Phillips 66 Stock Receives $146.82 Price Target Amid Analyst Ratings

Shares of Phillips 66 (NYSE: PSX) have been assigned a consensus rating of “Hold” by twenty-three brokerage firms, according to Marketbeat Ratings. The analysts’ outlook includes thirteen who recommend holding the stock, nine who suggest buying it, and one who rates it as a strong buy. The average price target for Phillips 66 over the next year is set at $146.82, with multiple recent updates reflecting a range of expectations.

Recent Analyst Activity

Several investment firms have revised their price targets for Phillips 66. Barclays increased its target from $132.00 to $141.00, maintaining an “equal weight” rating. Similarly, Jefferies Financial Group raised its price objective from $133.00 to $137.00 while keeping a “hold” rating. On the other hand, UBS Group has reiterated a “buy” recommendation and set a target price of $160.00. Morgan Stanley also increased its target from $128.00 to $140.00, maintaining its “equal weight” rating. Lastly, BMO Capital Markets boosted its price target from $152.00 to $160.00.

The stock has been a focal point for analysts, with these recommendations reflecting varying levels of confidence in its future performance.

Quarterly Earnings and Dividend Announcements

Phillips 66 recently reported its quarterly earnings on October 29, 2023. The company announced earnings per share (EPS) of $2.52, surpassing analysts’ estimates of $2.14 by $0.38. The firm recorded a net margin of 1.12% and a return on equity of 5.51%. Revenue for the quarter reached $33.69 billion, exceeding the consensus forecast of $32.29 billion. In the same quarter last year, Phillips 66 reported an EPS of $2.04, indicating a positive trend.

In addition to the earnings announcement, Phillips 66 declared a quarterly dividend of $1.20 per share, which was paid on December 1, 2023, to shareholders on record as of November 17, 2023. This dividend translates to an annualized amount of $4.80 and yields approximately 3.5%. The ex-dividend date was also set for November 17, 2023, with a payout ratio of 131.15%.

Insider Trading Activity

Recent insider trading activities have attracted attention as well. Kevin J. Mitchell, the Chief Financial Officer, sold 30,000 shares on November 7, 2023, at an average price of $138.00, totaling approximately $4.14 million. This sale reduced his shareholding to 89,771 shares, valued at about $12.39 million. Additionally, Brian Mandell, Executive Vice President, sold 25,500 shares on December 1, 2023, at an average price of $140.04, worth around $3.57 million. Following this transaction, he held 56,838 shares, valued at approximately $7.96 million. Over the last ninety days, company insiders have sold a total of 90,486 shares worth over $12.53 million.

Institutional Holdings

Phillips 66 has seen significant trading activities among institutional investors recently. Vanguard Group Inc. increased its stake by 11.6% during the third quarter, now owning 51,724,558 shares valued at approximately $7.04 billion. Elliott Investment Management L.P. raised its holdings by 22.4% in the second quarter, acquiring an additional 3,526,000 shares to reach a total of 19,251,000 shares valued at about $2.30 billion. Geode Capital Management LLC boosted its position by 17.4%, now holding 10,327,304 shares worth around $1.23 billion.

Additionally, Bank of New York Mellon Corp. increased its stake by 6.1%, while Price T Rowe Associates Inc. raised its stake by 11.3% in the first quarter. Institutional investors now own approximately 76.93% of Phillips 66’s stock.

As Phillips 66 continues to navigate the complexities of the energy market, analyst ratings and insider trading activities reflect a dynamic environment that could influence its future performance.