Phillips 66 (PSX) Cut to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of Phillips 66 (NYSE:PSX) from a buy rating to a hold rating in a research note issued to investors 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. Also, the company is strongly committed in returning cash back to the shareholders through both dividend payments and repurchasing shares. However, through 2014 the company’s long-term debt has been continuously increasing and even during the first nine months of 2018, there has been 9.5% increase. Moreover, cash balances plunged 70.4%, reflecting balance sheet concerns. Phillips 66 is also experiencing an upswing in product cost that is reflected in higher total costs.”

PSX has been the topic of several other research reports. Wells Fargo & Co upped their target price on Phillips 66 from $137.00 to $140.00 and gave the company a buy rating in a report on Monday, October 29th. JPMorgan Chase & Co. raised Phillips 66 from a neutral rating to an overweight rating and set a $138.00 target price on the stock in a report on Tuesday, October 30th. They noted that the move was a valuation call. Barclays raised Phillips 66 from an underweight rating to an equal weight rating and lowered their target price for the company from $133.00 to $128.00 in a report on Wednesday, October 3rd. Jefferies Financial Group raised Phillips 66 from an underperform rating to a hold rating and set a $108.00 target price on the stock in a report on Tuesday, October 16th. Finally, ValuEngine lowered Phillips 66 from a buy rating to a hold rating in a report on Friday, August 17th. One analyst has rated the stock with a sell rating, ten have assigned a hold rating and nine have issued a buy rating to the company. The stock has a consensus rating of Hold and an average price target of $121.48.

Phillips 66 stock opened at $89.00 on Thursday. The company has a current ratio of 1.28, a quick ratio of 0.82 and a debt-to-equity ratio of 0.43. The firm has a market capitalization of $41.04 billion, a price-to-earnings ratio of 20.32, a PEG ratio of 1.19 and a beta of 0.99. Phillips 66 has a fifty-two week low of $88.99 and a fifty-two week high of $123.97.

Phillips 66 (NYSE:PSX) last posted its earnings results on Friday, October 26th. The oil and gas company reported $3.10 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $2.50 by $0.60. The company had revenue of $30.59 billion for the quarter, compared to analyst estimates of $28.50 billion. Phillips 66 had a return on equity of 14.97% and a net margin of 5.72%. During the same quarter in the prior year, the company earned $1.66 earnings per share. Equities analysts predict that Phillips 66 will post 8.78 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 3rd. Investors of record on Monday, November 19th will be paid a dividend of $0.80 per share. This represents a $3.20 dividend on an annualized basis and a dividend yield of 3.60%. The ex-dividend date is Friday, November 16th. Phillips 66’s payout ratio is currently 73.06%.

In related news, Director J Brian Ferguson acquired 21,500 shares of the firm’s stock in a transaction that occurred on Tuesday, November 20th. The shares were acquired at an average price of $92.31 per share, with a total value of $1,984,665.00. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.56% of the stock is owned by company insiders.

Several institutional investors and hedge funds have recently bought and sold shares of PSX. Capital Advisors Ltd. LLC boosted its stake in Phillips 66 by 152.4% in the 3rd quarter. Capital Advisors Ltd. LLC now owns 944 shares of the oil and gas company’s stock worth $106,000 after buying an additional 570 shares during the last quarter. Tuttle Tactical Management acquired a new stake in Phillips 66 in the 2nd quarter worth about $107,000. Baker Ellis Asset Management LLC acquired a new stake in Phillips 66 in the 2nd quarter worth about $111,000. Kaizen Advisory LLC boosted its stake in Phillips 66 by 144.3% in the 2nd quarter. Kaizen Advisory LLC now owns 1,004 shares of the oil and gas company’s stock worth $113,000 after buying an additional 593 shares during the last quarter. Finally, Omnia Family Wealth LLC boosted its stake in Phillips 66 by 3,040.6% in the 2nd quarter. Omnia Family Wealth LLC now owns 1,005 shares of the oil and gas company’s stock worth $113,000 after buying an additional 973 shares during the last quarter. 72.57% of the stock is currently owned by institutional investors and hedge funds.

Phillips 66 Company Profile

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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