Phillips 66 (NYSE:PSX) Stock Rating Cut to Neutral at Mizuho

Phillips 66 (NYSE:PSX) was downgraded by analysts at Mizuho from an “outperform” rating to a “neutral” rating in a research note issued on Thursday, October 8th, MarketBeat Ratings reports. They presently have a $300.00 price target on the oil and gas company’s stock, up from their previous price target of $220.00. Mizuho‘s target price points to a potential upside of 9.69% from the company’s previous close.

A number of other equities research analysts also recently weighed in on PSX. BMO Capital Markets boosted their price target on Phillips 66 from $260.00 to $310.00 and gave the company an “outperform” rating in a research note on Thursday, September 17th. TD Cowen upped their target price on shares of Phillips 66 from $255.00 to $295.00 and gave the stock a “buy” rating in a report on Wednesday, September 30th. Zacks Research raised shares of Phillips 66 from a “hold” rating to a “strong-buy” rating in a research report on Monday, September 7th. Wells Fargo & Company boosted their price target on shares of Phillips 66 from $239.00 to $335.00 and gave the stock an “overweight” rating in a report on Tuesday, September 1st. Finally, Morgan Stanley upped their target price on shares of Phillips 66 from $196.00 to $284.00 and gave the stock an “overweight” rating in a research note on Monday, September 14th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $269.88.

Phillips 66 Trading Up 1.9%

Shares of PSX stock traded up $4.98 during mid-day trading on Thursday, reaching $273.51. The company’s stock had a trading volume of 3,057,002 shares, compared to its average volume of 2,831,441. The company’s 50 day simple moving average is $264.09 and its 200-day simple moving average is $196.48. Phillips 66 has a 12-month low of $127.16 and a 12-month high of $299.39. The firm has a market capitalization of $109.14 billion, a PE ratio of 15.58, a price-to-earnings-growth ratio of 0.16 and a beta of 0.71. The company has a quick ratio of 1.00, a current ratio of 1.32 and a debt-to-equity ratio of 0.57.

Phillips 66 (NYSE:PSX) last announced its earnings results on Wednesday, October 28th. The oil and gas company reported $14.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $11.73 by $2.35. Phillips 66 had a net margin of 4.54% and a return on equity of 19.93%. The company had revenue of $50.54 billion for the quarter, compared to the consensus estimate of $44.91 billion. During the same period in the previous year, the business earned $2.52 EPS. On average, research analysts predict that Phillips 66 will post 31.39 EPS for the current fiscal year.

Phillips 66 declared that its Board of Directors has initiated a stock buyback program on Friday, July 31st that authorizes the company to buy back $10 billion in shares. This buyback authorization authorizes the oil and gas company to reacquire up to 11.8% of its shares through open market purchases. Share buyback programs are typically a sign that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In related news, EVP Richard Harbison sold 52,100 shares of the business’s stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $223.76, for a total value of $11,657,896.00. Following the completion of the sale, 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 transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Brian Mandell sold 30,000 shares of Phillips 66 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 of the company’s stock, 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. Insiders sold 108,800 shares of company stock valued at $25,016,566 over the last ninety days. Corporate insiders own 0.40% of the company’s stock.

Institutional Investors Weigh In On Phillips 66

Institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. bought a new position in shares of Phillips 66 during the second quarter worth about $5,766,779,000. State Street Corp grew its holdings in shares of Phillips 66 by 1.1% during the second quarter. State Street Corp now owns 26,044,694 shares of the oil and gas company’s stock worth $4,402,856,000 after purchasing an additional 271,841 shares during the last quarter. Bank of New York Mellon Corp acquired a new stake in Phillips 66 in the second quarter worth $1,093,206,000. Amundi lifted its position in Phillips 66 by 62.0% during the 1st quarter. Amundi now owns 3,667,451 shares of the oil and gas company’s stock worth $668,137,000 after buying an additional 1,403,493 shares in the last quarter. Finally, Bank of America Corp DE raised its stake in Phillips 66 by 1.2% in the 1st quarter. Bank of America Corp DE now owns 2,971,036 shares of the oil and gas company’s stock worth $541,263,000 after purchasing an additional 35,167 shares in the last quarter. Hedge funds and other institutional investors own 76.93% of the company’s stock.

Phillips 66 News Roundup

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

• Positive Sentiment: Major earnings beat: Phillips 66 reported adjusted earnings of $14.08 per share, well above analyst estimates of approximately $11.73–$11.97 and up sharply from $2.52 a year earlier. Revenue reached $50.54 billion, exceeding the $44.91 billion consensus estimate. Phillips 66 beats quarterly profit estimates as refining margins soar
• Positive Sentiment: Refining drove record profitability: Third-quarter net income was approximately $5.6 billion, with refining earnings rising to $6.03 billion from $3.06 billion in the prior quarter. Refining utilization was 98%, while processed-input volumes reached a record in the Central Corridor. Higher margins, stronger volumes and elevated fuel-export demand supported the results. Phillips 66 Posts Record $5.6 Billion Profit as Refining Margins Soar
• Positive Sentiment: Cash returns and balance-sheet improvement: The company generated $7.28 billion in operating cash flow, returned $2.8 billion to shareholders through dividends and repurchases, and reduced total debt by roughly $2 billion to $18.5 billion. These actions may reinforce investor confidence in management’s capital-allocation plans. Phillips 66: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Midstream also contributed: Strong midstream volumes and operating performance diversified the quarter’s gains beyond refining, although refining remained the dominant earnings driver. Phillips 66 Reports Third-Quarter Results
• Negative Sentiment: Margin sustainability remains a risk: PSX and other refiner stocks recently sold off as investors questioned whether unusually high refining margins could persist. Easing fuel-market tightness, higher supply or weaker gasoline prices could pressure future earnings even after the strong quarter. Refiner Stocks Just Had Their Worst Day Since the Tariff Shock

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.