Zacks Investment Research downgraded shares of Phillips 66 (NYSE:PSX) from a buy rating to a hold rating in a research note published on Thursday.
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. However, Phillips 66 is bearing the brunt of increasing costs and expenses, affecting income. Moreover, rising debt load and declining cash balance are concerns. The stock has gained 29.9% in the past year, underperforming the industry’s 43.8%. “
Other equities analysts have also recently issued research reports about the company. Argus boosted their price objective on Phillips 66 to $133.00 and gave the company a buy rating in a report on Thursday, May 17th. Morgan Stanley boosted their price objective on Phillips 66 from $135.00 to $140.00 and gave the company an equal weight rating in a report on Monday, July 16th. ValuEngine cut Phillips 66 from a buy rating to a hold rating in a report on Friday, August 17th. Citigroup boosted their price objective on Phillips 66 from $126.00 to $130.00 and gave the company a neutral rating in a report on Friday, September 7th. Finally, Mizuho started coverage on Phillips 66 in a report on Wednesday, August 1st. They set a neutral rating and a $124.00 price objective for the company. Two investment analysts have rated the stock with a sell rating, eleven have given a hold rating and eight have given a buy rating to the company. Phillips 66 presently has a consensus rating of Hold and a consensus target price of $113.86.
PSX opened at $113.60 on Thursday. Phillips 66 has a 52-week low of $86.29 and a 52-week high of $123.97. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.24 and a quick ratio of 0.82. The firm has a market cap of $52.07 billion, a P/E ratio of 25.94, a price-to-earnings-growth ratio of 1.68 and a beta of 0.99.
Phillips 66 (NYSE:PSX) last posted its quarterly earnings data on Friday, July 27th. The oil and gas company reported $2.80 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $2.16 by $0.64. Phillips 66 had a return on equity of 12.87% and a net margin of 5.34%. The company had revenue of $29.74 billion during the quarter, compared to analysts’ expectations of $29.40 billion. During the same quarter in the previous year, the business earned $1.09 EPS. research analysts forecast that Phillips 66 will post 7.92 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which was paid on Tuesday, September 4th. Shareholders of record on Tuesday, August 21st were issued a $0.80 dividend. This represents a $3.20 annualized dividend and a dividend yield of 2.82%. The ex-dividend date was Monday, August 20th. Phillips 66’s dividend payout ratio is 73.06%.
Several hedge funds have recently modified their holdings of PSX. BlackRock Inc. lifted its holdings in shares of Phillips 66 by 8.1% in the 2nd quarter. BlackRock Inc. now owns 29,146,903 shares of the oil and gas company’s stock worth $3,273,487,000 after buying an additional 2,194,280 shares during the period. FMR LLC raised its position in shares of Phillips 66 by 9.0% in the 2nd quarter. FMR LLC now owns 14,400,087 shares of the oil and gas company’s stock worth $1,617,273,000 after acquiring an additional 1,188,567 shares in the last quarter. Cornerstone Wealth Management LLC raised its position in shares of Phillips 66 by 11,191.1% in the 2nd quarter. Cornerstone Wealth Management LLC now owns 887,030 shares of the oil and gas company’s stock worth $8,019,000 after acquiring an additional 879,174 shares in the last quarter. American Century Companies Inc. bought a new position in shares of Phillips 66 in the 2nd quarter worth $89,215,000. Finally, Bahl & Gaynor Inc. raised its position in shares of Phillips 66 by 1,141.7% in the 1st quarter. Bahl & Gaynor Inc. now owns 491,923 shares of the oil and gas company’s stock worth $47,185,000 after acquiring an additional 452,306 shares in the last quarter. Institutional investors and hedge funds 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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