Occidental Petroleum (NYSE:OXY) Share Price Breaks Below Two Hundred Day Moving Average - What's Next?

Key Points

• Occidental shares fell below their 200-day moving average, trading as low as $54.97 versus the average of $56.35, and were last quoted at $55.79.
• Quarterly adjusted earnings of $1.91 per share beat estimates and rose from $0.64 a year earlier, while revenue climbed 20.6% to $6.77 billion but came in slightly below expectations.
• Analysts’ average rating is “Hold,” with an average price target of $67.88. Occidental also signed long-term agreements to source captured CO₂ for enhanced oil recovery in the Permian Basin, with project developers funding the related infrastructure.

Occidental Petroleum Corporation (NYSE:OXY - Get Free Report)'s stock price passed below its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $56.35 and traded as low as $54.97. Occidental Petroleum shares last traded at $55.7880, with a volume of 11,180,236 shares trading hands.

Key Headlines Impacting Occidental Petroleum

Here are the key news stories impacting Occidental Petroleum this week:

• Positive Sentiment: Adjusted earnings were $1.91 per share, well above analyst estimates of roughly $1.34–$1.45 and up from $0.64 a year earlier. Operational outperformance in core shale basins helped offset lower crude prices, and the company also reported progress reducing debt. Reuters article
• Positive Sentiment: Oxy signed long-term agreements to obtain captured CO₂ for enhanced oil recovery in the Permian Basin. The project developers will fund and build the capture and delivery infrastructure, potentially supporting Oxy’s oil recovery operations without requiring it to finance those facilities. CO₂ agreements announcement
• Neutral Sentiment: Revenue increased 20.6% year over year to $6.77 billion, but was slightly below the $6.80 billion estimate cited in one report. The earnings beat is the stronger near-term signal, though investors may weigh revenue performance against it. Q3 sales and earnings report

Wall Street Analyst Weigh In

OXY has been the subject of several analyst reports. Susquehanna upped their price objective on Occidental Petroleum from $70.00 to $77.00 and gave the stock a "positive" rating in a research report on Tuesday, October 20th. Piper Sandler assumed coverage on Occidental Petroleum in a research note on Tuesday, October 27th. They set a "neutral" rating and a $69.00 target price for the company. Wells Fargo & Company upped their price target on Occidental Petroleum from $79.00 to $82.00 and gave the company an "overweight" rating in a report on Monday, September 14th. UBS Group increased their price target on shares of Occidental Petroleum from $67.00 to $73.00 and gave the company a "neutral" rating in a research note on Wednesday, October 14th. Finally, Weiss Ratings raised shares of Occidental Petroleum from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, October 13th. Twelve analysts have rated the stock with a Buy rating and fifteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $67.88.

Occidental Petroleum Stock Down 1.1%

The firm's 50 day simple moving average is $59.98 and its 200-day simple moving average is $56.35. The company has a market cap of $55.77 billion, a price-to-earnings ratio of 8.64, a P/E/G ratio of 0.66 and a beta of 0.16. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.41 and a quick ratio of 1.13.

Occidental Petroleum (NYSE:OXY - Get Free Report) last posted its earnings results on Monday, November 9th. The oil and gas producer reported $1.91 EPS for the quarter, topping analysts' consensus estimates of $1.46 by $0.45. Occidental Petroleum had a return on equity of 15.31% and a net margin of 28.36%. The business had revenue of $6.77 billion for the quarter, compared to analysts' expectations of $6.82 billion. During the same quarter in the previous year, the firm earned $0.64 earnings per share. The business's revenue was up 20.6% compared to the same quarter last year. As a group, sell-side analysts anticipate that Occidental Petroleum Corporation will post 6.81 earnings per share for the current year.

Occidental Petroleum Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Thursday, December 10th will be paid a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a yield of 2.0%. The ex-dividend date is Thursday, December 10th. Occidental Petroleum's dividend payout ratio (DPR) is currently 17.34%.

Institutional Investors Weigh In On Occidental Petroleum

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Berkshire Hathaway Inc acquired a new stake in Occidental Petroleum during the 2nd quarter worth $12,868,205,000. Bank of New York Mellon Corp grew its position in Occidental Petroleum by 84.8% during the 2nd quarter. Bank of New York Mellon Corp now owns 10,643,916 shares of the oil and gas producer's stock worth $516,975,000 after purchasing an additional 4,882,834 shares during the last quarter. Danske Bank A S acquired a new position in Occidental Petroleum in the second quarter valued at $172,413,000. Legal & General Group Plc acquired a new position in Occidental Petroleum in the second quarter valued at $168,860,000. Finally, State Street Corp raised its holdings in shares of Occidental Petroleum by 6.6% in the second quarter. State Street Corp now owns 46,141,269 shares of the oil and gas producer's stock valued at $2,252,271,000 after buying an additional 2,870,472 shares during the last quarter. Hedge funds and other institutional investors own 88.70% of the company's stock.

About Occidental Petroleum

Occidental Petroleum Corporation is an energy and chemicals company headquartered in Houston, Texas. Its oil and gas business explores for and produces crude oil, natural gas liquids and natural gas, with operations in the United States and international markets, including the Middle East and North Africa.

Through its OxyChem business, Occidental manufactures and markets basic chemicals and vinyl products used in applications such as water treatment, construction and consumer goods.

The company also develops carbon management and lower-carbon technology projects, including carbon capture and storage.

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