ENI (NYSE:E) Sets New 52-Week High - Should You Buy?

Key Points

• ENI shares reached a new 52-week high of $61.25 after the company reported quarterly EPS of $2.25 and revenue of $29.49 billion, both well above analyst expectations.
• Eni increased shareholder returns by announcing an extraordinary dividend and expanding its buyback program, while its quarterly dividend rose to $0.6335, implying a 4.1% annualized yield.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating, although the average price target of $58.45 is below the current share price; a potential sale of a stake in Eni’s Libya business could provide additional cash.

Eni SpA (NYSE:E - Get Free Report)'s share price hit a new 52-week high on Friday. The company traded as high as $61.25 and last traded at $61.2320, with a volume of 25,669 shares changing hands. The stock had previously closed at $59.53.

ENI News Roundup

Here are the key news stories impacting ENI this week:

• Positive Sentiment: Strong earnings beat: Eni reported quarterly earnings of $2.25 per share, well above the $1.87 consensus estimate. Revenue reached $29.49 billion versus expectations of $25.89 billion, while profit reportedly more than doubled year over year, helped by strong refining margins. Eni earnings press release Italian energy giant Eni sees profits soar
• Positive Sentiment: Larger shareholder returns: Eni announced an extraordinary dividend and an increase in its share-buyback program after generating approximately €6.4 billion in nine-month profit. Higher payouts make the stock more attractive to income-focused investors and signal confidence in cash-flow generation. Eni to pay special dividend and lift buyback Eni raises investor payouts
• Positive Sentiment: Potential asset monetization: ADNOC’s XRG is reportedly discussing the purchase of a stake in Eni’s Libya oil-and-gas business. A transaction could provide cash and validate the value of Eni’s upstream portfolio, although terms have not been finalized. ADNOC XRG talks to buy stake in Eni Libya business
• Neutral Sentiment: Eni also began start-up activities for the second phase of the Meleiha gas project in Egypt and discussed possible overseas projects with SOCAR, adding longer-term growth opportunities but with limited immediate earnings impact. Eni initiates Meleiha phase two

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. Weiss Ratings upgraded shares of ENI from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, October 8th. Erste Group Bank lowered ENI from a "buy" rating to a "hold" rating in a research note on Thursday, June 25th. UBS Group reissued a "buy" rating on shares of ENI in a report on Tuesday, October 6th. Wall Street Zen raised shares of ENI from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Finally, Royal Bank Of Canada restated a "neutral" rating on shares of ENI in a research report on Thursday, September 24th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and eight have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $58.45.

ENI Stock Up 3.5%

The firm has a market cap of $103.97 billion, a P/E ratio of 15.74, a P/E/G ratio of 0.22 and a beta of 0.44. The firm's fifty day moving average is $55.56 and its 200 day moving average is $53.60. The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.05 and a current ratio of 1.23.

ENI (NYSE:E - Get Free Report) last released its quarterly earnings results on Saturday, October 24th. The oil and gas exploration company reported $2.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.87 by $0.38. ENI had a return on equity of 11.27% and a net margin of 6.51%. The business had revenue of $29.49 billion during the quarter, compared to the consensus estimate of $25.89 billion. As a group, equities research analysts anticipate that Eni SpA will post 6.50 earnings per share for the current fiscal year.

ENI Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, December 7th. Stockholders of record on Tuesday, November 24th will be given a $0.6335 dividend. This represents a $2.53 annualized dividend and a dividend yield of 4.1%. The ex-dividend date is Tuesday, November 24th. This is a boost from ENI's previous quarterly dividend of $0.6276. ENI's dividend payout ratio is presently 42.97%.

Hedge Funds Weigh In On ENI

A number of institutional investors have recently modified their holdings of E. IFP Advisors Inc raised its stake in ENI by 111.2% during the second quarter. IFP Advisors Inc now owns 659 shares of the oil and gas exploration company's stock worth $31,000 after acquiring an additional 347 shares in the last quarter. CoreCap Advisors LLC increased its holdings in ENI by 8,235.3% in the 3rd quarter. CoreCap Advisors LLC now owns 1,417 shares of the oil and gas exploration company's stock worth $77,000 after purchasing an additional 1,400 shares in the last quarter. Cassaday & Co Wealth Management LLC acquired a new stake in shares of ENI during the first quarter valued at about $85,000. EWA LLC bought a new stake in shares of ENI during the first quarter worth about $202,000. Finally, Empirical Financial Services LLC d.b.a. Empirical Wealth Management bought a new position in ENI in the 1st quarter valued at approximately $203,000. Institutional investors and hedge funds own 1.18% of the company's stock.

About ENI

Eni S.p.A. is an integrated energy company headquartered in Rome, Italy. Founded in 1953, the company operates across the energy value chain, with activities spanning exploration and production, natural gas, liquefied natural gas, refining, chemicals, and energy-related services.

Eni explores for and produces oil and natural gas in several regions, including Europe, Africa, the Middle East, Asia, and the Americas. Through its downstream businesses, the company processes and markets fuels, develops chemical products, and supplies natural gas and electricity.

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