Phillips 66 (NYSE:PSX) Shares Down 2.9% – Should You Sell?

Phillips 66 (NYSE:PSX) shares were down 2.9% on Monday. The stock traded as low as $274.38 and last traded at $274.7560. 3,874,879 shares were traded during mid-day trading, an increase of 36% from the average daily volume of 2,842,065 shares. The stock had previously closed at $282.83.

Trending Headlines about Phillips 66

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

• Positive Sentiment: Phillips 66 signed a long-term agreement with Restaurant Technologies to source traceable used cooking oil from U.S. restaurants for sustainable aviation fuel and other renewable fuels produced in California. The deal could strengthen PSX’s feedstock supply, support lower-carbon fuel production and expand its renewable fuels platform. Phillips 66 and Restaurant Technologies are Converting Used Cooking Oil into Sustainable Aviation Fuel
• Positive Sentiment: Morgan Stanley raised its PSX price target from $284 to $290 and maintained an “overweight” rating, indicating continued confidence in the refining company’s outlook. Morgan Stanley PSX Rating
• Positive Sentiment: Technical coverage highlighted a bullish “golden cross” signal, with shares moving above their 20-day moving average. This suggests improving short-term momentum, although technical signals do not guarantee further gains. Phillips 66 Golden Cross Signal
• Neutral Sentiment: PSX was included among stocks favored by a DuPont-analysis screen, which emphasizes profitability, asset efficiency and leverage. This is supportive of the company’s fundamentals but is not a new earnings or business announcement.
• Neutral Sentiment: Articles are also highlighting Phillips 66 as a stock to watch if oil prices remain above $100 and physical energy markets stay tight. Higher energy prices may support the sector, but refining margins and input costs remain important variables.
• Negative Sentiment: Freedom Broker upgraded Phillips 66 only from “sell” to “hold” and set a $258 price target, below the stock’s recent trading level. The sharply lower target contrasts with Morgan Stanley’s bullish view and may be weighing on investor sentiment. Freedom Broker Upgrades Phillips 66

Wall Street Analysts Forecast Growth

PSX has been the topic of several research reports. UBS Group boosted their price target 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. Mizuho downgraded shares of Phillips 66 from an “outperform” rating to a “neutral” rating and raised their price objective for the stock from $220.00 to $300.00 in a report on Thursday, October 8th. Jefferies Financial Group reiterated a “hold” rating and issued a $276.00 price objective on shares of Phillips 66 in a research note on Sunday, October 11th. Morgan Stanley boosted their target price on shares of Phillips 66 from $284.00 to $290.00 and gave the company an “overweight” rating in a report on Monday. Finally, Weiss Ratings upgraded Phillips 66 from a “buy (b)” rating to a “buy (b+)” rating in a research report on Thursday, October 8th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $269.82.

Phillips 66 Trading Down 2.9%

The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.04 and a current ratio of 1.34. The firm has a market cap of $107.17 billion, a P/E ratio of 8.78, a P/E/G ratio of 0.15 and a beta of 0.69. The firm has a 50 day simple moving average of $266.19 and a 200 day simple moving average of $198.51.

Phillips 66 (NYSE:PSX) last announced its quarterly earnings results on Wednesday, October 28th. The oil and gas company reported $14.08 earnings per share for the quarter, beating the consensus estimate of $11.73 by $2.35. Phillips 66 had a return on equity of 33.12% and a net margin of 7.27%. The firm had revenue of $50.54 billion for the quarter, compared to analysts’ expectations of $44.91 billion. During the same period in the prior year, the business posted $2.52 earnings per share. On average, equities research analysts predict that Phillips 66 will post 33.11 EPS for the current fiscal year.

Phillips 66 Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Tuesday, November 17th will be given a $1.33 dividend. This represents a $5.32 dividend on an annualized basis and a dividend yield of 1.9%. This is an increase from Phillips 66’s previous quarterly dividend of $1.27. The ex-dividend date is Tuesday, November 17th. Phillips 66’s dividend payout ratio (DPR) is 16.22%.

Phillips 66 declared that its Board of Directors has approved a stock repurchase plan on Friday, July 31st that permits the company to repurchase $10 billion in outstanding shares. This buyback authorization permits the oil and gas company to buy up to 11.8% of its shares through open market purchases. Share buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity at Phillips 66

In related news, EVP Richard Harbison sold 52,100 shares of the company’s stock in a transaction that occurred on Wednesday, August 12th. The shares were 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 of the company’s stock, valued at approximately $8,747,673.44. This represents a 57.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Brian Mandell sold 30,000 shares of the stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $215.00, for a total transaction of $6,450,000.00. Following the completion of the sale, the executive vice president owned 61,595 shares in the company, valued at $13,242,925. This represents a 32.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 108,800 shares of company stock valued at $25,016,566. 0.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Phillips 66

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

Phillips 66 Company Profile

Phillips 66 (NYSE: PSX) is an energy manufacturing and logistics company headquartered in Houston, Texas. The company was established in 2012 following the separation of ConocoPhillips’ downstream and midstream businesses.

Phillips 66 operates across midstream, chemicals, refining and marketing. Its midstream activities include gathering, processing, transporting and storing crude oil, natural gas and natural gas liquids. Through its refining operations, the company converts crude oil and other feedstocks into gasoline, diesel, jet fuel, lubricants and other refined petroleum products.

The company markets fuel and related products under the Phillips 66, 76 and Conoco brands, serving retail, commercial, aviation and industrial customers.