ExxonMobil (NYSE:XOM) Shares Up 2.5% - Still a Buy?

Key Points

• ExxonMobil shares rose 2.5% to $156.80 as higher oil prices, driven by U.S.-Iran tensions and uncertainty around the Strait of Hormuz, boosted expectations for upstream earnings and cash flow.
• Investors are focused on the company’s July 31 earnings report, with analysts raising profit and revenue estimates. ExxonMobil also continues to offer shareholder support through its 43-year dividend-growth streak, a 2.6% yield, and expected share repurchases.
• The outlook is mixed: Bank of America downgraded the stock to “neutral” with a $158 target, citing limited upside and premium valuation, while the broader analyst consensus remains “Moderate Buy” with an average target of $163.45.

ExxonMobil Corporation (NYSE:XOM - Get Free Report)'s stock price shot up 2.5% during trading on Wednesday . The company traded as high as $159.07 and last traded at $156.80. Approximately 14,562,046 shares changed hands during mid-day trading, a decline of 26% from the average session volume of 19,685,432 shares. The stock had previously closed at $153.04.

ExxonMobil News Roundup

Here are the key news stories impacting ExxonMobil this week:

• Positive Sentiment: Oil prices jumped after escalating U.S.-Iran tensions reduced expectations that the Strait of Hormuz would quickly reopen. Higher crude prices could improve ExxonMobil’s upstream earnings and cash flow, particularly if the disruption persists. Oil Prices Jump After U.S. and Iran Strikes Hit Hormuz Hopes
• Positive Sentiment: Investors are positioning ahead of ExxonMobil’s July 31 earnings report. Analysts have raised profit and revenue expectations, while recent coverage points to potentially stronger results from higher oil prices. ExxonMobil's Q2 Earnings on Deck
• Positive Sentiment: ExxonMobil’s shareholder-return profile remains a support: the company has increased its dividend for 43 consecutive years and is expected to continue a substantial annual share-repurchase program. The Single Biggest Reason to Buy Exxon Mobil Before July 31st
• Positive Sentiment: The company agreed to a carbon-capture and storage project with Williams supporting natural-gas processing in Louisiana, adding to ExxonMobil’s lower-carbon growth strategy and potential long-term revenue opportunities. ExxonMobil Agrees to New CCS Project with Williams
• Neutral Sentiment: ExxonMobil is being highlighted as a value stock and as one of the energy holdings disclosed by President Donald Trump. Those factors may attract attention, but the company’s operating results and oil prices remain more important to valuation. Why ExxonMobil Is a Strong Value Stock
• Negative Sentiment: Bank of America downgraded XOM from “buy” to “neutral,” citing limited upside and setting a $158 price target. The downgrade could cap gains even as near-term oil prices and earnings expectations improve. Exxon Mobil Offers Limited Upside Potential
• Negative Sentiment: Analysts have also cautioned that ExxonMobil’s premium valuation leaves less room for error ahead of earnings, while broader energy-sector weakness could weigh on the shares if crude prices retreat. ExxonMobil's Q2 Earnings on Deck

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on XOM shares. Sanford C. Bernstein lowered their price target on ExxonMobil from $195.00 to $182.00 and set an "outperform" rating on the stock in a report on Monday, May 11th. TD Cowen cut their price objective on ExxonMobil from $172.00 to $155.00 and set a "buy" rating for the company in a report on Thursday, July 2nd. Jefferies Financial Group upped their price objective on ExxonMobil from $178.00 to $184.00 and gave the company a "buy" rating in a research report on Thursday, April 9th. JPMorgan Chase & Co. increased their target price on ExxonMobil from $140.00 to $170.00 and gave the company an "overweight" rating in a report on Thursday, April 9th. Finally, Weiss Ratings cut ExxonMobil from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, May 21st. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $163.45.

ExxonMobil Stock Performance

The business has a 50-day simple moving average of $145.60 and a 200 day simple moving average of $148.08. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.04 and a quick ratio of 0.77. The firm has a market cap of $649.93 billion, a PE ratio of 26.44, a PEG ratio of 0.63 and a beta of 0.17.

ExxonMobil (NYSE:XOM - Get Free Report) last posted its quarterly earnings data on Friday, May 1st. The oil and gas company reported $1.16 earnings per share for the quarter, beating analysts' consensus estimates of $0.98 by $0.18. ExxonMobil had a return on equity of 10.24% and a net margin of 7.57%.The firm had revenue of $83.16 billion for the quarter, compared to analysts' expectations of $81.13 billion. During the same period in the previous year, the firm earned $1.76 EPS. The business's quarterly revenue was up 2.4% on a year-over-year basis. Equities research analysts forecast that ExxonMobil Corporation will post 11.55 EPS for the current year.

ExxonMobil Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Friday, May 15th were given a $1.03 dividend. This represents a $4.12 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date was Friday, May 15th. ExxonMobil's dividend payout ratio is presently 69.48%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of XOM. Berbice Capital Management LLC bought a new position in shares of ExxonMobil in the fourth quarter worth about $26,000. Midwest Capital Advisors LLC purchased a new stake in shares of ExxonMobil during the fourth quarter worth about $27,000. E Fund Management Hong Kong Co. Ltd. raised its stake in ExxonMobil by 456.1% during the 4th quarter. E Fund Management Hong Kong Co. Ltd. now owns 228 shares of the oil and gas company's stock valued at $27,000 after purchasing an additional 187 shares during the period. Aventus Investment Advisors Inc. bought a new stake in ExxonMobil during the 2nd quarter valued at approximately $27,000. Finally, Key Capital Management INC purchased a new position in ExxonMobil in the 4th quarter worth approximately $28,000. Hedge funds and other institutional investors own 61.80% of the company's stock.

ExxonMobil Company Profile

ExxonMobil Corporation NYSE: XOM is an integrated oil and gas company engaged in the exploration, production, refining, distribution and marketing of petroleum products and the manufacture and sale of petrochemicals. Its operations span the full energy value chain, including upstream exploration and development of crude oil and natural gas; midstream transportation and storage; and downstream refining, product distribution and retail. The company also produces a broad range of chemical products for industrial and consumer applications.

ExxonMobil markets fuels and lubricants under well-known brands such as Exxon, Mobil and Esso, and its Mobil 1 motor oil is a prominent consumer product.

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