Here Is Why Phillips 66 (PSX) Earnings Reports Matter

On December 03, 2019, Phillips 66 (NYSE:PSX) shares lost -1.38% or -1.58 points to close at $112.75 with a heavy trading volume of 4.128 million shares. It opened the trading session at $113.68, the shares rose to $113.68 and dropped to $112.42, the range by which the price of stock traded the whole day. The company now has a market cap of $50.1 billion and currently has 444.24 million outstanding shares. Phillips 66 (PSX) stock has plunged -4.77 percent of market value in 21 trading days.

PSX stock’s trailing 3-year beta is 1.11, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $10.08 share in the trailing 52 weeks. The stock’s value surged 30.88 percent year to date (YTD) compared to a rise of 20.56 percent in 52 week’s period. The firm’s shares are still trading -5.98 percent below its 1-year high of $119.92 and 43.74 percent up from 52-week low of $78.44. The average consensus ranking on the company is 1.9, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

Phillips 66 (PSX) is most likely going to rise 14.57 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $143-month high price target. This represents a whopping 26.83 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $129.5, which means a return possibility of 14.86 percent in comparison with the closing price of the stock of $112.75 on December 03. The lowest price set for the stock is $110 — just above -2.44 percent from PSX share price now.

Past records have indicated that shares in Phillips 66 rose on 15 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of PSX’s Q4 earnings on January 31. Analysts are predicting revenue to suffer decline of -15.8 percent to $25.1B in the financial fourth quarter, while EPS will soar by about -48.67 percent to $2.5 per share. In the last quarter, it earnings of $0.4 per share came better than the $0.34489, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $29.84B, topping the $28.89B analysts had expected. Earnings are seen to rise by 158.6 percent this year, 19.74 percent in the coming year and the trend continues by -3.85 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at Phillips 66 (NYSE:PSX) and observe the pattern. The earliest insider trade happened on 11/14/2019. Oyolu Chukwuemeka A. parted with a total of 0.46 thousand shares of the firm at average share price of $119.53. The total amount for the sale was set at $55.46 thousand. On completing this exchange, the Vice President & Controller account balance was 25.67 thousand shares. The stock lost -5.67 percent from that insider sale. On 09/16/2019, Herman Robert A, Executive Vice President, did a sale of 47.43 thousand shares at a price of $103.17 per share. This got rid of 4.89 million shares from the insider’s fortune and the stock experienced a 9.29 percent rally in price since the news became public. This exchange saw 50.98 thousand shares get out from the Executive Vice President account.

On 05/28/2019, Director LOWE JOHN E recorded a purchase transaction valued at $165.82 thousand. The purchase at $82.91 a share has added 2 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed 35.99 percent increase since the transaction reporting date. The company insider is left with 53.63 thousand shares remaining in the account. LOWE JOHN E, who works as Director at the company, performed a purchase of 2 thousand shares in a transaction worth $168.82 thousand. The acquisition recorded on 05/09/2019 was priced at $84.41 per share. The stock price soared 33.57 percent since the transaction. LOWE JOHN E currently holds a stake of 51.63 thousand in PSX stock which is worth $5.82 million after the insider buying.

The stock is lingering around the initial support level of $112.22. After this, the following support is at the zone of $111.69. Up until the time the PSX stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 43.52 on the daily chart, and this may be a cause for concern. In case the price goes below $111.69 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $113.48 level may cause a pull-back move approaching $114.21 mark.

Phillips 66 (PSX) shares are trading at a P/E ratio of 11.4 times earnings posted in the trailing 12 months. The industry PSX deals with has an average P/E of 13.7. Its P/B ratio is standing at 2X compared to the 1.6 industry average. It is additionally sporting a 0.5 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.3. Phillips 66 has a 11.8% gross profit margin, with its operating margin around 3.2%. Alongside this, the company’s net profit margin currently stands at 4.3%.