Phillips 66 (NYSE:PSX) Shares Gap Down on Disappointing Earnings

Phillips 66 (NYSE:PSX) shares gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $157.24, but opened at $152.50. Phillips 66 shares last traded at $150.37, with a volume of 930,074 shares traded.

The oil and gas company reported $1.90 EPS for the quarter, missing the consensus estimate of $2.60 by ($0.70). Phillips 66 had a net margin of 4.68% and a return on equity of 22.10%. During the same period in the prior year, the firm posted $4.21 earnings per share.

Phillips 66 Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 3rd. Stockholders of record on Monday, May 20th will be issued a dividend of $1.15 per share. The ex-dividend date is Friday, May 17th. This is a positive change from Phillips 66’s previous quarterly dividend of $1.05. This represents a $4.60 dividend on an annualized basis and a dividend yield of 3.03%. Phillips 66’s payout ratio is 27.15%.

Analysts Set New Price Targets

PSX has been the subject of a number of research analyst reports. Citigroup initiated coverage on Phillips 66 in a report on Wednesday, January 24th. They set a “buy” rating for the company. Bank of America upped their target price on Phillips 66 from $150.00 to $180.00 and gave the company a “neutral” rating in a research note on Friday, March 15th. JPMorgan Chase & Co. upped their target price on Phillips 66 from $149.00 to $167.00 and gave the company an “overweight” rating in a research note on Monday, April 1st. Barclays upped their target price on Phillips 66 from $139.00 to $155.00 and gave the company an “equal weight” rating in a research note on Thursday, April 18th. Finally, Piper Sandler upped their target price on Phillips 66 from $169.00 to $187.00 and gave the company an “overweight” rating in a research note on Friday, April 5th. Five equities research analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $158.00.

Insider Transactions at Phillips 66

In other news, Director Robert W. Pease acquired 682 shares of the firm’s stock in a transaction that occurred on Thursday, February 15th. The stock was acquired at an average cost of $146.58 per share, for a total transaction of $99,967.56. Following the completion of the acquisition, the director now owns 1,900 shares in the company, valued at $278,502. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In other Phillips 66 news, VP Joseph Scott Pruitt sold 5,922 shares of the firm’s stock in a transaction that occurred on Monday, March 18th. The stock was sold at an average price of $157.40, for a total value of $932,122.80. Following the completion of the transaction, the vice president now directly owns 6,583 shares in the company, valued at $1,036,164.20. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Robert W. Pease bought 682 shares of Phillips 66 stock in a transaction dated Thursday, February 15th. The shares were acquired at an average price of $146.58 per share, with a total value of $99,967.56. Following the completion of the purchase, the director now directly owns 1,900 shares in the company, valued at approximately $278,502. The disclosure for this purchase can be found here. Insiders have sold a total of 35,056 shares of company stock valued at $5,272,681 over the last 90 days. 0.22% of the stock is owned by company insiders.

Institutional Trading of Phillips 66

Several institutional investors have recently added to or reduced their stakes in the company. Wellington Management Group LLP boosted its stake in Phillips 66 by 20.3% in the 4th quarter. Wellington Management Group LLP now owns 10,903,130 shares of the oil and gas company’s stock valued at $1,451,643,000 after purchasing an additional 1,842,226 shares during the period. Bank of New York Mellon Corp boosted its stake in Phillips 66 by 38.0% in the 1st quarter. Bank of New York Mellon Corp now owns 8,019,795 shares of the oil and gas company’s stock valued at $1,309,954,000 after purchasing an additional 2,209,043 shares during the period. Barclays PLC boosted its stake in Phillips 66 by 4.2% in the 3rd quarter. Barclays PLC now owns 7,760,709 shares of the oil and gas company’s stock valued at $932,447,000 after purchasing an additional 309,239 shares during the period. Morgan Stanley boosted its stake in Phillips 66 by 2.1% in the 3rd quarter. Morgan Stanley now owns 6,768,960 shares of the oil and gas company’s stock valued at $813,291,000 after purchasing an additional 138,646 shares during the period. Finally, Northern Trust Corp lifted its position in shares of Phillips 66 by 6.2% during the 3rd quarter. Northern Trust Corp now owns 4,881,094 shares of the oil and gas company’s stock valued at $586,463,000 after acquiring an additional 283,010 shares during the period. 76.93% of the stock is currently owned by institutional investors.

Phillips 66 Trading Down 3.5 %

The business has a 50-day moving average price of $155.40 and a two-hundred day moving average price of $136.60. The stock has a market capitalization of $64.93 billion, a P/E ratio of 9.70, a P/E/G ratio of 1.91 and a beta of 1.37. The company has a current ratio of 1.26, a quick ratio of 1.02 and a debt-to-equity ratio of 0.56.

About Phillips 66

Phillips 66 operates as an energy manufacturing and logistics company in the United States, the United Kingdom, Germany, and internationally. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment transports crude oil and other feedstocks; delivers refined petroleum products to market; provides terminaling and storage services for crude oil and refined petroleum products; transports, stores, fractionates, exports, and markets natural gas liquids; provides other fee-based processing services; and gathers, processes, transports, and markets natural gas.