Wolfe Research Upgrades Phillips 66 to Outperform Rating

Analysts boost Phillips 66 rating to outperform. With a decrease in institutional ownership, the outlook remains cautiously optimistic.

Date: 04-01-2025

AI Rating: 5

Institutional Ownership Trends

The report highlights a decrease of 39 institutional owners or a 1.42% reduction in the number of funds reporting positions in Phillips 66 (PSXC) over the last quarter. This decline suggests a potential shift in sentiment among institutional investors, which could impact stock price as it reflects reduced confidence among large investors.

However, the average portfolio weight of funds dedicated to PSXC increased by 14.31%, indicating that those who remain invested see value in increasing their stakes. This could partially offset the decline in the number of holders.

Significant Decreases in Major Holders

Wells Fargo, a major institutional holder, reported a decrease of 2.89% in shares owned and a significant reduction in portfolio allocation of 71.82%. Similarly, Vanguard Total Stock Market Index Fund and the Energy Select Sector SPDR Fund also decreased their holdings. Such reductions among significant shareholders may raise concerns about the company's stability and could lead to negative sentiment in the market.

Meanwhile, there was an increase in holdings by Harris Associates L P (an increase of 13.76%) which could counterbalance some negative sentiment created by larger decreases. The overall performance and outlook of Phillips 66 may be affected by these mixed signals.

Conclusion

While Wolfe Research has upgraded Phillips 66 from Peer Perform to Outperform, the decrease in institutional ownership and significant reductions in key holders could create a cautious atmosphere among investors. The upgrade coupled with the mixture of retention and divestment may lead to volatility in the stock price as investors weigh the implications of these adjustments.

Stocks: PSXC