ExxonMobil (NYSE:XOM) Shares Up 1.5% - Here's Why

Key Points

• ExxonMobil shares rose 1.5% to $161.16, supported by record oil production and revenue generated with lower capital spending, particularly from high-return assets such as the Permian Basin.
• The company’s balance sheet remains flexible, with debt representing roughly 13.7% of capitalization, enabling continued investment, dividends and share repurchases. ExxonMobil is also targeting LNG sales of 50 million tons by 2030 to diversify its earnings.
• Despite strong cash generation and a 2.6% dividend yield, analyst sentiment is mixed: the consensus rating is Hold with a $167.45 target price, while recent quarterly EPS slightly missed estimates even as revenue exceeded expectations.

Shares of ExxonMobil Corporation (NYSE:XOM - Get Free Report) were up 1.5% during trading on Wednesday . The stock traded as high as $162.12 and last traded at $161.16. Approximately 12,287,285 shares were traded during mid-day trading, a decline of 34% from the average daily volume of 18,578,527 shares. The stock had previously closed at $158.71.

More ExxonMobil News

Here are the key news stories impacting ExxonMobil this week:

• Positive Sentiment: ExxonMobil’s record oil production and revenue, achieved with lower capital spending, highlight the benefits of higher output from high-return assets such as the Permian Basin. Technology and efficiency gains are also helping the company operate through Middle East supply risks. ExxonMobil Delivers Record Oil Output and Revenue on Lower Spending
• Positive Sentiment: A debt-to-capitalization ratio of approximately 13.7% gives XOM substantial balance-sheet flexibility to withstand oil and gas price volatility while continuing capital investments, dividends and share repurchases. How ExxonMobil’s Balance Sheet Helps Navigate Oil Volatility
• Positive Sentiment: Strong cash generation is supporting both growth investments and shareholder returns, while management pursues its 2030 earnings and cash-flow targets. Can ExxonMobil Keep Rewarding Shareholders While Investing for Growth?
• Positive Sentiment: ExxonMobil’s plan to expand LNG sales toward 50 million tons by 2030 could provide a larger position in global natural-gas markets and diversify its earnings base. Exxon’s 2030 LNG Sales Target
• Neutral Sentiment: A prolonged Strait of Hormuz disruption could create significant oil-price upside for Exxon, but recent crude weakness and limited stock reaction show that investors may be discounting the likelihood or duration of such a scenario. If Hormuz Stays Shut, How High Can Exxon Go?
• Neutral Sentiment: Potential investment in Venezuela could add production opportunities, but regulatory, political and execution risks remain significant after ExxonMobil’s past exits from the country. Exxon Could Return to a Venezuelan Field
• Negative Sentiment: Analyst attention is increasingly focused on Chevron rather than ExxonMobil, while uncertainty about oil’s direction may limit near-term valuation expansion. Wall Street’s Preferred Energy Stock

Analyst Upgrades and Downgrades

Several research firms recently weighed in on XOM. Zacks Research lowered ExxonMobil from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 26th. Piper Sandler upped their price objective on shares of ExxonMobil from $158.00 to $185.00 and gave the stock a "neutral" rating in a research report on Thursday, September 3rd. Freedom Capital upgraded shares of ExxonMobil from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 4th. Barclays dropped their price target on ExxonMobil from $182.00 to $177.00 and set an "overweight" rating for the company in a research note on Monday, August 17th. Finally, Citigroup reaffirmed a "neutral" rating on shares of ExxonMobil in a report on Wednesday, July 8th. Ten investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $167.45.

ExxonMobil Stock Performance

The company has a current ratio of 1.13, a quick ratio of 0.85 and a debt-to-equity ratio of 0.12. The company has a 50-day moving average price of $158.76 and a two-hundred day moving average price of $153.38. The stock has a market capitalization of $668.00 billion, a P/E ratio of 20.74, a price-to-earnings-growth ratio of 0.97 and a beta of 0.18.

ExxonMobil (NYSE:XOM - Get Free Report) last announced 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). ExxonMobil had a net margin of 8.88% and a return on equity of 13.14%. The company had revenue of $114.53 billion for the quarter, compared to analyst estimates of $109.94 billion. During the same quarter in the prior year, the company posted $1.64 EPS. On average, equities analysts forecast that ExxonMobil Corporation will post 11.93 earnings per share for the current year.

ExxonMobil Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 17th were given a dividend of $1.03 per share. The ex-dividend date of this dividend was Monday, August 17th. This represents a $4.12 annualized dividend and a dividend yield of 2.6%. ExxonMobil's dividend payout ratio (DPR) is currently 53.02%.

Hedge Funds Weigh In On ExxonMobil

Several institutional investors have recently added to or reduced their stakes in the stock. Aventus Investment Advisors Inc. bought a new stake in ExxonMobil during the second quarter worth approximately $27,000. Keewaydin Investments LLC acquired a new position in shares of ExxonMobil in the 4th quarter worth $33,000. Portus Wealth Advisors LLC acquired a new stake in shares of ExxonMobil during the first quarter worth $36,000. Hyposwiss Advisors SA purchased a new position in ExxonMobil in the 4th quarter worth about $37,000. Finally, Atlantic Private Wealth LLC raised its holdings in ExxonMobil by 776.9% during the 1st quarter. Atlantic Private Wealth LLC now owns 228 shares of the oil and gas company's stock worth $39,000 after buying an additional 202 shares during the period. Institutional investors own 61.80% of the company's stock.

ExxonMobil Company Profile

Exxon Mobil Corporation, doing business as ExxonMobil, is an integrated energy company engaged in the exploration, development, production and marketing of crude oil and natural gas. Its upstream operations support oil and natural gas production in multiple regions worldwide, while its downstream businesses refine crude oil into fuels and other petroleum products for commercial, industrial and consumer markets.

Through its product solutions businesses, ExxonMobil manufactures and markets lubricants, specialty fluids, petroleum-derived products and chemical products, including commodity and performance chemicals used in packaging, automotive components, construction materials and other industrial applications.

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