Recent developments in the oil and gas industry have attracted the attention of investors around the world. One particular company, Phillips 66 (NYSE:PSX), has been in the spotlight after GW Henssler & Associates Ltd. decreased its stake in the company by 0.8% in the fourth quarter of 2016. The institutional investor now owns 252,208 shares of Phillips 66 worth $26,250,000. This move makes Phillips 66 one of their top holdings at number 14.
Phillips 66 is a diversified energy manufacturing and logistics company that was spun off from ConocoPhillips in 2012. It operates through several segments including refining, chemicals, midstream, and marketing and specialties. It is a leading producer of gasoline, diesel fuel and other oil-based products.
In addition to this news about GW Henssler & Associates Ltd.’s change of position, Phillips 66 also recently announced an increase in their quarterly dividend payout ratio from $0.97 to $1.05 per share. This represents an annualized dividend of $4.20 per share with a current yield of 4.19%, making it an attractive opportunity for income-seeking investors.
Director Gregory Hayes has also shown confidence in the company’s future by purchasing 10,250 shares at an average price of $97.75 per share on February 2nd, bringing his total ownership up to over $1 million worth of stock.
Overall, these developments suggest that Phillips 66 may be worth considering for investment portfolios looking for strong returns amidst recent fluctuations in the energy sector. While not everyone may agree on whether or not this opportunity is right for them specifically as with all investments- diversification combined with sound judgement will ensure successful results regardless of fluctuations within any one sector- something that a well balanced portfolio offers to those seeking growth opportunities without exposing themselves too much risk-wise as they broaden their investment horizons.
Phillips 66: Institutional Investors Show Strong Confidence Amid Mixed Earnings and Dividend Increases
Phillips 66 has attracted a lot of attention recently as several institutional investors have modified their holdings in the company. Regal Investment Advisors LLC acquired a new stake in shares of Phillips 66 in the third quarter valued at $310,000. Intrua Financial LLC grew its stake by 20.5% during the fourth quarter, while Neuberger Berman Group LLC grew its stake by 2.4% during the third quarter. International Assets Investment Management LLC grew its stake by a staggering 1,218.7% during the same period. Finally, Wipfli Financial Advisors LLC acquired a new position in Phillips 66 during the third quarter worth $324,000.
According to sources, an impressive 70.76% of the stock is owned by institutional investors and hedge funds who believe that it is going places. Analyst reports back up this confidence too; five research analysts have rated Phillips 66 stock with a hold rating and ten have assigned it a buy rating taking into account several factors like dividends.
The most recent earnings report from Phillips 66 showed some mixed results for investors which also led to fewer recommendations from analysts growing after this report’s release. The oil and gas company reported earnings per share of $4 for Q1 on January 31st which was lower than analysts’ consensus estimate of $4.35 by ($0.35). It was then followed by dividend news earlier this month with Phillps announcing their quarterly dividend prices will increase with representation of strong investor faith provided through them by payouts made thus far attributing reinforcement towards long-term profits forecasts.
Phillips 66’s payout ratio sits around18%, now representing an annualized dividend of $4.20 equating to an average yield target rate of approximately 4%. Reports show that Phillips’ stock had traded within a narrow range before this announcement. And to much surprise, the dividend increase boosted stock price by approximately $1.50.
On March 28th, JPMorgan Chase & Co. lifted its target price from $112 to $120 for Phillips 66 and provided an “overweight” rating on the oil company’s stock in their report. This came after Royal Bank of Canada raised their target price to over $130 and rated it as being satisfactory enough for long-term investments according to them.
The shares of Phillips 66 fell on Friday by a small margin of $1.10 selling at around $100.15, which is still expected considering it`s performance in recent weeks and months reflected in market cap figures and multiple reports regarding investor confidence lately.
Phillips enjoys a solid financial position with plenty of assets. Their current ratio is 1.38, and their quick ratio is 1.17 while they operate with a debt-to-equity ratio of 0.49, producing strong free cash flow returns seen within its earnings forecasts . Still trading below past highs but near present values if measured against other firms or commodities on the market today makes this a tricky buy call decision for many investors- all depending specifically on how well convinced you are on the oil company’s potential growth prospects as global demand for oil slowly recovers amidst improving economic environments in some regions around the world with continued political concerns remaining uncertainties – making this less ideal than some other stocks out there that may exhibit certain risk mitigation safeguards or offer high yielding dividends alongside their low earning-per-share ratios ever-presently revealed during earnings seasons or put up performances but may not provide the same level of returns over time or help limit downside risks associated accordingly with hedging against various factors affecting overall portfolios diversification-wise when analysed further by experienced financial analyst evaluating each firm comprehensively in detailed prioritisation manner proving challenging yet highly ascertainable through proper due diligence research processes according to industry professional traders we spoke with recently.
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