Shares of Sunoco LP (NYSE: SUN) have been rated with an average recommendation of “Moderate Buy” by eight brokerages currently covering the stock, according to data from MarketBeat.com. The consensus includes one analyst with a sell rating, another with a hold rating, and six others recommending a buy. The average price target for Sunoco shares over the next year stands at approximately $64.83.
Analyst Ratings and Price Targets
The stock has recently attracted attention in various analyst reports. On November 17, 2023, Barclays reaffirmed an “overweight” rating for Sunoco, setting a price target of $57.00. Just a few days earlier, on November 4, 2023, Zacks Research downgraded Sunoco from a “hold” rating to a “strong sell” rating. Following this, on November 5, 2023, Raymond James Financial issued an “outperform” rating with a price target of $70.00. Meanwhile, Wells Fargo & Company set a price objective of $65.00 on October 29, 2023, also giving the stock an “overweight” rating.
This diverse range of opinions reflects the varying outlooks among analysts regarding Sunoco’s market performance.
Financial Performance Overview
Sunoco recently released its quarterly earnings data on November 5, 2023. The oil and gas company reported earnings per share (EPS) of $0.64, which fell short of analysts’ consensus estimates of $1.54 by $0.90. The company recorded a net margin of 2.02% and a return on equity of 10.57%. Revenue for the quarter was $6.03 billion, exceeding the consensus estimate of $5.59 billion. Notably, the company had earned a loss of $0.26 per share during the same quarter last year, indicating an improvement in revenue of 4.9% year-on-year. Analysts are projecting that Sunoco will achieve an EPS of $10.65 for the current year.
In addition to its earnings report, Sunoco recently announced a quarterly dividend, which was paid on November 19, 2023. Shareholders of record on October 30, 2023 received a dividend of $0.9202 per share, representing an annualized dividend of $3.68 and a dividend yield of 6.6%. This dividend marks an increase from the previous quarterly figure of $0.91. The company’s dividend payout ratio currently stands at 125.60%.
Institutional Trading Activity
Recent trading activity shows a number of institutional investors have been active in buying and selling shares of Sunoco. Notably, 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 $1.89 million. Similarly, Avantax Advisory Services Inc. raised its stake by 6.7%, owning 12,912 shares worth approximately $750,000 after purchasing additional shares. LPL Financial LLC also boosted its holdings by 3.9%, now owning 184,925 shares valued at $10.74 million. Institutional investors currently hold 24.29% of Sunoco’s stock.
Sunoco LP, alongside its subsidiaries, is engaged in the distribution and retail of motor fuels across the United States. The company operates through two segments: Fuel Distribution and Marketing, and All Other. The Fuel Distribution and Marketing segment sources motor fuel and other petroleum products from independent refiners and oil companies, supplying them to various retail and commercial customers.
As Sunoco navigates through these financial and market developments, analysts and investors alike will be keenly observing the company’s performance in the coming months.
