On September 12, 2023, Timothy Roberts, the Executive Vice President of Phillips 66 (PSX, Financial), sold 12,970 shares of the company. This move is part of a larger trend for Roberts, who over the past year has sold a total of 140,548 shares and purchased none.
Timothy Roberts is a key figure at Phillips 66, a diversified energy manufacturing and logistics company. With a variety of midstream, chemicals, refining, and marketing and specialties businesses, Phillips 66 is a powerhouse in the energy sector. The company processes, transports, stores and markets fuels and products globally, making it a crucial player in the global energy market.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there has been only one insider buy at Phillips 66, compared to nine insider sells. This could indicate a lack of confidence in the company's short-term prospects among its top executives.
On the day of the insider's recent sell, shares of Phillips 66 were trading for $124.41 apiece, giving the company a market cap of $54.91 billion. This is a significant figure, and it's worth noting that the insider's sell-off represents a small fraction of the company's total market cap.
The price-earnings ratio of Phillips 66 is 5.35, which is lower than the industry median of 9.15 and lower than the company’s historical median price-earnings ratio. This could suggest that the stock is undervalued, but other factors must be considered.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance, Phillips 66 is modestly overvalued. With a price of $124.41 and a GuruFocus Value of $111.33, the stock has a price-to-GF-Value ratio of 1.12.
In conclusion, the insider's recent sell-off, combined with the broader trend of insider sells at Phillips 66, could be a cause for concern for investors. However, the company's strong market cap and relatively low price-earnings ratio suggest that it remains a solid investment in the long term. As always, investors should conduct their own research and consider multiple factors before making investment decisions.
