Phillips 66 (NYSE:PSX) Stock Price Down 1.2% – Should You Sell?

Phillips 66 (NYSE:PSX)’s share price traded down 1.2% on Tuesday. The stock traded as low as $271.46 and last traded at $271.8630. 2,888,191 shares traded hands during trading, an increase of 2% from the average session volume of 2,838,521 shares. The stock had previously closed at $275.04.

More Phillips 66 News

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

• Positive Sentiment: Phillips 66 agreed to a long-term supply arrangement with Restaurant Technologies, sourcing used cooking oil from U.S. restaurants for renewable diesel and sustainable aviation fuel production at its Rodeo complex. The deal supports feedstock availability and the company’s lower-carbon fuels business. Article: Phillips 66 Secures Long Term Used Cooking Oil Supply For Renewable Fuels
• Positive Sentiment: Morgan Stanley’s headline points to expected price appreciation for Phillips 66, though the available report details do not provide its forecast or rationale. Article: Morgan Stanley Forecasts Strong Price Appreciation for Phillips 66
• Neutral Sentiment: Citigroup raised its price target to $302 from $297 but kept a neutral rating. The higher target signals increased valuation expectations, while the unchanged rating suggests the firm is not recommending an outright buy. Article: Citigroup Adjusts Price Target on Phillips 66 to $302 From $297
• Negative Sentiment: A report highlighted a sharp one-session decline in PSX shares, indicating near-term selling pressure. It did not specify a company-related catalyst for the drop. Article: Phillips 66 Drops in One Session

Analyst Upgrades and Downgrades

A number of research firms have weighed in on PSX. Wells Fargo & Company upped their target price on Phillips 66 from $345.00 to $346.00 and gave the stock an “overweight” rating in a report on Thursday, October 29th. Barclays raised their target price on Phillips 66 from $216.00 to $282.00 and gave the company an “equal weight” rating in a research note on Monday, October 12th. Zacks Research upgraded Phillips 66 from a “hold” rating to a “strong-buy” rating in a research report on Monday, September 7th. TD Cowen lifted their price target on Phillips 66 from $295.00 to $308.00 and gave the company a “buy” rating in a research report on Thursday, October 22nd. Finally, Mizuho cut Phillips 66 from an “outperform” rating to a “neutral” rating and upped their price target for the stock from $220.00 to $300.00 in a research note on Thursday, October 8th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, Phillips 66 has an average rating of “Moderate Buy” and a consensus price target of $270.12.

Phillips 66 Stock Down 4.9%

The company’s fifty day moving average price is $267.95 and its 200-day moving average price is $200.98. The stock has a market capitalization of $96.30 billion, a PE ratio of 9.82, a price-to-earnings-growth ratio of 0.14 and a beta of 0.69. The company has a quick ratio of 1.04, a current ratio of 1.34 and a debt-to-equity ratio of 0.49.

Phillips 66 (NYSE:PSX) last posted its quarterly earnings results 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. Phillips 66 had a return on equity of 33.12% and a net margin of 7.27%. The company had revenue of $50.54 billion for the quarter, compared to the consensus estimate of $44.91 billion. During the same quarter in the prior year, the business posted $2.52 EPS. Analysts forecast that Phillips 66 will post 33.63 earnings per share for the current year.

Phillips 66 Increases Dividend

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

Phillips 66 announced that its board has approved a share repurchase program on Friday, July 31st that authorizes the company to buy back $10 billion in shares. This repurchase authorization authorizes the oil and gas company to reacquire up to 11.8% of its shares through open market purchases. Share repurchase programs are often an indication that the company’s management believes its stock is undervalued.

Insiders Place Their Bets

In related news, EVP Richard G. Harbison sold 52,100 shares of the company’s stock in a transaction dated Wednesday, August 12th. The shares were 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 in the company, valued at $8,747,673.44. The trade was a 57.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Brian Mandell sold 23,400 shares of the stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $265.06, for a total transaction of $6,202,404.00. Following the sale, the executive vice president directly owned 61,595 shares in the company, valued at $16,326,370.70. This trade represents a 27.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 108,800 shares of company stock worth $25,016,566. Insiders own 0.40% of the company’s stock.

Institutional Trading of Phillips 66

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Richardson Financial Services Inc. raised its stake in Phillips 66 by 142.5% during the third quarter. Richardson Financial Services Inc. now owns 97 shares of the oil and gas company’s stock valued at $25,000 after purchasing an additional 57 shares in the last quarter. NFSG Corp increased its holdings in shares of Phillips 66 by 105.6% in the 1st quarter. NFSG Corp now owns 146 shares of the oil and gas company’s stock worth $27,000 after buying an additional 75 shares during the last quarter. Axiom Investment Management LLC bought a new stake in shares of Phillips 66 in the 1st quarter worth about $27,000. Compass Financial Management LLC purchased a new stake in shares of Phillips 66 during the 2nd quarter valued at about $28,000. Finally, Kelleher Financial Advisors purchased a new stake in shares of Phillips 66 during the 2nd quarter valued at about $29,000. 76.93% of the stock is currently owned by institutional investors.

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.