operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment gathers, processes, transports and markets natural gas, and transports, stores, fractionates and markets natural gas liquids (NGLs) in the United States.
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