Phillips 66 (PSX): Insiders Aren’t Crazy About It But Hedge Funds Love It

Phillips 66 (NYSE:PSX) has seen mixed sentiment from two of the indicators we track. For all intents and purposes, let’s take a look at the details.

In the financial world, there are many methods market participants can use to watch Mr. Market. Some of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite money managers can outperform the S&P 500 by a very impressive margin (see just how much).

Just as key, positive insider trading sentiment is another way to analyze the stock market universe. Just as you’d expect, there are plenty of reasons for an upper level exec to cut shares of his or her company, but just one, very clear reason why they would behave bullishly. Several empirical studies have demonstrated the useful potential of this method if you know where to look (learn more here).

Furthermore, it’s important to examine the latest info surrounding Phillips 66 (NYSE:PSX).

How are hedge funds trading Phillips 66 (NYSE:PSX)?

At the end of the second quarter, a total of 50 of the hedge funds we track were long in this stock, a change of 4% from the first quarter. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were upping their stakes meaningfully.

Out of the hedge funds we follow, Berkshire Hathaway, managed by Warren Buffett, holds the most valuable position in Phillips 66 (NYSE:PSX). Berkshire Hathaway has a $1.6002 billion position in the stock, comprising 1.8% of its 13F portfolio. On Berkshire Hathaway’s heels is D E Shaw, managed by D. E. Shaw, which held a $208.4 million position; 0.4% of its 13F portfolio is allocated to the stock. Some other peers that hold long positions include Steven Richman’s East Side Capital (RR Partners), Larry Robbins’s Glenview Capital and Ken Griffin’s Citadel Investment Group.

As aggregate interest spiked, particular hedge funds were breaking ground themselves. Berkshire Hathaway, managed by Warren Buffett, created the biggest position in Phillips 66 (NYSE:PSX). Berkshire Hathaway had 1.6002 billion invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also made a $208.4 million investment in the stock during the quarter. The other funds with brand new PSX positions are Steven Richman’s East Side Capital (RR Partners), Larry Robbins’s Glenview Capital, and Ken Griffin’s Citadel Investment Group.

What do corporate executives and insiders think about Phillips 66 (NYSE:PSX)?

Legal insider trading, particularly when it’s bullish, is most useful when the company in question has experienced transactions within the past six months. Over the last six-month time frame, Phillips 66 (NYSE:PSX) has seen zero unique insiders buying, and 1 insider sales (see the details of insider trades here).

We’ll also take a look at the relationship between both of these indicators in other stocks similar to Phillips 66 (NYSE:PSX). These stocks are Marathon Oil Corporation (NYSE:MRO), Hess Corp. (NYSE:HES), Valero Energy Corporation (NYSE:VLO), Marathon Petroleum Corp (NYSE:MPC), and Imperial Oil Limited (USA) (NYSEAMEX:IMO). This group of stocks are in the oil & gas refining & marketing industry and their market caps are closest to PSX’s market cap.