There's an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy. Back on March 2, Phillips 66's Director, John E. Lowe, invested $378,155.50 into 5,000 shares of PSX, for a cost per share of $75.63. Bargain hunters tend to pay particular attention to insider buys like this one, because presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money. In trading on Monday, bargain hunters could buy shares of Phillips 66 (Symbol: PSX) and achieve a cost basis 18.7% cheaper than Lowe, with shares changing hands as low as $61.47 per share. Phillips 66 shares are currently trading down about 10.9% on the day. The chart below shows the one year performance of PSX shares, versus its 200 day moving average:
Looking at the chart above, PSX's low point in its 52 week range is $61.47 per share, with $119.92 as the 52 week high point — that compares with a last trade of $61.73. By comparison, below is a table showing the prices at which PSX insider buying was recorded over the last six months:
| Purchased | Insider | Title | Shares | Price/Share | Value |
|---|---|---|---|---|---|
| 03/02/2020 | John E. Lowe | Director | 5,000 | $75.63 | $378,155.50 |
The current annualized dividend paid by Phillips 66 is $3.6/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 02/14/2020. Below is a long-term dividend history chart for PSX, which can be of good help in judging whether the most recent dividend with approx. 5.2% annualized yield is likely to continue.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
