Investors Buy Large Volume of Shell Call Options (NYSE:SHEL)

Key Points

• Unusually high call-option activity: Investors bought 54,278 Shell call options, 469% above the typical volume of 9,541.
• Shell shares rose $0.74 to $98.61 on Thursday. The company reported quarterly EPS of $3.86, beating the $3.60 analyst consensus, while revenue came in slightly below estimates.
• Shell’s board authorized a $5 billion share buyback, covering up to 1.7% of shares. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $107.08.

Shell PLC Unsponsored ADR (NYSE:SHEL - Get Free Report) saw some unusual options trading on Thursday. Stock investors acquired 54,278 call options on the stock. This represents an increase of 469% compared to the typical volume of 9,541 call options.

Shell Stock Performance

Shares of SHEL stock traded up $0.74 on Thursday, hitting $98.61. 3,946,645 shares of the stock traded hands, compared to its average volume of 6,851,615. The company's fifty day moving average is $99.45 and its 200 day moving average is $89.25. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.38 and a quick ratio of 1.09. Shell has a 1-year low of $68.63 and a 1-year high of $109.37. The company has a market capitalization of $282.48 billion, a PE ratio of 8.56, a PEG ratio of 0.81 and a beta of 0.07.

Shell (NYSE:SHEL - Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The energy company reported $3.86 earnings per share for the quarter, beating analysts' consensus estimates of $3.60 by $0.26. Shell had a net margin of 9.96% and a return on equity of 16.86%. The business had revenue of $92.85 billion during the quarter, compared to the consensus estimate of $93.25 billion. On average, equities research analysts predict that Shell will post 12.46 earnings per share for the current fiscal year.

Shell declared that its board has approved a stock buyback plan on Thursday, October 29th that authorizes the company to repurchase $5 billion in shares. This buyback authorization authorizes the energy company to repurchase up to 1.7% of its shares through open market purchases. Share buyback plans are often a sign that the company's board believes its shares are undervalued.

Analysts Set New Price Targets

Several brokerages have recently issued reports on SHEL. TD Cowen boosted their price objective on shares of Shell from $107.00 to $115.00 and gave the company a "buy" rating in a research note on Monday, September 28th. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Shell in a research report on Monday, November 2nd. Morgan Stanley raised Shell from an "equal weight" rating to an "overweight" rating and boosted their price target for the company from $81.60 to $101.30 in a research report on Thursday, September 3rd. Wells Fargo & Company upped their price target on Shell from $105.00 to $116.00 and gave the stock an "equal weight" rating in a research note on Friday, October 30th. Finally, JPMorgan Chase & Co. restated a "buy" rating on shares of Shell in a report on Wednesday, October 21st. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $107.08.

Institutional Trading of Shell

Several hedge funds have recently made changes to their positions in SHEL. Bank of America Corp DE increased its position in Shell by 1.9% in the second quarter. Bank of America Corp DE now owns 7,709,715 shares of the energy company's stock worth $597,811,000 after buying an additional 146,988 shares during the period. WGI DM LLC boosted its holdings in shares of Shell by 1.5% during the third quarter. WGI DM LLC now owns 4,166,133 shares of the energy company's stock valued at $395,991,000 after acquiring an additional 59,935 shares during the period. Envestnet Asset Management Inc. grew its position in shares of Shell by 7.9% during the second quarter. Envestnet Asset Management Inc. now owns 2,352,694 shares of the energy company's stock worth $182,425,000 after acquiring an additional 171,873 shares during the last quarter. Boston Partners grew its position in shares of Shell by 11.6% during the third quarter. Boston Partners now owns 1,234,689 shares of the energy company's stock worth $117,392,000 after acquiring an additional 128,759 shares during the last quarter. Finally, First Eagle Investment Management LLC increased its holdings in shares of Shell by 4.9% in the 3rd quarter. First Eagle Investment Management LLC now owns 1,125,403 shares of the energy company's stock worth $106,970,000 after acquiring an additional 52,138 shares during the period. Institutional investors own 28.60% of the company's stock.

Shell Company Profile

Shell plc is a global energy company engaged in the exploration and production of oil and natural gas, natural gas liquefaction and marketing, and the refining and sale of fuels and other products. Its businesses also include chemicals, power and energy solutions, including lower-carbon offerings such as biofuels, hydrogen and electric-vehicle charging. The company serves customers and operates across regions worldwide. Its products and services reach consumers, businesses and industrial customers through activities such as fuel retailing, natural gas supply, chemicals production and energy trading.

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.