On October 1, 2023, Sunoco (NYSE:SUN) received a downgrade from analysts at Mizuho, who changed their rating from “buy” to “neutral.” This decision was outlined in a research note issued to investors on Friday, as reported by FlyOnTheWall.
With this news, shares of SUN opened at $51.29 on Friday. The company currently has a market capitalization of $5.15 billion and trades with a price-to-earnings ratio of 15.26 and a beta of 1.30. Sunoco’s stock performance over the past year shows that it reached a high of $51.85 and a low of $37.37.
Examining the company’s financial health, Sunoco has maintained a quick ratio of 0.77 and current ratio of 1.53, indicating its ability to meet short-term obligations efficiently. Additionally, Sunoco holds a debt-to-equity ratio of 3.67.
Taking into account the company’s recent data points, the stock has shown an average price for the past 50 days at $45.73 and an average price for the past 200 days at $44.57.
Sunoco LP is primarily engaged in fuel distribution and marketing within the United States through its subsidiaries. The company operates in two segments: Fuel Distribution and Marketing, and All Other. In the Fuel Distribution segment, Sunoco procures motor fuel from independent refiners as well as oil companies and distributes it to independently operated dealer stations, distributors, and other consumers through commission agent locations.
On August 2nd, Sunoco released its most recent earnings report for the quarter ending July 31st where they reported earnings per share (EPS) of $0.78—falling short of the consensus estimate by ($0.24). The company generated revenue of $5.75 billion during this period compared to analyst estimates of $5.66 billion. Sunoco’s net margin stood at 1.55%, and they achieved a return on equity of 37.36%. However, it’s worth noting that the company experienced a 26.5% decrease in quarterly revenue compared to the same period last year when they reported an EPS of $1.20.
Moving forward, research analysts predict that for the current fiscal year, Sunoco will post an EPS of 4.23.
As investors analyze these recent developments surrounding Sunoco, they may consider adjusting their investment strategies accordingly based on the new “neutral” rating from Mizuho and other relevant variables.
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Sunoco’s Stock Under Scrutiny as Analysts and Investors Assess Future Performance
On October 1, 2023, Sunoco, a prominent oil and gas company, found itself under the microscope of several research reports. One such report came from Barclays, who lowered their price objective on Sunoco’s stock from $51.00 to $50.00. Despite the reduction in price target, Barclays maintained an “overweight” rating for the company’s stock.
In another report by StockNews.com on September 8th, Sunoco’s shares were upgraded from a “hold” rating to a “buy” rating. This positive change reflected the confidence that analysts had in the company’s prospects.
Currently, three analysts have assigned a hold rating to Sunoco’s stock, while four have given it a buy rating. Bloomberg.com reports that the average rating for the company stands at “Moderate Buy,” with a consensus target price of $50.14.
Moving onto institutional investors, hedge funds and others have recently made significant adjustments to their holdings of Sunoco’s stock. Advisor Group Holdings Inc., for instance, increased its position in Sunoco by 3.6% during the fourth quarter. This move saw them acquire an additional 2,471 shares valued at $3.083 million.
Similarly, Tortoise Index Solutions LLC experienced growth in its holdings of Sunoco’s shares during the same period. They now own 66,687 shares worth approximately $7.856 million after purchasing an additional 14,768 shares.
LPL Financial LLC also decided to capitalize on Sunoco’s potential by expanding its stake in the company by 11.9% during the first quarter. With an additional 15,255 shares acquired at a value of $6.301 million, LPL Financial now owns 143,552 shares of Sunoco.
Another investor that entered into Sunoco during the first quarter was Valeo Financial Advisors LLC with an investment worth around $4.373 million.
Finally, Barnett & Company Inc. increased its position in Sunoco by a modest 0.8% during the first quarter by purchasing an additional 500 shares valued at $2.84 million.
Overall, institutional investors and hedge funds currently own approximately 17.62% of Sunoco’s stock.
As of October 1, 2023, Sunoco finds itself in the midst of various research reports and investment activities. While Barclays lowered its price objective, other analysts have expressed optimism by upgrading their ratings for the company’s shares. The changes in holdings made by institutional investors demonstrate their confidence in Sunoco’s future performance.
It remains to be seen how these developments will impact Sunoco’s stock price and whether it will meet the consensus target price of $50.14 as projected by Bloomberg.com.
