ExxonMobil (NYSE:XOM) Stock Price Down 4.5% on Analyst Downgrade

Key Points

• ExxonMobil shares fell 4.5% to about $169.52 after DZ Bank downgraded the stock from Hold to Sell and set a $170 price target; trading volume was 42% above average.
• Analyst views are mixed: the stock has a consensus Hold rating and an average price target of $170.74, while Morgan Stanley and Barclays maintain Buy ratings with higher targets.
• ExxonMobil beat quarterly earnings and revenue estimates and raised its quarterly dividend from $1.03 to $1.07 per share.

ExxonMobil Corporation (NYSE:XOM - Get Free Report) shares fell 4.5% on Wednesday after DZ Bank downgraded the stock from a hold rating to a sell rating. DZ Bank now has a $170.00 price target on the stock. ExxonMobil traded as low as $167.39 and last traded at $169.5170. 25,170,445 shares were traded during trading, an increase of 42% from the average daily volume of 17,698,039 shares. The stock had previously closed at $177.46.

Other equities research analysts also recently issued reports about the company. Morgan Stanley raised their price target on ExxonMobil from $185.00 to $187.00 and gave the stock an "overweight" rating in a research note on Monday. Barclays increased their target price on shares of ExxonMobil from $177.00 to $200.00 and gave the company an "overweight" rating in a research note on Monday, October 19th. HSBC reissued a "hold" rating and issued a $90.00 target price on shares of ExxonMobil in a research note on Friday, September 25th. Argus boosted their target price on shares of ExxonMobil from $169.00 to $175.00 and gave the company a "buy" rating in a research note on Tuesday, August 11th. Finally, The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $178.00 price target on shares of ExxonMobil in a report on Tuesday, October 20th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $170.74.

Key ExxonMobil News

Here are the key news stories impacting ExxonMobil this week:

• Positive Sentiment: TD Cowen raised its price target to $193 from $180 and reiterated a Buy rating, signaling potential upside in the firm’s view. Tickerreport article
• Positive Sentiment: Exxon reported strong Q3 earnings, supported by refining performance and cost discipline, and highlighted cash returns through a higher dividend and a larger share-repurchase authorization. These results and capital returns may help underpin investor confidence. Earnings reaction article
• Positive Sentiment: Exxon plans to invest $10 billion in refining through 2030, including a diesel-output expansion intended to improve efficiency and cash generation. The potential benefit is longer term and depends on execution and refining margins. Diesel expansion article
• Neutral Sentiment: Reports noted continued dividend growth and strong cash generation, but also raised the question of whether the stock’s valuation already reflects much of its positive outlook. Valuation article
• Negative Sentiment: DZ Bank cut its rating from Hold to Sell, setting a $170 target—close to the quoted share price—providing a bearish counterpoint to TD Cowen’s upgrade.
• Negative Sentiment: A report of unsold Nigerian crude cargoes suggested physical oil demand may be easing, a potential headwind if softer demand pressures commodity prices and upstream earnings. Physical oil market article

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Assetmark Inc. grew its holdings in ExxonMobil by 8.3% during the 1st quarter. Assetmark Inc. now owns 492,309 shares of the oil and gas company's stock valued at $83,525,000 after purchasing an additional 37,666 shares during the last quarter. Charles Schwab Trust Co raised its holdings in ExxonMobil by 392.9% in the second quarter. Charles Schwab Trust Co now owns 122,223 shares of the oil and gas company's stock worth $16,710,000 after purchasing an additional 97,424 shares in the last quarter. CV Advisors LLC raised its holdings in ExxonMobil by 126.7% in the second quarter. CV Advisors LLC now owns 11,589 shares of the oil and gas company's stock worth $1,584,000 after purchasing an additional 6,478 shares in the last quarter. Partners Wealth Management LLC purchased a new stake in shares of ExxonMobil during the third quarter valued at about $3,317,000. Finally, Midwest Trust Co lifted its position in shares of ExxonMobil by 3.9% during the first quarter. Midwest Trust Co now owns 710,969 shares of the oil and gas company's stock valued at $120,623,000 after buying an additional 26,411 shares during the last quarter. 61.80% of the stock is owned by institutional investors and hedge funds.

ExxonMobil Trading Down 4.5%

The firm has a market capitalization of $702.64 billion, a PE ratio of 17.42, a price-to-earnings-growth ratio of 0.90 and a beta of 0.16. The company has a quick ratio of 0.92, a current ratio of 1.19 and a debt-to-equity ratio of 0.11. The company's 50-day simple moving average is $168.33 and its 200 day simple moving average is $154.86.

ExxonMobil (NYSE:XOM - Get Free Report) last issued its quarterly earnings data on Friday, October 30th. The oil and gas company reported $4.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.12 by $0.11. ExxonMobil had a net margin of 10.24% and a return on equity of 16.63%. The firm had revenue of $110.50 billion for the quarter, compared to the consensus estimate of $104.89 billion. During the same quarter in the previous year, the firm earned $1.88 EPS. As a group, sell-side analysts expect that ExxonMobil Corporation will post 13.61 EPS for the current year.

ExxonMobil Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Monday, November 16th will be given a $1.07 dividend. This represents a $4.28 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Monday, November 16th. This is a positive change from ExxonMobil's previous quarterly dividend of $1.03. ExxonMobil's payout ratio is 42.34%.

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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