ExxonMobil (NYSE:XOM) Stock Falls 3.9% – What’s Next?

ExxonMobil Corporation (NYSE:XOM)’s stock price traded down 3.9% during mid-day trading on Monday. The stock traded as low as $179.67 and last traded at $179.9180. Approximately 15,942,491 shares were traded during mid-day trading, a decline of 10% from the average session volume of 17,712,787 shares. The stock had previously closed at $187.25.

ExxonMobil News Summary

Here are the key news stories impacting ExxonMobil this week:

• Positive Sentiment: Analysts raised price targets: TD Cowen lifted its target to $193 and maintained a buy rating; Citigroup raised its target to $175 but kept a neutral rating. TD Cowen price target article
• Positive Sentiment: Refining investment could support future cash flow: Exxon plans to invest $10 billion in refining through 2030, including an expansion targeting 100,000 barrels per day of additional diesel output and improved efficiency. Diesel expansion article
• Positive Sentiment: Recent operating performance has been strong: Reports highlighted refining strength, cost discipline, a higher dividend and substantial buybacks, which may help support shareholder returns. ExxonMobil and Chevron results article
• Neutral Sentiment: Analyst views remain mixed: While some firms raised targets, DZ Bank downgraded Exxon to sell with a $170 target, reflecting limited perceived upside at the cited share price. DZ Bank rating information
• Negative Sentiment: Oil-price concerns are a key headwind: A CNBC trader argued that inflation pressures have eased and oil may not return to $100; reports of unsold crude cargoes also suggest physical-market demand is softening. Lower oil prices can reduce Exxon’s upstream earnings. Oil-price outlook article Physical oil market article
• Negative Sentiment: Cash-flow coverage may be a concern: One report said cash generation exceeded shareholder payments, leaving scope for balance-sheet repair and highlighting Exxon’s exposure to commodity swings. Cash generation and shareholder payments article

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on XOM shares. Argus lifted their price objective 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. Morgan Stanley raised their target price on ExxonMobil from $185.00 to $187.00 and gave the company an “overweight” rating in a research note on Monday. Weiss Ratings upgraded ExxonMobil from a “buy (b-)” rating to a “buy (b)” rating in a research note on Tuesday, September 29th. The Goldman Sachs Group reiterated a “neutral” rating and set a $178.00 target price on shares of ExxonMobil in a research note on Tuesday, October 20th. Finally, Citigroup raised their price target on shares of ExxonMobil from $155.00 to $175.00 and gave the stock a “neutral” rating in a research report on Wednesday. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $170.74.

ExxonMobil Trading Down 4.5%

The stock has a market cap of $691.50 billion, a price-to-earnings ratio of 16.71, a P/E/G ratio of 0.87 and a beta of 0.16. The business’s fifty day simple moving average is $168.50 and its 200 day simple moving average is $155.06. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.19 and a quick ratio of 0.92.

ExxonMobil (NYSE:XOM) last issued its earnings results on Friday, October 30th. The oil and gas company reported $4.23 earnings per share 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 company had revenue of $110.50 billion for the quarter, compared to analysts’ expectations of $104.89 billion. During the same period in the prior year, the company earned $1.88 earnings per share. On average, research analysts predict that ExxonMobil Corporation will post 13.54 EPS for the current year.

ExxonMobil Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Monday, November 16th will be paid a dividend of $1.07 per share. This represents a $4.28 annualized dividend and a yield of 2.5%. This is a positive change from ExxonMobil’s previous quarterly dividend of $1.03. The ex-dividend date is Monday, November 16th. ExxonMobil’s dividend payout ratio (DPR) is currently 42.34%.

Institutional Trading of ExxonMobil

Several hedge funds have recently made changes to their positions in the stock. GQG Partners LLC lifted its holdings in ExxonMobil by 153.3% in the second quarter. GQG Partners LLC now owns 16,877,523 shares of the oil and gas company’s stock worth $2,307,497,000 after purchasing an additional 10,214,420 shares during the period. Quantum Portfolio Management LLC bought a new position in ExxonMobil in the 1st quarter valued at about $965,932,000. Arrowstreet Capital Limited Partnership acquired a new position in ExxonMobil during the 1st quarter valued at about $766,345,000. Dimensional Fund Advisors LP increased its stake in ExxonMobil by 5.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 28,364,314 shares of the oil and gas company’s stock valued at $4,812,790,000 after buying an additional 1,540,902 shares during the period. Finally, Fifth Third Bancorp increased its stake in ExxonMobil by 63.3% during the 1st quarter. Fifth Third Bancorp now owns 3,371,424 shares of the oil and gas company’s stock valued at $571,996,000 after buying an additional 1,307,465 shares during the period. Institutional investors own 61.80% of the company’s stock.

ExxonMobil Company Profile

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.