ExxonMobil (NYSE:XOM) Trading Down 2% - Here's Why

Key Points

• ExxonMobil shares fell 2% to about $160.75 amid broader weakness in energy stocks and a temporary Guyana operations suspension following a small fire aboard the Liza Unity vessel.
• The company’s longer-term outlook remains supported by potentially higher oil prices, automated drilling in the Permian Basin and continued production growth in Guyana. Exxon is also reportedly considering Shell’s U.S. chemicals assets in a deal valued at up to $8 billion, though no transaction has been announced.
• Analyst sentiment is mixed, with the stock carrying an average “Hold” rating and a consensus price target of $166.10. Exxon recently reported quarterly EPS of $3.52, slightly below estimates, and declared a quarterly dividend of $1.03, representing a 2.6% annualized yield.

ExxonMobil Corporation (NYSE:XOM - Get Free Report)'s share price fell 2% during trading on Tuesday . The stock traded as low as $160.46 and last traded at $160.7480. Approximately 17,238,479 shares changed hands during trading, a decline of 9% from the average daily volume of 19,044,752 shares. The stock had previously closed at $164.05.

More ExxonMobil News

Here are the key news stories impacting ExxonMobil this week:

• Positive Sentiment: Higher oil prices and tight supply support earnings potential. A tightening oil market, including concerns about depleted U.S. strategic reserves and disruptions to Iranian exports, could improve upstream margins and cash flow for ExxonMobil. America's Strategic Petroleum Reserve Is Running on Fumes
• Positive Sentiment: Permian automation could lift production and reduce costs. Exxon is expanding automated drilling and reportedly plans to automate about half of its Permian Basin rig fleet by 2028. Greater drilling efficiency could support higher output, lower labor costs and improved returns. Focus: Exxon turns to automated drilling in the Permian
• Positive Sentiment: Guyana remains a major growth engine. A new floating production, storage and offloading vessel nearing startup could expand long-term production and cash flow from Guyana, one of ExxonMobil’s highest-growth assets. Is Guyana Becoming an Even Bigger Cash Flow Engine for ExxonMobil?
• Positive Sentiment: Potential chemicals acquisition could broaden Exxon’s portfolio. Exxon is reportedly considering Shell’s U.S. chemicals assets in a transaction valued at as much as $8 billion. The deal could strengthen its chemicals platform and create synergies, although no transaction has been announced. Shell draws interest from bidders including Exxon
• Neutral Sentiment: Analysts see a valuation trade-off. Commentary describes XOM as offering greater sensitivity to elevated oil prices and a comparatively attractive valuation, while smaller energy companies may offer more upside but carry greater risk.
• Negative Sentiment: Guyana operations were temporarily suspended after a fire. A small fire aboard the Liza Unity vessel led ExxonMobil to halt crude offloading and operations temporarily. The incident appears limited, but any prolonged outage could reduce production and raise operational concerns. ExxonMobil temporarily halts operations at Guyana site after fire
• Negative Sentiment: Broad energy-sector weakness is weighing on sentiment. A decline across energy stocks has created near-term pressure, even though ExxonMobil’s strategic outlook remains supported by production growth and disciplined balance-sheet metrics.

Analysts Set New Price Targets

Several equities research analysts have commented on XOM shares. TD Cowen upped their price objective on ExxonMobil from $155.00 to $168.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Wells Fargo & Company reaffirmed an "overweight" rating and set a $182.00 target price on shares of ExxonMobil in a report on Monday, August 3rd. Barclays decreased their target price on shares of ExxonMobil from $182.00 to $177.00 and set an "overweight" rating for the company in a research note on Monday, August 17th. DZ Bank downgraded 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. Finally, Zacks Research lowered shares of ExxonMobil from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, May 26th. Ten equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $166.10.

ExxonMobil Stock Down 2.0%

The company has a market cap of $666.29 billion, a PE ratio of 20.69, a P/E/G ratio of 0.65 and a beta of 0.17. The business has a 50-day simple moving average of $149.04 and a 200-day simple moving average of $151.61. The company has a quick ratio of 0.85, a current ratio of 1.13 and a debt-to-equity ratio of 0.12.

ExxonMobil (NYSE:XOM - Get Free Report) last posted its quarterly earnings data on Friday, July 31st. The oil and gas company reported $3.52 EPS for the quarter, missing analysts' consensus estimates of $3.56 by ($0.04). The business had revenue of $114.53 billion during the quarter, compared to analysts' expectations of $109.94 billion. ExxonMobil had a net margin of 8.88% and a return on equity of 13.14%. During the same quarter last year, the firm earned $1.64 earnings per share. Equities research analysts anticipate that ExxonMobil Corporation will post 11.86 EPS for the current year.

ExxonMobil Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 17th will be issued a $1.03 dividend. This represents a $4.12 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend is Monday, August 17th. ExxonMobil's payout ratio is presently 53.02%.

Hedge Funds Weigh In On ExxonMobil

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. California State Teachers Retirement System boosted its holdings in ExxonMobil by 14,136.6% in the 2nd quarter. California State Teachers Retirement System now owns 696,207,635 shares of the oil and gas company's stock worth $95,185,508,000 after buying an additional 691,317,352 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of ExxonMobil by 2.0% during the fourth quarter. Bank of America Corp DE now owns 75,152,366 shares of the oil and gas company's stock valued at $9,043,836,000 after acquiring an additional 1,457,560 shares during the last quarter. Norges Bank purchased a new position in shares of ExxonMobil in the fourth quarter valued at approximately $7,625,063,000. Bank of New York Mellon Corp lifted its position in shares of ExxonMobil by 1.2% in the fourth quarter. Bank of New York Mellon Corp now owns 46,605,353 shares of the oil and gas company's stock valued at $5,608,488,000 after acquiring an additional 531,362 shares in the last quarter. Finally, Northern Trust Corp boosted its stake in shares of ExxonMobil by 1.0% in the third quarter. Northern Trust Corp now owns 44,026,019 shares of the oil and gas company's stock worth $4,963,934,000 after acquiring an additional 445,283 shares during the last quarter. 61.80% of the stock is owned by hedge funds and other institutional investors.

About ExxonMobil

ExxonMobil Corporation NYSE: XOM is an integrated oil and gas company engaged in the exploration, production, refining, distribution and marketing of petroleum products and the manufacture and sale of petrochemicals. Its operations span the full energy value chain, including upstream exploration and development of crude oil and natural gas; midstream transportation and storage; and downstream refining, product distribution and retail. The company also produces a broad range of chemical products for industrial and consumer applications.

ExxonMobil markets fuels and lubricants under well-known brands such as Exxon, Mobil and Esso, and its Mobil 1 motor oil is a prominent consumer product.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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