Hsbc Global Res Downgrades Shell (NYSE:SHEL) to Hold

Key Points

• Shell has been dropped from a "strong-buy" to a "hold" rating by HSBC Global Research, reflecting a shift in analysts' outlook.
• The company's current share price target set by HSBC is $78.30, slightly decreased from the previous target of $78.90.
• Despite the downgrade, Shell has a consensus rating of "Moderate Buy" from research analysts, with a target price averaging $78.64.

Shell (NYSE:SHEL - Get Free Report) was downgraded by stock analysts at Hsbc Global Res from a "strong-buy" rating to a "hold" rating in a report issued on Monday,Zacks.com reports.

Other equities analysts have also recently issued research reports about the company. Sanford C. Bernstein cut Shell from an "outperform" rating to a "market perform" rating in a research report on Monday, June 16th. HSBC restated a "hold" rating and set a $78.30 price objective (down from $78.90) on shares of Shell in a research report on Monday. Scotiabank reaffirmed an "outperform" rating on shares of Shell in a research note on Friday, July 11th. TD Cowen decreased their price target on Shell from $82.00 to $76.00 and set a "buy" rating on the stock in a research note on Tuesday, April 8th. Finally, Piper Sandler increased their price objective on shares of Shell from $83.00 to $84.00 and gave the stock an "overweight" rating in a report on Tuesday, July 15th. Five equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $78.64.

Shell Stock Performance

Shares of Shell stock opened at $72.25 on Monday. The company has a current ratio of 1.32, a quick ratio of 1.07 and a debt-to-equity ratio of 0.36. The stock's fifty day moving average price is $70.80 and its 200-day moving average price is $68.09. Shell has a 12 month low of $58.54 and a 12 month high of $74.18. The firm has a market cap of $213.57 billion, a P/E ratio of 16.27, a P/E/G ratio of 1.93 and a beta of 0.44.

Shell (NYSE:SHEL - Get Free Report) last posted its earnings results on Thursday, July 31st. The energy company reported $1.42 earnings per share for the quarter, beating the consensus estimate of $1.13 by $0.29. The firm had revenue of $66.44 billion during the quarter, compared to analyst estimates of $69.31 billion. Shell had a net margin of 4.93% and a return on equity of 10.67%. On average, equities research analysts expect that Shell will post 7.67 earnings per share for the current fiscal year.

Shell declared that its board has initiated a stock repurchase program on Friday, May 2nd that authorizes the company to buyback $3.50 billion in outstanding shares. This buyback authorization authorizes the energy company to reacquire up to 1.8% of its stock through open market purchases. Stock buyback programs are often an indication that the company's board believes its stock is undervalued.

Institutional Investors Weigh In On Shell

Several institutional investors and hedge funds have recently bought and sold shares of the business. Avalon Trust Co bought a new stake in shares of Shell in the 1st quarter worth about $25,000. Kennebec Savings Bank bought a new position in Shell in the 1st quarter valued at $25,000. Westside Investment Management Inc. bought a new position in Shell in the second quarter valued at approximately $25,000. Brown Lisle Cummings Inc. increased its stake in shares of Shell by 103.4% in the 1st quarter. Brown Lisle Cummings Inc. now owns 356 shares of the energy company's stock valued at $26,000 after acquiring an additional 181 shares during the last quarter. Finally, Truvestments Capital LLC grew its position in shares of Shell by 102.9% in the 1st quarter. Truvestments Capital LLC now owns 420 shares of the energy company's stock valued at $31,000 after purchasing an additional 213 shares during the period. Institutional investors own 28.60% of the company's stock.

About Shell

Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and Rest of the Americas. The company operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions segments. It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure to deliver gas to market.