ExxonMobil (NYSE:XOM) Trading Down 1.3% - Should You Sell?

Key Points

• ExxonMobil shares fell 1.3% to approximately $152.88 amid heavier-than-usual trading, with analyst downgrades and a slight earnings miss contributing to near-term selling pressure.
• Quarterly EPS came in at $3.52 versus the $3.56 consensus, though revenue beat estimates and earnings more than doubled year over year. The company also raised its quarterly dividend to $1.03, representing a 2.7% annualized yield.
• Operational trends remain supportive, including record Permian production, resilient cash flow, strong refining performance and expected Guyana cash-flow growth. Analysts maintain a consensus “Hold” rating with an average price target of $163.29.

ExxonMobil Corporation (NYSE:XOM - Get Free Report) shares were down 1.3% during mid-day trading on Friday . The company traded as low as $151.53 and last traded at $152.8770. 16,484,074 shares were traded during mid-day trading, a decline of 15% from the average session volume of 19,377,838 shares. The stock had previously closed at $154.84.

ExxonMobil News Summary

Here are the key news stories impacting ExxonMobil this week:

• Positive Sentiment: ExxonMobil highlighted resilient second-quarter cash flow, record Permian production, solid refining performance despite disruptions and an expected free-cash-flow inflection from Guyana. These trends support the company’s production growth and shareholder-return outlook. XOM Q2 Earnings Call Highlights Refining Strength and Guyana Cash Flow
• Positive Sentiment: The company’s dividend increased during the second quarter, reinforcing ExxonMobil’s appeal to income-focused investors even though profit per share fell slightly short of expectations. Exxon's Profit Fell Short. Its Dividend Didn't.
• Positive Sentiment: ExxonMobil’s Mozambique unit issued McDermott a letter of intent for limited engineering and procurement work on the Rovuma LNG Phase 1 project. The award signals progress on a potentially important future growth asset, although it is not yet a full project contract. ExxonMobil in Mozambique Awards McDermott Letter of Intent for Rovuma LNG Project
• Neutral Sentiment: ExxonMobil has reportedly linked a potential $80 billion expansion of Kazakhstan’s Kashagan oil field to resolving a major dispute with the government and international companies. The opportunity is substantial, but its conditional nature makes the timing and investment uncertain. Exxon Links New $80 Billion Kazakh Oil Venture to Ending Dispute
• Negative Sentiment: ExxonMobil reported quarterly EPS of $3.52, narrowly below the $3.56 consensus estimate. Although revenue exceeded expectations and earnings improved substantially year over year, the profit miss may have encouraged near-term selling. Exxon's Profit Fell Short. Its Dividend Didn't.
• Negative Sentiment: Analyst rating actions from DZ Bank and another analyst have added pressure to XOM shares, signaling concerns about valuation or near-term energy-sector risks despite the company’s strong operating results. ExxonMobil Shares Down on Analyst Downgrade

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on XOM shares. Barclays increased their price target on ExxonMobil from $163.00 to $182.00 and gave the company an "overweight" rating in a research note on Tuesday, May 26th. Weiss Ratings raised shares of ExxonMobil from a "hold (c)" rating to a "buy (b-)" rating in a research report on Tuesday. Sanford C. Bernstein dropped their price objective on shares of ExxonMobil from $195.00 to $182.00 and set an "outperform" rating on the stock in a research report on Monday, May 11th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $180.00 target price on shares of ExxonMobil in a report on Tuesday, May 5th. Finally, HSBC set a $158.00 price target on shares of ExxonMobil in a report on Monday. Ten research analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, ExxonMobil has an average rating of "Hold" and a consensus target price of $163.29.

ExxonMobil Price Performance

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 company's 50 day moving average is $145.97 and its 200 day moving average is $149.48. The firm has a market capitalization of $633.67 billion, a price-to-earnings ratio of 19.68, a P/E/G ratio of 0.60 and a beta of 0.17.

ExxonMobil (NYSE:XOM - Get Free Report) last issued its quarterly earnings data 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 business had revenue of $114.53 billion during the quarter, compared to analyst estimates of $109.94 billion. ExxonMobil had a return on equity of 13.14% and a net margin of 8.88%.During the same quarter last year, the firm earned $1.64 EPS. On average, equities research analysts anticipate that ExxonMobil Corporation will post 11.72 earnings per share for the current fiscal year.

ExxonMobil Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 17th will be given a $1.03 dividend. This represents a $4.12 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Monday, August 17th. ExxonMobil's payout ratio is presently 53.02%.

Institutional Investors Weigh In On ExxonMobil

Large investors have recently added to or reduced their stakes in the stock. Aventus Investment Advisors Inc. acquired a new stake in shares of ExxonMobil during the 2nd quarter worth $27,000. Portus Wealth Advisors LLC acquired a new position in ExxonMobil in the first quarter valued at about $36,000. Berbice Capital Management LLC bought a new stake in ExxonMobil during the fourth quarter worth about $26,000. Midwest Capital Advisors LLC bought a new stake in ExxonMobil during the fourth quarter worth about $27,000. Finally, E Fund Management Hong Kong Co. Ltd. grew its stake 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 buying an additional 187 shares in the last quarter. Institutional investors and hedge funds own 61.80% of the company's stock.

About ExxonMobil

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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