Trade Tracker: Josh Brown buys Phillips 66

Core Viewpoint - Philip 66 (PSX) is seen as a potential investment opportunity despite its current underperformance compared to peers like Marathon and Valero, with expectations of a breakout in stock price driven by insider buying and activist involvement [1][4][10]. Company Insights - Philip 66 is one of the three largest companies in the refining sector but has not yet experienced a breakout like its competitors [2]. - Recent insider buying, including a $1 million purchase by a board director, indicates confidence in the company's future [4]. - Activist investor Elliott Management has taken two board seats and believes Philip 66 should be valued at $200 per share, suggesting a significant upside potential [4][10]. Market Position and Strategy - The company has been diversifying into chemicals and LNG, moving away from its traditional refining focus, which has created ideological tension with Elliott Management [9][10]. - A recent acquisition of the remaining 50% stake in WRB refining suggests a potential shift back towards a focus on downstream operations, aligning with Elliott's vision [10]. Performance Metrics - The stock is currently trading below its 200-day moving average, with a suggested risk management level at $120, which is also where the stock bottomed in August [5]. - The company offers a 3.5% dividend yield, providing some income while investors wait for potential price appreciation [10].