ExxonMobil (NYSE:XOM) Trading 2.6% Higher - Should You Buy?

Key Points

• ExxonMobil shares rose 2.6% to $165.62 in mid-day trading, slightly above the analyst consensus price target of $163.05. Despite ten Buy ratings, 13 analysts rate the stock Hold, resulting in an overall consensus Hold rating.
• The company raised its quarterly dividend 4% to $1.03 per share, marking the 26th consecutive annual increase and implying a 2.5% yield. ExxonMobil’s latest quarter included $3.52 in EPS, slightly below estimates, but revenue of $114.53 billion exceeded expectations.
• Long-term growth initiatives are progressing, including $1.1 billion in Mozambique LNG pre-investment contracts and 20-year Permian Basin infrastructure agreements with Targa Resources. Potential oil-market disruptions tied to geopolitical tensions could support prices but also add volatility and uncertainty.

ExxonMobil Corporation (NYSE:XOM - Get Free Report)'s stock price was up 2.6% during mid-day trading on Tuesday . The company traded as high as $165.67 and last traded at $165.62. Approximately 18,917,816 shares were traded during mid-day trading, a decline of 1% from the average daily volume of 19,167,191 shares. The stock had previously closed at $161.46.

More ExxonMobil News

Here are the key news stories impacting ExxonMobil this week:

• Positive Sentiment: Dividend raised for the 26th consecutive year: ExxonMobil increased its quarterly dividend by 4% to $1.03 per share, reinforcing its income appeal and long-term shareholder-return record. Exxon Mobil Raises Dividend
• Positive Sentiment: Mozambique LNG moves forward: ExxonMobil awarded approximately $1.1 billion in pre-investment contracts for upstream equipment for the Rovuma LNG Phase 1 project. The spending signals progress toward developing a major long-term liquefied natural gas resource and expanding ExxonMobil’s future production portfolio. ExxonMobil Mozambique LNG Contracts
• Positive Sentiment: Permian growth receives infrastructure support: ExxonMobil signed 20-year agreements with Targa Resources for gathering, processing, NGL transportation and fractionation services across its Permian acreage. Targa plans three new processing plants with combined capacity of about 825 MMcf/d and the Bull Run II pipeline, supporting ExxonMobil’s expected production growth through 2046. Although the agreements primarily benefit Targa, they highlight ExxonMobil’s commitment to expanding its high-value Permian operations. Targa Resources ExxonMobil Agreements
• Neutral Sentiment: Oil-market geopolitics remain a potential tailwind and risk: Reports of escalating tensions involving Iran and disruption risks around the Strait of Hormuz could support crude prices and ExxonMobil’s upstream earnings, but uncertainty, demand impacts and volatile oil prices make the benefit difficult to quantify. Iran Conflict and Oil Stocks

Analysts Set New Price Targets

A number of research firms have weighed in on XOM. Piper Sandler started coverage on ExxonMobil in a research note on Thursday, July 23rd. They issued a "neutral" rating and a $158.00 price target for the company. TD Cowen increased their price objective on ExxonMobil from $155.00 to $168.00 and gave the company a "buy" rating in a report on Friday, August 7th. Citigroup reissued a "neutral" rating on shares of ExxonMobil in a research note on Wednesday, July 8th. Royal Bank Of Canada restated a "sector perform" rating and set a $180.00 target price on shares of ExxonMobil in a report on Tuesday, May 5th. Finally, Bank of America lowered shares of ExxonMobil from a "buy" rating to a "neutral" rating and upped their price target for the stock from $154.00 to $158.00 in a research report on Tuesday, July 28th. Ten analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the stock. According to data from MarketBeat.com, ExxonMobil currently has a consensus rating of "Hold" and a consensus price target of $163.05.

ExxonMobil Stock Up 2.6%

The stock has a market cap of $686.49 billion, a P/E ratio of 21.32, a price-to-earnings-growth ratio of 0.63 and a beta of 0.17. The firm has a 50 day simple moving average of $147.19 and a 200-day simple moving average of $150.73. The company has a quick ratio of 0.85, a current ratio of 1.13 and a debt-to-equity ratio of 0.12.

ExxonMobil (NYSE:XOM - Get Free Report) last issued its earnings results on Friday, July 31st. The oil and gas company reported $3.52 EPS for the quarter, missing the consensus estimate of $3.56 by ($0.04). ExxonMobil had a return on equity of 13.14% and a net margin of 8.88%.The business had revenue of $114.53 billion for the quarter, compared to the consensus estimate of $109.94 billion. During the same quarter in the prior year, the firm posted $1.64 earnings per share. On average, equities research analysts forecast that ExxonMobil Corporation will post 11.86 earnings per share for the current fiscal year.

ExxonMobil Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 17th will be issued a dividend of $1.03 per share. The ex-dividend date of this dividend is Monday, August 17th. This represents a $4.12 annualized dividend and a dividend yield of 2.5%. ExxonMobil's payout ratio is presently 53.02%.

Hedge Funds Weigh In On ExxonMobil

Institutional investors and hedge funds have recently made changes to their positions in the company. Berbice Capital Management LLC acquired a new stake in shares of ExxonMobil during the fourth quarter worth $26,000. Midwest Capital Advisors LLC bought a new position in ExxonMobil during the fourth quarter worth about $27,000. E Fund Management Hong Kong Co. Ltd. increased its position in ExxonMobil by 456.1% during the fourth quarter. E Fund Management Hong Kong Co. Ltd. now owns 228 shares of the oil and gas company's stock worth $27,000 after acquiring an additional 187 shares during the period. Aventus Investment Advisors Inc. acquired a new stake in ExxonMobil in the 2nd quarter worth about $27,000. Finally, Key Capital Management INC bought a new stake in ExxonMobil in the 4th quarter valued at about $28,000. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source