Phillips 66 (NYSE:PSX) Shares Down 4.9% – Should You Sell?

Phillips 66 (NYSE:PSX) traded down 4.9% during trading on Thursday. The company traded as low as $246.57 and last traded at $246.8680. 5,084,233 shares traded hands during mid-day trading, an increase of 78% from the average session volume of 2,858,109 shares. The stock had previously closed at $259.63.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the stock. Wall Street Zen upgraded shares of Phillips 66 from a “buy” rating to a “strong-buy” rating in a research note on Sunday, July 26th. Zacks Research upgraded shares of Phillips 66 from a “hold” rating to a “strong-buy” rating in a research note on Monday, September 7th. Barclays raised their price objective on shares of Phillips 66 from $216.00 to $282.00 and gave the stock an “equal weight” rating in a report on Monday, October 12th. UBS Group lifted their target price on shares of Phillips 66 from $235.00 to $300.00 and gave the company a “buy” rating in a research report on Tuesday, September 8th. Finally, Citigroup lifted their target price on shares of Phillips 66 from $297.00 to $302.00 and gave the company a “neutral” rating in a research report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $270.12.

Phillips 66 Stock Down 0.6%

The firm has a market cap of $95.74 billion, a price-to-earnings ratio of 7.84, a PEG ratio of 0.15 and a beta of 0.69. The business’s 50-day moving average is $268.05 and its 200-day moving average is $201.52. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.04 and a current ratio of 1.34.

Phillips 66 (NYSE:PSX) last posted its quarterly earnings data on Wednesday, October 28th. The oil and gas company reported $14.08 earnings per share for the quarter, topping the consensus estimate of $11.73 by $2.35. The company had revenue of $50.54 billion during the quarter, compared to analyst estimates of $44.91 billion. Phillips 66 had a net margin of 7.27% and a return on equity of 33.12%. During the same quarter last year, the business posted $2.52 earnings per share. On average, equities analysts predict that Phillips 66 will post 33.63 EPS for the current year.

Phillips 66 Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Tuesday, November 17th will be paid a $1.33 dividend. This is an increase from Phillips 66’s previous quarterly dividend of $1.27. This represents a $5.32 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend is Tuesday, November 17th. Phillips 66’s payout ratio is presently 16.22%.

Phillips 66 declared that its board has approved a share repurchase program on Friday, July 31st that allows the company to buy back $10 billion in outstanding shares. This repurchase authorization allows the oil and gas company to buy up to 11.8% of its shares through open market purchases. Share repurchase programs are generally a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling at Phillips 66

In other news, 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 transaction of $11,657,896.00. Following the sale, the executive vice president owned 39,094 shares in the company, valued at approximately $8,747,673.44. This represents a 57.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Brian Mandell sold 23,400 shares of Phillips 66 stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $265.06, for a total value of $6,202,404.00. Following the completion of the transaction, the executive vice president directly owned 61,595 shares of the company’s stock, valued at $16,326,370.70. This represents a 27.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 108,800 shares of company stock worth $25,016,566 in the last 90 days. Company insiders own 0.40% of the company’s stock.

Institutional Investors Weigh In On Phillips 66

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. bought a new stake in shares of Phillips 66 during the second quarter valued at approximately $5,766,779,000. Bank of New York Mellon Corp bought a new position in Phillips 66 in the 2nd quarter valued at $1,093,206,000. Bank of America Corp DE acquired a new stake in shares of Phillips 66 in the 2nd quarter valued at $469,970,000. Legal & General Group Plc acquired a new stake in shares of Phillips 66 in the 2nd quarter valued at $303,648,000. Finally, Deutsche Bank AG acquired a new stake in shares of Phillips 66 in the 2nd quarter valued at $271,128,000. Institutional investors and hedge funds own 76.93% of the company’s stock.

About Phillips 66

Phillips 66 (NYSE: PSX) is an integrated energy company with businesses spanning refining, midstream operations, chemicals, and marketing. It processes crude oil and other feedstocks into transportation fuels and other petroleum products, including gasoline, diesel, and jet fuel.

The company’s midstream operations include the transportation, processing, storage, and marketing of crude oil, natural gas, natural gas liquids, and refined products. Phillips 66 also markets fuels and related products through retail and wholesale channels, including under the Phillips 66, 76, and JET brands.

Phillips 66 was established in 2012 when ConocoPhillips separated its downstream and midstream businesses.