Sunoco (NYSE:SUN) Shares Cross Below 200-Day Moving Average After Earnings Miss

Sunoco LP (NYSE:SUN) shares passed below its 200-day moving average during trading on Wednesday following a dissappointing earnings announcement. The stock has a 200-day moving average of $68.58 and traded as low as $64.67. Sunoco shares last traded at $64.67, with a volume of 882,718 shares trading hands.

The oil and gas company reported $2.07 EPS for the quarter, missing the consensus estimate of $2.46 by ($0.39). Sunoco had a net margin of 2.88% and a return on equity of 18.78%. The business had revenue of $18.03 billion during the quarter, compared to analysts’ expectations of $11.76 billion. During the same period last year, the company earned $0.64 earnings per share.

Sunoco Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Friday, November 6th will be paid a dividend of $1.0148 per share. This represents a $4.06 dividend on an annualized basis and a dividend yield of 6.3%. The ex-dividend date of this dividend is Friday, November 6th. This is a positive change from Sunoco’s previous quarterly dividend of $1.0023. Sunoco’s dividend payout ratio is 89.60%.

Sunoco News Roundup

Here are the key news stories impacting Sunoco this week:

• Positive Sentiment: Third-quarter net income rose to $499 million from $137 million a year earlier, while adjusted EBITDA more than doubled to $1.049 billion from $489 million. Revenue was $18.03 billion. Sunoco reports record third-quarter earnings as net income triples
• Positive Sentiment: Sunoco increased its quarterly distribution by 1.2% to $1.0148 per unit, offering investors a higher payout. Sunoco LP raises dividend
• Positive Sentiment: Management indicated that $500 million a year in bolt-on acquisitions would be a “modest” target and signaled 2027 could bring another record year, pointing to continued growth ambitions. Sunoco expects $500M a year of bolt-on acquisitions
• Negative Sentiment: Reported EPS of $2.07 missed the $2.46 analyst consensus. The earnings miss could weigh on sentiment, even though revenue of $18.03 billion exceeded the $11.76 billion estimate. Sunoco Q3 Net Income Per Common Unit, Revenue Rise

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on SUN shares. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Sunoco in a research note on Tuesday, August 18th. Wall Street Zen lowered Sunoco from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. Mizuho set a $83.00 price objective on shares of Sunoco in a research report on Friday, July 24th. Citigroup lifted their target price on Sunoco from $73.00 to $81.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Finally, JPMorgan Chase & Co. assumed coverage on shares of Sunoco in a report on Tuesday, October 20th. They issued an “overweight” rating and a $87.00 price objective on the stock. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus price target of $80.12.

Institutional Investors Weigh In On Sunoco

Several institutional investors have recently modified their holdings of the company. Recurrent Investment Advisors LLC boosted its position in shares of Sunoco by 51.5% during the 1st quarter. Recurrent Investment Advisors LLC now owns 1,027,877 shares of the oil and gas company’s stock worth $66,781,000 after acquiring an additional 349,254 shares in the last quarter. Infrastructure Capital Advisors LLC raised its holdings in Sunoco by 34.1% during the first quarter. Infrastructure Capital Advisors LLC now owns 972,935 shares of the oil and gas company’s stock worth $63,212,000 after purchasing an additional 247,569 shares in the last quarter. Allianz Asset Management GmbH lifted its position in shares of Sunoco by 12.4% during the 2nd quarter. Allianz Asset Management GmbH now owns 369,073 shares of the oil and gas company’s stock worth $24,912,000 after buying an additional 40,758 shares during the last quarter. International Assets Investment Management LLC lifted its position in shares of Sunoco by 2,633.2% during the 3rd quarter. International Assets Investment Management LLC now owns 300,000 shares of the oil and gas company’s stock worth $21,861,000 after buying an additional 289,024 shares during the last quarter. Finally, Bank of America Corp DE boosted its holdings in shares of Sunoco by 32.0% in the 1st quarter. Bank of America Corp DE now owns 204,609 shares of the oil and gas company’s stock valued at $13,293,000 after buying an additional 49,589 shares in the last quarter. 24.29% of the stock is owned by hedge funds and other institutional investors.

Sunoco Stock Performance

The firm’s fifty day moving average price is $74.32 and its 200-day moving average price is $68.58. The company has a current ratio of 1.29, a quick ratio of 0.83 and a debt-to-equity ratio of 1.95. The firm has a market cap of $13.25 billion, a price-to-earnings ratio of 14.31 and a beta of 0.42.

About Sunoco

Sunoco LP (NYSE:SUN) is a master limited partnership focused primarily on the distribution and wholesale marketing of motor fuels. The company supplies gasoline, diesel and other refined products to independent fuel retailers, commercial customers, distributors and other end users, including customers operating under the Sunoco brand.

Sunoco’s operations include fuel terminals, pipelines, transportation assets and other logistics infrastructure used to receive, store, blend and deliver petroleum products.