Shell (NYSE:SHEL) Shares Cross Below Fifty Day Moving Average - Here's What Happened

Key Points

• Shares slipped below the 50-day moving average: Shell traded as low as $98.31 versus a 50-day average of $99.09, and was last quoted at about $99.03.
• Analyst sentiment remains positive: MarketBeat lists a “Moderate Buy” consensus and a $107.08 average price target, with 14 analysts rating the stock Buy or Strong Buy and eight rating it Hold.
• Shell beat quarterly earnings expectations and authorized a buyback: Adjusted earnings were $3.86 per share, above the $3.60 consensus, and the board approved up to $5 billion in share repurchases.

Shell PLC Unsponsored ADR (NYSE:SHEL - Get Free Report) passed below its fifty day moving average during trading on Friday. The stock has a fifty day moving average of $99.09 and traded as low as $98.31. Shell shares last traded at $99.0340, with a volume of 6,449,569 shares changing hands.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on SHEL. The Goldman Sachs Group restated a "buy" rating on shares of Shell in a report on Monday, November 2nd. HSBC reissued a "buy" rating on shares of Shell in a research note on Friday, September 25th. Morgan Stanley raised Shell from an "equal weight" rating to an "overweight" rating and lifted their price target for the company from $81.60 to $101.30 in a research note on Thursday, September 3rd. JPMorgan Chase & Co. reaffirmed a "buy" rating on shares of Shell in a research note on Wednesday, October 21st. Finally, Wells Fargo & Company upped their price objective on Shell from $105.00 to $116.00 and gave the stock an "equal weight" rating in a report on Friday, October 30th. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and eight have issued a Hold rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $107.08.

Shell Price Performance

The company has a market cap of $283.71 billion, a P/E ratio of 8.60, a P/E/G ratio of 0.89 and a beta of 0.07. The company has a debt-to-equity ratio of 0.34, a current ratio of 1.38 and a quick ratio of 1.09. The company's 50-day moving average price is $99.09 and its 200-day moving average price is $88.88.

Shell (NYSE:SHEL - Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The energy company reported $3.86 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.60 by $0.26. The firm had revenue of $92.85 billion during the quarter, compared to analysts' expectations of $93.25 billion. Shell had a return on equity of 16.86% and a net margin of 9.96%. As a group, sell-side analysts predict that Shell PLC Unsponsored ADR will post 12.29 earnings per share for the current fiscal year.

Shell declared that its Board of Directors has authorized a share buyback program on Thursday, October 29th that authorizes the company to buy back $5 billion in outstanding shares. This repurchase authorization authorizes the energy company to repurchase up to 1.7% of its stock through open market purchases. Share repurchase programs are often an indication that the company's board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Shell

Several hedge funds and other institutional investors have recently modified their holdings of SHEL. Ibex Wealth Advisors boosted its stake in shares of Shell by 1.9% during the 3rd quarter. Ibex Wealth Advisors now owns 167,296 shares of the energy company's stock valued at $15,901,000 after purchasing an additional 3,104 shares in the last quarter. Valmark Advisers Inc. acquired a new stake in Shell in the third quarter valued at approximately $256,000. Allworth Financial LP grew its holdings in shares of Shell by 11.4% in the 3rd quarter. Allworth Financial LP now owns 28,255 shares of the energy company's stock worth $2,686,000 after acquiring an additional 2,899 shares during the period. Van Strum & Towne Inc. purchased a new stake in shares of Shell during the third quarter valued at approximately $239,000. Finally, Fifth Third Bancorp grew its holdings in Shell by 2.6% during the third quarter. Fifth Third Bancorp now owns 81,963 shares of the energy company's stock worth $7,791,000 after acquiring an additional 2,105 shares during the period. Institutional investors own 28.60% of the company's stock.

About Shell

Shell plc is a global energy company engaged in the exploration and production of oil and natural gas, natural gas liquefaction and marketing, and the refining and sale of fuels and other products. Its businesses also include chemicals, power and energy solutions, including lower-carbon offerings such as biofuels, hydrogen and electric-vehicle charging.

The company serves customers and operates across regions worldwide. Its products and services reach consumers, businesses and industrial customers through activities such as fuel retailing, natural gas supply, chemicals production and energy trading.

Shell traces its history to the 1907 merger of Royal Dutch Petroleum and the U.K.'s Shell Transport and Trading Company.

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