Analysts have set an average price target of $64.83 for shares of Sunoco LP (NYSE:SUN) as part of their assessments of the oil and gas company’s stock. Currently, eight brokerages are covering Sunoco, with a consensus recommendation of “Moderate Buy.” The ratings include one sell, one hold, and six buy recommendations, indicating a generally positive outlook despite some caution.
Several notable firm reports have emerged recently regarding Sunoco’s stock. On November 17, Barclays reaffirmed an “overweight” rating, setting a price target of $57.00. In contrast, Zacks Research downgraded the stock from a “hold” to a “strong sell” rating on November 4. Weiss Ratings maintained a “hold (C+)” rating on November 24, while Raymond James Financial reissued an “outperform” rating with a target of $70.00 on November 5. Additionally, Wells Fargo & Company set a price objective of $65.00 on October 29, reflecting their “overweight” stance.
Recent Earnings Results and Dividend Increase
Sunoco recently released its quarterly earnings data on November 5, reporting earnings per share (EPS) of $0.64. This figure fell short of analysts’ expectations, which had predicted an EPS of $1.54, marking a variance of $0.90. The company’s net margin stood at 2.02% with a return on equity of 10.57%. Despite the earnings miss, Sunoco reported revenues of $6.03 billion, exceeding the consensus estimate of $5.59 billion. Year-over-year, revenue increased by 4.9%, a notable improvement from the same quarter last year when the company recorded an EPS of ($0.26).
In addition to its earnings report, Sunoco announced a quarterly dividend of $0.9202 per share, which was paid on November 19. Stockholders on record as of October 30 received this dividend, representing an annualized dividend of $3.68 and a dividend yield of 6.6%. This increase marks a rise from the previous quarterly dividend of $0.91, although the company’s dividend payout ratio is currently at 125.60%.
Institutional Investment Activity
Recent trading activity reveals that several institutional investors have adjusted their positions in Sunoco. Bank of New York Mellon Corp acquired a new position in the first quarter, investing approximately $248,000. Envestnet Asset Management Inc. increased its stake by 6.0%, now holding 32,603 shares valued at around $1.89 million. Similarly, Avantax Advisory Services Inc. raised its position by 6.7%, owning 12,912 shares worth approximately $750,000 after additional purchases.
Other firms, such as LPL Financial LLC, expanded their holdings by 3.9%, now controlling 184,925 shares valued at about $10.74 million. Additionally, Sheaff Brock Investment Advisors LLC entered a new position valued at approximately $254,000. Currently, institutional investors hold 24.29% of Sunoco’s stock, reflecting a significant interest in the company.
Sunoco LP operates primarily in the fuel distribution and marketing sector, supplying motor fuels and petroleum products across the United States. The company’s ongoing performance and analyst ratings will be closely monitored as they navigate the challenging energy market landscape.
