Phillips 66 (PSX) Upgraded to Buy by Zacks Investment Research
Zacks Investment Research upgraded shares of Phillips 66 (NYSE:PSX) from a hold rating to a buy rating in a report published on Tuesday morning. They currently have $128.00 target price on the oil and gas company’s stock.
According to Zacks, “In terms of size, efficiency and strength, Phillips 66 is a leading player in each of its operational segments – refining, chemicals and midstream. Midstream business is in high demand in the United States as there is a huge need for fresh pipeline and infrastructure properties in the flourishing shales owing to the existing bottleneck problems. To capitalize the recent trend the company is planning to allocate most of its 2018 capital budget for midstream operations. Moreover, the company is strongly committed in returning cash back to the shareholders through both dividend payments and repurchasing shares. Since 2013, the company has been persistently increasing its annualized dividend. In fact, through 2018, the firm is planning to pay annualized dividend of $3.10 per share, higher than $2.73 in 2017.”
Other research analysts have also issued reports about the company. Citigroup boosted their price target on Phillips 66 from $126.00 to $130.00 and gave the stock a neutral rating in a research report on Friday, September 7th. Argus boosted their price target on Phillips 66 to $133.00 and gave the stock a buy rating in a research report on Thursday, May 17th. Mizuho began coverage on Phillips 66 in a research report on Wednesday, August 1st. They issued a neutral rating and a $124.00 price target for the company. ValuEngine lowered Phillips 66 from a buy rating to a hold rating in a research report on Friday, August 17th. Finally, JPMorgan Chase & Co. boosted their price target on Phillips 66 from $127.00 to $132.00 and gave the company a neutral rating in a research note on Monday, June 4th. Two research analysts have rated the stock with a sell rating, ten have given a hold rating and nine have given a buy rating to the company’s stock. The company has an average rating of Hold and an average price target of $113.86.
Phillips 66 (NYSE:PSX) last released its quarterly earnings results on Friday, July 27th. The oil and gas company reported $2.80 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $2.16 by $0.64. The firm had revenue of $29.74 billion during the quarter, compared to analyst estimates of $29.40 billion. Phillips 66 had a return on equity of 12.87% and a net margin of 5.34%. During the same period in the previous year, the company posted $1.09 EPS. research analysts expect that Phillips 66 will post 7.83 earnings per share for the current year.
The business also recently announced a quarterly dividend, which was paid on Tuesday, September 4th. Stockholders of record on Tuesday, August 21st were paid a $0.80 dividend. The ex-dividend date of this dividend was Monday, August 20th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 2.84%. Phillips 66’s payout ratio is 73.06%.
Institutional investors and hedge funds have recently modified their holdings of the company. Sei Investments Co. boosted its stake in shares of Phillips 66 by 14.7% in the second quarter. Sei Investments Co. now owns 152,841 shares of the oil and gas company’s stock worth $17,166,000 after buying an additional 19,537 shares during the last quarter. Brookstone Capital Management boosted its stake in shares of Phillips 66 by 39.3% in the second quarter. Brookstone Capital Management now owns 4,376 shares of the oil and gas company’s stock worth $491,000 after buying an additional 1,234 shares during the last quarter. BB&T Securities LLC boosted its position in Phillips 66 by 1.7% during the second quarter. BB&T Securities LLC now owns 118,907 shares of the oil and gas company’s stock worth $13,353,000 after purchasing an additional 1,956 shares in the last quarter. Twin Tree Management LP purchased a new position in Phillips 66 during the second quarter worth approximately $3,338,000. Finally, First Republic Investment Management Inc. boosted its position in Phillips 66 by 17.3% during the second quarter. First Republic Investment Management Inc. now owns 130,687 shares of the oil and gas company’s stock worth $14,678,000 after purchasing an additional 19,279 shares in the last quarter. Hedge funds and other institutional investors own 69.48% of the company’s stock.
About Phillips 66
Phillips 66 operates as an energy manufacturing and logistics company. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment transports crude oil and other feedstocks, delivers refined products to market, and provides terminaling and storage services for crude oil and petroleum products; transports, stores, fractionates, and markets natural gas liquids, exports LPG, and provides other fee-based processing services; and gathers, processes, transports, and markets natural gas.
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