ExxonMobil Sees Unusually Large Options Volume (NYSE:XOM)

Key Points

• ExxonMobil saw unusually heavy options activity on Thursday, with investors buying 413,969 call options, nearly 198% above the usual daily volume. That suggests traders were positioning for further upside in XOM.
• The stock edged higher and beat earnings estimates, rising 0.7% to $152.58 as Exxon reported Q1 EPS of $1.16 versus the $0.98 consensus and revenue of $83.16 billion, also above expectations.
• ExxonMobil reaffirmed its shareholder payout appeal by announcing a quarterly dividend of $1.03 per share, or $4.12 annualized, for a yield of about 2.7%. The company also continues to receive mostly Buy ratings from analysts, with a consensus view of Moderate Buy.

ExxonMobil Corporation (NYSE:XOM - Get Free Report) was the recipient of some unusual options trading on Thursday. Stock investors acquired 413,969 call options on the company. This is an increase of approximately 198% compared to the typical daily volume of 139,113 call options.

ExxonMobil Trading Up 0.7%

NYSE:XOM traded up $1.01 during trading hours on Thursday, hitting $152.58. 11,239,861 shares of the company were exchanged, compared to its average volume of 21,271,541. The stock has a market capitalization of $632.42 billion, a price-to-earnings ratio of 25.73, a price-to-earnings-growth ratio of 0.66 and a beta of 0.19. The company has a current ratio of 1.04, a quick ratio of 0.77 and a debt-to-equity ratio of 0.13. ExxonMobil has a one year low of $101.18 and a one year high of $176.41. The company has a fifty day simple moving average of $154.87 and a 200 day simple moving average of $137.05.

ExxonMobil (NYSE:XOM - Get Free Report) last announced its earnings results on Friday, May 1st. The oil and gas company reported $1.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.98 by $0.18. The business had revenue of $83.16 billion during the quarter, compared to analyst estimates of $81.13 billion. ExxonMobil had a return on equity of 10.24% and a net margin of 7.57%.ExxonMobil's revenue for the quarter was up 2.4% compared to the same quarter last year. During the same period last year, the company earned $1.76 EPS. Sell-side analysts expect that ExxonMobil will post 11.5 EPS for the current fiscal year.

ExxonMobil Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Investors of record on Friday, May 15th will be given a dividend of $1.03 per share. This represents a $4.12 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Friday, May 15th. ExxonMobil's dividend payout ratio (DPR) is currently 69.48%.

Key Stories Impacting ExxonMobil

Here are the key news stories impacting ExxonMobil this week:

• Positive Sentiment: Investors piled into ExxonMobil call options, with call volume surging well above normal. That kind of activity often signals traders are betting on more upside in XOM shares. ExxonMobil unusual options trading activity
• Positive Sentiment: Energy stocks are benefiting from a stronger oil-price narrative, including concerns that geopolitical tensions could keep supply tight and support crude prices. That is generally favorable for integrated oil producers like ExxonMobil. Energy sector demand and oil supply headlines
• Positive Sentiment: Market commentary pointed to a dislocation in the oil market that could create an arbitrage opportunity and support sector gains, including for ExxonMobil. The Great SPR Arbitrage article
• Neutral Sentiment: ExxonMobil announced that Senior Vice President Neil Chapman will speak at Bernstein’s Strategic Decisions Conference later this month. This is a routine investor-relations update, but it can keep the company in focus with analysts and institutions. ExxonMobil to Speak at Bernstein 42nd Annual Strategic Decisions Conference
• Negative Sentiment: Proxy advisory firms reportedly recommended that shareholders vote against some Exxon board positions, including its plan to redomicile in Texas. While not an immediate earnings issue, governance pushback can add overhang ahead of the annual meeting. Exxon, Chevron face dissent from proxy firms ahead of annual meetings

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on XOM. Zacks Research upgraded ExxonMobil from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, April 21st. BMO Capital Markets reiterated a "market perform" rating and issued a $155.00 price target on shares of ExxonMobil in a research note on Wednesday, February 4th. Weiss Ratings reiterated a "hold (c+)" rating on shares of ExxonMobil in a research note on Friday, April 10th. UBS Group increased their price target on ExxonMobil from $171.00 to $174.00 and gave the company a "buy" rating in a research note on Monday, May 4th. Finally, Jefferies Financial Group increased their price target on ExxonMobil from $178.00 to $184.00 and gave the company a "buy" rating in a research note on Thursday, April 9th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $163.95.

Insider Buying and Selling at ExxonMobil

In other ExxonMobil news, VP Darrin L. Talley sold 1,080 shares of the firm's stock in a transaction on Monday, March 16th. The stock was sold at an average price of $155.50, for a total value of $167,940.00. Following the sale, the vice president owned 17,124 shares of the company's stock, valued at approximately $2,662,782. This trade represents a 5.93% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.03% of the company's stock.

Institutional Trading of ExxonMobil

A number of large investors have recently bought and sold shares of XOM. Eagle Capital Management LLC grew its holdings in ExxonMobil by 15.3% during the 1st quarter. Eagle Capital Management LLC now owns 2,836 shares of the oil and gas company's stock worth $337,000 after acquiring an additional 376 shares during the period. Caxton Associates LLP acquired a new stake in ExxonMobil during the 1st quarter worth about $305,000. Sivia Capital Partners LLC grew its holdings in ExxonMobil by 1.9% during the 2nd quarter. Sivia Capital Partners LLC now owns 11,237 shares of the oil and gas company's stock worth $1,211,000 after acquiring an additional 207 shares during the period. United Bank grew its holdings in ExxonMobil by 2.8% during the 2nd quarter. United Bank now owns 21,821 shares of the oil and gas company's stock worth $2,352,000 after acquiring an additional 600 shares during the period. Finally, Schnieders Capital Management LLC. grew its holdings in ExxonMobil by 17.4% during the 2nd quarter. Schnieders Capital Management LLC. now owns 36,710 shares of the oil and gas company's stock worth $3,957,000 after acquiring an additional 5,443 shares during the period. 61.80% of the stock is currently owned by institutional investors and hedge funds.

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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