ExxonMobil (NYSE:XOM) Trading Down 3.6% – Should You Sell?

ExxonMobil Corporation (NYSE:XOM) traded down 3.6% on Wednesday . The company traded as low as $162.56 and last traded at $163.1940. 13,267,390 shares changed hands during trading, a decline of 29% from the average session volume of 18,586,701 shares. The stock had previously closed at $169.32.

More ExxonMobil News

Here are the key news stories impacting ExxonMobil this week:

• Positive Sentiment: Potential return to Venezuela: ExxonMobil is reportedly nearing a preliminary agreement to invest in Venezuelan oil fields, including heavy-oil assets in the Orinoco Belt. The opportunity could materially expand long-term reserves and production, although the deal remains unfinalized. Exxon advances talks to return to Venezuela
• Positive Sentiment: Strong commodity backdrop: High oil prices, combined with low-cost production from Guyana and the Permian Basin, could support ExxonMobil’s earnings and cash flow. Management is targeting approximately 5.5 million barrels of oil equivalent per day of upstream production by 2030. Can Strong Oil Prices Drive ExxonMobil’s Business Growth?
• Positive Sentiment: Refining-market support and future growth options: ExxonMobil’s CFO warned that refining capacity is unusually tight, potentially supporting margins. The company is also expanding Papua New Guinea gas operations and developing carbon capture and other lower-emission businesses that could become meaningful earnings contributors over time. Exxon Mobil CFO warns of hidden risks behind oil supply shock
• Neutral Sentiment: Capital returns: Coverage comparing ExxonMobil with ConocoPhillips suggests Exxon’s buybacks could be substantial in dollar terms, but their effect on per-share value depends on the company’s much larger market capitalization and share base. ExxonMobil versus ConocoPhillips buybacks
• Negative Sentiment: Joliet refinery outage: Floodwater overwhelmed a pump at ExxonMobil’s 275,000-barrel-per-day Joliet, Illinois, refinery, leaving the facility offline and tightening Midwest diesel supplies. The disruption could reduce downstream earnings and create repair, supply-chain, and regulatory costs, even if regional fuel prices rise. ExxonMobil says floodwater overwhelmed pump at Joliet refinery
• Negative Sentiment: Execution and policy risks: Venezuela could expose ExxonMobil to sanctions, sovereign, and political risks, while the company’s higher long-term emissions forecast may increase environmental scrutiny. Oil futures’ backwardation also signals concern that elevated prices may not persist.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the stock. Wall Street Zen upgraded shares of ExxonMobil to a “hold” rating in a report on Saturday, September 5th. Mizuho cut their target price on ExxonMobil from $175.00 to $170.00 and set a “neutral” rating on the stock in a research report on Thursday, July 9th. Bank of America cut ExxonMobil from a “buy” rating to a “neutral” rating and raised their target price for the company from $154.00 to $158.00 in a report on Tuesday, July 28th. DZ Bank cut shares of ExxonMobil from a “buy” rating to a “hold” rating and set a $156.00 price target for the company. in a research report on Tuesday, August 4th. Finally, UBS Group reiterated a “buy” rating on shares of ExxonMobil in a research note on Tuesday, September 8th. Ten analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $167.45.

ExxonMobil Trading Down 0.0%

The company has a market capitalization of $676.75 billion, a price-to-earnings ratio of 21.01, a price-to-earnings-growth ratio of 1.00 and a beta of 0.18. The business’s 50 day simple moving average is $157.72 and its 200 day simple moving average is $153.21. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.13 and a quick ratio of 0.85.

ExxonMobil (NYSE:XOM) last posted its quarterly earnings data on Friday, July 31st. The oil and gas company reported $3.52 earnings per share for the quarter, missing analysts’ consensus estimates of $3.56 by ($0.04). ExxonMobil had a net margin of 8.88% and a return on equity of 13.14%. The firm had revenue of $114.53 billion during the quarter, compared to analysts’ expectations of $109.94 billion. During the same quarter last year, the business earned $1.64 earnings per share. Research analysts anticipate that ExxonMobil Corporation will post 11.93 EPS for the current year.

ExxonMobil Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Monday, August 17th were given a $1.03 dividend. The ex-dividend date was Monday, August 17th. This represents a $4.12 dividend on an annualized basis and a dividend yield of 2.5%. ExxonMobil’s dividend payout ratio (DPR) is currently 53.02%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in XOM. Anchor Investment Management LLC grew its stake in ExxonMobil by 6.8% in the 2nd quarter. Anchor Investment Management LLC now owns 89,385 shares of the oil and gas company’s stock valued at $12,221,000 after acquiring an additional 5,705 shares during the last quarter. Bullseye Investment Management LLC acquired a new position in ExxonMobil during the second quarter worth about $83,000. Talon Private Wealth LLC grew its position in shares of ExxonMobil by 30.6% in the second quarter. Talon Private Wealth LLC now owns 23,194 shares of the oil and gas company’s stock valued at $3,171,000 after purchasing an additional 5,440 shares during the last quarter. Rench Wealth Management Inc. grew its holdings in ExxonMobil by 0.6% during the 2nd quarter. Rench Wealth Management Inc. now owns 51,586 shares of the oil and gas company’s stock valued at $7,053,000 after buying an additional 323 shares during the last quarter. Finally, Miramontes Capital LLC boosted its stake in shares of ExxonMobil by 9.2% during the 2nd quarter. Miramontes Capital LLC now owns 16,917 shares of the oil and gas company’s stock worth $2,313,000 after purchasing an additional 1,425 shares during the last quarter. Institutional investors and hedge funds own 61.80% of the company’s stock.

About ExxonMobil

Exxon Mobil Corporation, doing business as ExxonMobil, is an integrated energy company engaged in the exploration, development, production and marketing of crude oil and natural gas. Its upstream operations support oil and natural gas production in multiple regions worldwide, while its downstream businesses refine crude oil into fuels and other petroleum products for commercial, industrial and consumer markets.

Through its product solutions businesses, ExxonMobil manufactures and markets lubricants, specialty fluids, petroleum-derived products and chemical products, including commodity and performance chemicals used in packaging, automotive components, construction materials and other industrial applications.