ExxonMobil (NYSE:XOM) Shares Climb 1.2% – Still a Buy?

ExxonMobil Corporation (NYSE:XOM) shot up 1.2% during trading on Tuesday. The company traded as high as $174.89 and last traded at $174.25. 11,376,525 shares were traded during mid-day trading, a decline of 37% from the average daily volume of 18,041,188 shares. The stock had previously closed at $172.15.

More ExxonMobil News

Here are the key news stories impacting ExxonMobil this week:

• Positive Sentiment: Crude prices above $90 per barrel could materially benefit ExxonMobil’s earnings and cash generation. The company’s low-cost production assets in the Permian Basin and Guyana provide significant operating leverage to higher oil prices. Will Elevated Crude Prices Enhance ExxonMobil’s Cash Flows?
• Positive Sentiment: Recent market coverage highlighted ExxonMobil’s strong second-quarter performance, with adjusted earnings rising to $14.7 billion from $8.8 billion in the first quarter despite Middle East disruptions. This reinforces the company’s ability to capitalize on volatile energy markets. ExxonMobil Trades at a Premium Yet Earnings Are Expected to Shrink
• Neutral Sentiment: Port Houston will present ExxonMobil with its Lone Star Award for its longstanding partnership and role in the Houston Ship Channel. The recognition supports the company’s reputation but is unlikely to have a meaningful near-term financial effect. ExxonMobil to Receive Port Houston’s Lone Star Award
• Neutral Sentiment: Guyana may scale back LNG plans because ExxonMobil requires more natural gas for its own wells. The development could alter the timing and economics of future Guyana projects, though the immediate impact remains uncertain. Guyana May Scale Back LNG Plans
• Negative Sentiment: ExxonMobil is trading at a premium while analysts expect earnings to shrink, increasing the risk that the stock’s strong run has already priced in much of the bullish oil outlook. ExxonMobil Trades at a Premium Yet Earnings Are Expected to Shrink
• Negative Sentiment: Sliding oil prices previously reduced quarterly free cash flow by 61%, raising questions about how easily ExxonMobil can sustain its 43-year record of annual dividend increases if commodity prices weaken. Exxon’s Dividend Streak Faces a Test

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on XOM. Mizuho reduced their price target on shares of ExxonMobil from $175.00 to $170.00 and set a “neutral” rating for the company in a research report on Thursday, July 9th. Wall Street Zen upgraded shares of ExxonMobil to a “hold” rating in a research note on Saturday, September 5th. Weiss Ratings raised shares of ExxonMobil from a “buy (b-)” rating to a “buy (b)” rating in a report on Tuesday, September 29th. Bank of America lowered shares of ExxonMobil from a “buy” rating to a “neutral” rating and increased their price objective for the stock from $154.00 to $158.00 in a research note on Tuesday, July 28th. Finally, The Goldman Sachs Group raised their target price on shares of ExxonMobil from $168.00 to $169.00 and gave the stock a “neutral” rating in a report on Tuesday, September 22nd. Eleven investment analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $164.78.

ExxonMobil Stock Up 1.2%

The company has a quick ratio of 0.85, a current ratio of 1.13 and a debt-to-equity ratio of 0.12. The stock has a market cap of $722.26 billion, a PE ratio of 22.43, a P/E/G ratio of 0.99 and a beta of 0.21. The business has a 50 day moving average price of $162.00 and a 200 day moving average price of $154.23.

ExxonMobil (NYSE:XOM) last announced its quarterly earnings results on Friday, July 31st. The oil and gas company reported $3.52 earnings per share for the quarter, missing the consensus estimate of $3.56 by ($0.04). The company had revenue of $114.53 billion for the quarter, compared to analysts’ expectations of $109.94 billion. ExxonMobil had a net margin of 8.88% and a return on equity of 13.14%. During the same quarter in the prior year, the business posted $1.64 earnings per share. Equities research analysts expect that ExxonMobil Corporation will post 12.40 EPS for the current fiscal year.

ExxonMobil Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 17th were paid a dividend of $1.03 per share. The ex-dividend date of this dividend was Monday, August 17th. This represents a $4.12 dividend on an annualized basis and a dividend yield of 2.4%. ExxonMobil’s dividend payout ratio (DPR) is presently 53.02%.

Hedge Funds Weigh In On ExxonMobil

Several large investors have recently made changes to their positions in XOM. Dimensional Fund Advisors LP boosted its stake in shares of ExxonMobil by 5.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 28,364,314 shares of the oil and gas company’s stock worth $4,812,790,000 after acquiring an additional 1,540,902 shares in the last quarter. Amundi increased its stake in shares of ExxonMobil by 5.1% in the 1st quarter. Amundi now owns 24,511,156 shares of the oil and gas company’s stock valued at $4,158,563,000 after purchasing an additional 1,192,386 shares in the last quarter. GQG Partners LLC raised its holdings in ExxonMobil by 153.3% in the 2nd quarter. GQG Partners LLC now owns 16,877,523 shares of the oil and gas company’s stock worth $2,307,497,000 after purchasing an additional 10,214,420 shares during the period. Swiss National Bank raised its holdings in ExxonMobil by 5.9% in the 1st quarter. Swiss National Bank now owns 12,376,418 shares of the oil and gas company’s stock worth $2,099,783,000 after purchasing an additional 693,800 shares during the period. Finally, Invesco Ltd. boosted its position in ExxonMobil by 3.4% during the fourth quarter. Invesco Ltd. now owns 17,367,358 shares of the oil and gas company’s stock worth $2,089,988,000 after purchasing an additional 577,181 shares in the last quarter. 61.80% of the stock is currently owned by institutional investors and hedge funds.

ExxonMobil Company Profile

Exxon Mobil Corporation, commonly known as ExxonMobil, is an integrated energy company engaged in the exploration, development, production and sale of crude oil and natural gas. The company also manufactures and markets fuels, lubricants, petrochemicals and specialty products used in transportation, industrial and consumer applications.

ExxonMobil operates across the energy value chain through businesses that include upstream oil and natural gas production, refining and fuels marketing, chemical manufacturing, and lower-carbon solutions.