ExxonMobil (NYSE:XOM) Stock Jumps 1.2% - Still a Buy?

Key Points

• ExxonMobil shares rose 1.2% to $174.25, supported by the prospect of crude prices above $90 benefiting its low-cost Permian Basin and Guyana operations.
• The company delivered strong quarterly results, with adjusted earnings increasing to $14.7 billion, though reported EPS of $3.52 slightly missed estimates. Analysts remain cautious, with a consensus “Hold” rating and average price target of $164.78.
• Key risks include valuation pressure as earnings are expected to decline, sensitivity to lower oil prices, and uncertainty surrounding Guyana’s LNG plans; ExxonMobil continues to pay a $1.03 quarterly dividend, yielding about 2.4%.

ExxonMobil Corporation (NYSE:XOM - Get Free Report) shot up 1.2% on Tuesday. The company traded as high as $174.89 and last traded at $174.25. 11,376,525 shares were traded during trading, a decline of 37% from the average daily volume of 18,041,188 shares. The stock had previously closed at $172.15.

Trending Headlines about ExxonMobil

Here are the key news stories impacting ExxonMobil this week:

• Positive Sentiment: Crude prices above $90 per barrel could materially benefit ExxonMobil’s earnings and cash generation. The company’s low-cost production assets in the Permian Basin and Guyana provide significant operating leverage to higher oil prices. Will Elevated Crude Prices Enhance ExxonMobil's Cash Flows?
• Positive Sentiment: Recent market coverage highlighted ExxonMobil’s strong second-quarter performance, with adjusted earnings rising to $14.7 billion from $8.8 billion in the first quarter despite Middle East disruptions. This reinforces the company’s ability to capitalize on volatile energy markets. ExxonMobil Trades at a Premium Yet Earnings Are Expected to Shrink
• Neutral Sentiment: Port Houston will present ExxonMobil with its Lone Star Award for its longstanding partnership and role in the Houston Ship Channel. The recognition supports the company’s reputation but is unlikely to have a meaningful near-term financial effect. ExxonMobil to Receive Port Houston's Lone Star Award
• Neutral Sentiment: Guyana may scale back LNG plans because ExxonMobil requires more natural gas for its own wells. The development could alter the timing and economics of future Guyana projects, though the immediate impact remains uncertain. Guyana May Scale Back LNG Plans
• Negative Sentiment: ExxonMobil is trading at a premium while analysts expect earnings to shrink, increasing the risk that the stock’s strong run has already priced in much of the bullish oil outlook. ExxonMobil Trades at a Premium Yet Earnings Are Expected to Shrink
• Negative Sentiment: Sliding oil prices previously reduced quarterly free cash flow by 61%, raising questions about how easily ExxonMobil can sustain its 43-year record of annual dividend increases if commodity prices weaken. Exxon's Dividend Streak Faces a Test

Analyst Ratings Changes

A number of equities analysts have recently issued reports on XOM shares. JPMorgan Chase & Co. upped their price objective on ExxonMobil from $158.00 to $166.00 and gave the stock an "overweight" rating in a report on Monday, August 3rd. Morgan Stanley raised their price objective on ExxonMobil from $168.00 to $177.00 and gave the company an "overweight" rating in a report on Wednesday, August 19th. Barclays dropped their target price on ExxonMobil from $182.00 to $177.00 and set an "overweight" rating for the company in a research report on Monday, August 17th. BNP Paribas Exane cut their target price on ExxonMobil from $165.00 to $155.00 and set a "neutral" rating for the company in a research note on Friday, July 17th. Finally, The Goldman Sachs Group increased their price target on shares of ExxonMobil from $168.00 to $169.00 and gave the company a "neutral" rating in a research report on Tuesday, September 22nd. Eleven equities research analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, ExxonMobil presently has an average rating of "Hold" and a consensus target price of $164.78.

ExxonMobil Trading Up 1.2%

The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.85 and a current ratio of 1.13. The firm has a 50-day moving average of $162.00 and a 200-day moving average of $154.23. The firm has a market capitalization of $722.26 billion, a P/E ratio of 22.43, a price-to-earnings-growth ratio of 0.99 and a beta of 0.21.

ExxonMobil (NYSE:XOM - Get Free Report) last issued its earnings results on Friday, July 31st. The oil and gas company reported $3.52 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.56 by ($0.04). ExxonMobil had a return on equity of 13.14% and a net margin of 8.88%. The firm had revenue of $114.53 billion during the quarter, compared to the consensus estimate of $109.94 billion. During the same quarter in the prior year, the business posted $1.64 EPS. On average, equities research analysts anticipate that ExxonMobil Corporation will post 12.40 EPS for the current fiscal year.

ExxonMobil Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Monday, August 17th were issued a $1.03 dividend. The ex-dividend date was Monday, August 17th. This represents a $4.12 annualized dividend and a yield of 2.4%. ExxonMobil's dividend payout ratio is 53.02%.

Institutional Trading of ExxonMobil

Several large investors have recently bought and sold shares of XOM. GQG Partners LLC lifted 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 buying an additional 10,214,420 shares during the period. Quantum Portfolio Management LLC acquired a new position in shares of ExxonMobil in the 1st quarter valued at $965,932,000. Arrowstreet Capital Limited Partnership purchased a new position in ExxonMobil in the 1st quarter worth $766,345,000. Diamant Asset Management Inc. raised its stake in ExxonMobil by 17,312.4% in the 1st quarter. Diamant Asset Management Inc. now owns 2,183,864 shares of the oil and gas company's stock worth $370,514,000 after acquiring an additional 2,171,322 shares during the last quarter. Finally, Employees Provident Fund Board acquired a new stake in ExxonMobil during the 4th quarter worth about $238,970,000. 61.80% of the stock is owned by institutional investors.

ExxonMobil Company Profile

Exxon Mobil Corporation, commonly known as ExxonMobil, is an integrated energy company engaged in the exploration, development, production and sale of crude oil and natural gas. The company also manufactures and markets fuels, lubricants, petrochemicals and specialty products used in transportation, industrial and consumer applications.

ExxonMobil operates across the energy value chain through businesses that include upstream oil and natural gas production, refining and fuels marketing, chemical manufacturing, and lower-carbon solutions.

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