Phillips 66 [NYSE: PSX] loss -3.50% or -3.13 points to close at $86.33 with a heavy trading volume of 3997275 shares. The company report on August 17, 2022 that Phillips 66 Announces Offer to Acquire Outstanding Publicly Held Common Units of DCP Midstream, LP.
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Concurrent with Phillips 66’s (NYSE: PSX) announcement of the realignment of economic and governance interests in DCP Midstream, LP (DCP Midstream), Phillips 66 also announced today it has submitted a non-binding proposal to the board of directors of the general partner of DCP Midstream offering to acquire all publicly held common units of DCP Midstream for cash. Subject to negotiation and execution of a definitive agreement, Phillips 66 is proposing consideration of $34.75 for each outstanding publicly-held common unit of DCP Midstream as part of a transaction that would be structured as a merger of DCP Midstream with an indirect subsidiary of Phillips 66 with DCP Midstream as the surviving entity.
The proposed transaction is subject to the negotiation and execution of a definitive agreement and approval of such definitive agreement and transactions contemplated thereunder by the board of directors of the general partner of DCP Midstream and a conflicts committee thereof. The consummation of the proposed transaction would also be subject to customary closing conditions. There can be no assurance that any such approvals will be forthcoming, that a definitive agreement will be executed or that any transaction will be consummated.
It opened the trading session at $87.76, the shares rose to $88.3767 and dropped to $84.40, the range by which the price of stock traded the whole day. The daily chart for PSX points out that the company has recorded 4.01% gains over the past six months. However, it is still -36.62% lower than its most recent low trading price.
If we look at the average trading volume of 3.63M shares, PSX reached to a volume of 3997275 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Phillips 66 [PSX]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PSX shares is $113.84 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PSX stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
BMO Capital Markets have made an estimate for Phillips 66 shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on June 14, 2022. While these analysts kept the previous recommendation, Citigroup raised their target price to Neutral. The new note on the price target was released on April 26, 2022, representing the official price target for Phillips 66 stock. Previously, the target price had yet another raise from $104 to $105, while Wells Fargo kept a Overweight rating on PSX stock. On January 31, 2022, analysts increased their price target for PSX shares from 100 to 104.
The Average True Range (ATR) for Phillips 66 is set at 3.09, with the Price to Sales ratio for PSX stock in the period of the last 12 months amounting to 0.29. The Price to Book ratio for the last quarter was 1.72, with the Price to Cash per share for the same quarter was set at 5.74. Price to Free Cash Flow for PSX in the course of the last twelve months was 12.58 with Quick ratio for the last quarter at 1.00.
Trading performance analysis for PSX stock
Phillips 66 [PSX] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -7.97. With this latest performance, PSX shares gained by 0.96% in over the last four-week period, additionally plugging by 4.01% over the last 6 months – not to mention a rise of 24.74% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PSX stock in for the last two-week period is set at 43.52, with the RSI for the last a single of trading hit 37.53, and the three-weeks RSI is set at 46.03 for Phillips 66 [PSX]. The present Moving Average for the last 50 days of trading for this stock 86.17, while it was recorded at 90.26 for the last single week of trading, and 85.23 for the last 200 days.
Phillips 66 [PSX]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Phillips 66 [PSX] shares currently have an operating margin of +1.09 and a Gross Margin at +3.02. Phillips 66’s Net Margin is presently recorded at +1.17.
Return on Equity for this stock inclined to 6.85, with Return on Assets sitting at 2.37.
Phillips 66’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 1.30.
Phillips 66 [PSX]: An earnings per share (EPS) analysis
The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PSX. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Phillips 66 go to 6.30%.
An analysis of insider ownership at Phillips 66 [PSX]
There are presently around $30,221 million, or 73.70% of PSX stock, in the hands of institutional investors. The top three institutional holders of PSX stocks are: VANGUARD GROUP INC with ownership of 49,677,981, which is approximately 8.152% of the company’s market cap and around 0.30% of the total institutional ownership; BLACKROCK INC., holding 37,755,681 shares of the stock with an approximate value of $3.26 billion in PSX stocks shares; and STATE STREET CORP, currently with $2.82 billion in PSX stock with ownership of nearly 2.685% of the company’s market capitalization.
Positions in Phillips 66 stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 739 institutional holders increased their position in Phillips 66 [NYSE:PSX] by around 31,351,430 shares. Additionally, 586 investors decreased positions by around 18,906,826 shares, while 252 investors held positions by with 299,807,763 shares. The mentioned changes placed institutional holdings at 350,066,019 shares, according to the latest SEC report filing. PSX stock had 126 new institutional investments in for a total of 2,390,615 shares, while 119 institutional investors sold positions of 3,946,419 shares during the same period.