ExxonMobil (NYSE:XOM) Stock Falls 1.2% - Time to Sell?

Key Points

• XOM fell 1.2% to about $177.50 in Tuesday trading, with volume 35% below its average.
• ExxonMobil beat third-quarter earnings expectations, and management raised the quarterly dividend 3.9% to $1.07 per share while expanding its share-repurchase authorization to $110 billion.
• Risks include valuation concerns and potential pressure on upstream earnings if oil prices weaken; analysts’ views are mixed, though the consensus rating is “Moderate Buy.”

ExxonMobil Corporation (NYSE:XOM - Get Free Report)'s share price dropped 1.2% on Tuesday. The company traded as low as $177.20 and last traded at $177.4990. 11,526,402 shares traded hands during trading, a decline of 35% from the average session volume of 17,667,977 shares. The stock had previously closed at $179.67.

ExxonMobil News Summary

Here are the key news stories impacting ExxonMobil this week:

• Positive Sentiment: ExxonMobil beat third-quarter earnings expectations, with revenue of $113.2 billion and net income of $15.4 billion. Strong refining performance and record downstream utilization helped underpin results. Article: How Investors Are Reacting To ExxonMobil Stock Earnings
• Positive Sentiment: Management raised its quarterly dividend 3.9% to $1.07 per share and increased its share-repurchase authorization to $110 billion, reinforcing the cash-return case for investors. Article: How Investors Are Reacting To ExxonMobil Stock Earnings
• Positive Sentiment: UBS raised its price target to $213 and maintained a Buy rating after the results. ExxonMobil also reportedly took a 50% stake in Mozambique LNG, adding to its longer-term growth opportunities. Article: ExxonMobil Stocks Decline 1.8% With Higher UBS Target Testing Cash-Return Durability Article: ExxonMobil Takes 50% Stake in Mozambique LNG
• Positive Sentiment: A Zacks technical analysis noted XOM moved above its 200-day moving average, which it views as a sign of improving longer-term momentum. Article: ExxonMobil Just Overtook the 200-Day Moving Average
• Negative Sentiment: Oil-market headlines are conflicting: President Trump suggested Iran wants peace and oil prices were falling, while U.S. officials reported strikes on Iranian territory. Uncertainty over crude prices could weigh on energy-sector sentiment and ExxonMobil’s upstream earnings. Article: The U.S. Has Been Striking Iran as Trump Talks Up a Deal
• Negative Sentiment: Some analysts flag valuation risk after XOM’s substantial run-up. A separate earnings analysis pointed to a sequential decline in adjusted upstream earnings, leaving results more exposed if crude prices soften. Article: ExxonMobil Stock Trades at a Premium Article: I Wouldn't Buy ExxonMobil at a Record High

Analyst Ratings Changes

XOM has been the subject of several analyst reports. Citigroup reissued a "neutral" rating and issued a $175.00 price target (up from $150.00) on shares of ExxonMobil in a report on Wednesday, July 8th. DZ Bank cut shares of ExxonMobil from a "buy" rating to a "hold" rating and set a $156.00 price target on the stock. in a report on Tuesday, August 4th. Wall Street Zen upgraded ExxonMobil from a "hold" rating to a "buy" rating in a research report on Saturday, October 24th. William Blair started coverage on ExxonMobil in a research note on Wednesday, October 28th. They set a "market perform" rating for the company. Finally, JPMorgan Chase & Co. lifted their price objective on ExxonMobil from $158.00 to $166.00 and gave the company an "overweight" rating in a research note on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and fourteen have given a Hold rating to the company's stock. According to MarketBeat, ExxonMobil has a consensus rating of "Moderate Buy" and a consensus target price of $168.70.

ExxonMobil Trading Down 1.2%

The stock's 50 day simple moving average is $168.06 and its 200 day simple moving average is $154.62. The firm has a market cap of $735.72 billion, a PE ratio of 18.24, a PEG ratio of 0.91 and a beta of 0.21. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.85 and a current ratio of 1.13.

ExxonMobil (NYSE:XOM - Get Free Report) last posted its quarterly earnings data on Friday, October 30th. The oil and gas company reported $4.23 earnings per share for the quarter, beating the consensus estimate of $4.12 by $0.11. ExxonMobil had a net margin of 8.88% and a return on equity of 13.14%. The firm had revenue of $110.50 billion for the quarter, compared to analysts' expectations of $104.89 billion. During the same quarter last year, the company posted $1.88 EPS. On average, sell-side analysts forecast that ExxonMobil Corporation will post 13.58 earnings per share for the current fiscal year.

ExxonMobil Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Monday, November 16th will be paid a $1.07 dividend. This is a boost from ExxonMobil's previous quarterly dividend of $1.03. This represents a $4.28 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Monday, November 16th. ExxonMobil's payout ratio is currently 42.34%.

Institutional Investors Weigh In On ExxonMobil

Several hedge funds have recently added to or reduced their stakes in XOM. Dimensional Fund Advisors LP boosted its stake in ExxonMobil by 5.7% in the first quarter. Dimensional Fund Advisors LP now owns 28,364,314 shares of the oil and gas company's stock worth $4,812,790,000 after buying an additional 1,540,902 shares in the last quarter. Amundi raised its stake in shares of ExxonMobil by 5.1% during the first quarter. Amundi now owns 24,511,156 shares of the oil and gas company's stock worth $4,158,563,000 after acquiring an additional 1,192,386 shares in the last quarter. GQG Partners LLC raised its stake in shares of ExxonMobil by 153.3% during the second quarter. GQG Partners LLC now owns 16,877,523 shares of the oil and gas company's stock worth $2,307,497,000 after acquiring an additional 10,214,420 shares in the last quarter. Swiss National Bank lifted its holdings in shares of ExxonMobil by 5.9% in the 1st quarter. Swiss National Bank now owns 12,376,418 shares of the oil and gas company's stock worth $2,099,783,000 after acquiring an additional 693,800 shares during the last quarter. Finally, National Pension Service lifted its holdings in shares of ExxonMobil by 1.8% in the 2nd quarter. National Pension Service now owns 9,664,021 shares of the oil and gas company's stock worth $1,321,265,000 after acquiring an additional 166,268 shares during the last quarter. Institutional investors own 61.80% of the company's stock.

About ExxonMobil

Exxon Mobil Corporation, doing business as ExxonMobil NYSE: XOM, is an integrated energy company engaged in the exploration, development, production, and sale of crude oil and natural gas. Its operations span the energy value chain, from resource development and refining to the marketing and distribution of fuels and other energy products.

Through its Energy Products segment, ExxonMobil manufactures and markets transportation fuels, lubricants, and other petroleum-based products. Its Chemical Products business produces petrochemicals, including commodity and performance products used in packaging, automotive components, construction materials, and consumer goods.

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