Phillips 66 (NYSE:PSX) Sets New 1-Year High – Time to Buy?

Phillips 66 (NYSE:PSX) hit a new 52-week high during mid-day trading on Thursday. The stock traded as high as $278.26 and last traded at $277.4120, with a volume of 395,545 shares changing hands. The stock had previously closed at $271.62.

Key Phillips 66 News

Here are the key news stories impacting Phillips 66 this week:

• Positive Sentiment: Refining margins remain unusually strong. Tight fuel markets, low inventories and elevated crack spreads are supporting profitability for independent refiners, with industry indicators pointing to a potentially stronger third quarter than the prior period. Refiners Phillips 66, Delek, Par Pacific cut at Mizuho after more than doubling YTD
• Positive Sentiment: Investors are positioning ahead of Phillips 66’s October 28 earnings report, with market expectations for strong refining results helping lift sentiment. The company also provided a clearer succession plan for its refining division after announcing its current refining chief’s retirement and the appointment of a former executive to lead the unit. Phillips 66 Rises as Strong Refining Margins and Recent Company Updates Support Shares
• Neutral Sentiment: Phillips 66 reached a fresh 52-week high, reflecting strong momentum, but the move also raises valuation and profit-taking concerns after a substantial year-to-date rally. Phillips 66 Hits Fresh High: Is There Still Room to Run?
• Negative Sentiment: Mizuho downgraded Phillips 66 to Neutral from Outperform, saying the refining-stock rally has largely priced in higher earnings and leaves limited average upside. Although Mizuho raised its PSX target to $300, the downgrade signals reduced near-term conviction. Mizuho cuts Phillips 66, Delek, Par Pacific as refiner rally prices in gains
• Negative Sentiment: The United States plans to temporarily allow additional Russian diesel supplies, including potentially millions of tons. The added supply pushed diesel futures lower and could pressure diesel prices and refining margins, creating a headwind for PSX’s refining earnings. Trump Announces Russian Diesel Supply Agreement Following Putin Talks, U.S. Eases Sanctions

Analysts Set New Price Targets

PSX has been the subject of several research analyst reports. Wells Fargo & Company upped their price target on shares of Phillips 66 from $239.00 to $335.00 and gave the stock an “overweight” rating in a research report on Tuesday, September 1st. BMO Capital Markets boosted their price objective on Phillips 66 from $260.00 to $310.00 and gave the stock an “outperform” rating in a research note on Thursday, September 17th. TD Cowen increased their target price on Phillips 66 from $255.00 to $295.00 and gave the company a “buy” rating in a report on Wednesday, September 30th. Wall Street Zen upgraded Phillips 66 from a “buy” rating to a “strong-buy” rating in a research report on Sunday, July 26th. Finally, Jefferies Financial Group lifted their price target on Phillips 66 from $191.00 to $207.00 and gave the stock a “hold” rating in a research note on Thursday, July 9th. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $252.00.

Phillips 66 Trading Down 1.4%

The company has a market capitalization of $110.77 billion, a PE ratio of 15.82 and a beta of 0.71. The company has a fifty day simple moving average of $248.12 and a 200-day simple moving average of $203.27. The company has a current ratio of 1.32, a quick ratio of 1.00 and a debt-to-equity ratio of 0.57.

Phillips 66 (NYSE:PSX) last posted its quarterly earnings results on Wednesday, August 5th. The oil and gas company reported $9.41 EPS for the quarter, topping the consensus estimate of $7.50 by $1.91. Phillips 66 had a return on equity of 19.93% and a net margin of 4.54%. The business had revenue of $51 billion for the quarter, compared to analyst estimates of $43.60 billion. During the same quarter in the previous year, the firm earned $2.38 EPS. Analysts predict that Phillips 66 will post 29.01 EPS for the current year.

Phillips 66 announced that its board has initiated a stock repurchase program on Friday, July 31st that allows the company to repurchase $10.00 billion in outstanding shares. This buyback authorization allows the oil and gas company to reacquire up to 11.8% of its shares through open market purchases. Share buyback programs are typically a sign that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at Phillips 66

In other news, EVP Brian Mandell sold 23,400 shares of the company’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 $16,326,370.70. This represents a 27.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Richard Harbison sold 52,100 shares of the stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $223.76, for a total value of $11,657,896.00. Following the transaction, the executive vice president owned 39,094 shares of the company’s stock, valued at approximately $8,747,673.44. This represents a 57.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 112,886 shares of company stock worth $25,878,894 over the last quarter. 0.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Phillips 66

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

About Phillips 66

Phillips 66 is an energy manufacturing and logistics company engaged in the processing, transportation, storage and marketing of energy products. Its operations include refining crude oil into gasoline, diesel, jet fuel, lubricants and other refined products, as well as distributing and marketing fuels under the Phillips 66, 76 and JET brands.

The company also operates midstream infrastructure, including pipelines, terminals, processing facilities and storage assets that support the movement of crude oil, natural gas liquids and refined products.