Exxon Mobil Corporation (NYSE:XOM) Downgraded by Zacks Investment Research to Strong Sell
Zacks Investment Research downgraded shares of Exxon Mobil Corporation (NYSE:XOM) from a hold rating to a strong sell rating in a research report sent to investors on Friday.
According to Zacks, “The upstream activities of Exxon are heavily dependent on offshore resources. However, drilling in those areas is getting increasingly expensive which could dent the company’s cashflow. The company could make more profit if it relies on comparatively cheaper onshore operations like domestic shale resources — where most of the explorers have been gathering over the last few years. Also, Exxon has collaborated with Russia for exploring potential commercial reserves in the country. However, tensions between the U.S. and Russia might lead the Republicans to impose sanctions on Russia. Hence, Exxon’s efforts to generate shareholders’ cashflow by exploiting Russian oil and gas reserves might not pay off. Moreover, Exxon’s dividend yield is one of the lowest among major energy firms. In fact, the current dividend yield of 3.8% is lower than the 4.76% yield of the Zacks categorized Oil & Gas-International Integrated industry.”
Several other research analysts have also issued reports on the stock. Bank of America Corporation upgraded shares of Exxon Mobil Corporation from a neutral rating to a buy rating and lifted their price target for the stock from $95.00 to $100.00 in a research report on Thursday, May 11th. Goldman Sachs Group, Inc. (The) restated a neutral rating and issued a $83.00 price target on shares of Exxon Mobil Corporation in a research report on Tuesday, May 30th. BMO Capital Markets lifted their price target on shares of Exxon Mobil Corporation from $76.00 to $80.00 and gave the stock a market perform rating in a research report on Wednesday, June 21st. Scotia Howard Weill upgraded shares of Exxon Mobil Corporation from a sector perform rating to an outperform rating in a research report on Monday, June 5th. Finally, Morgan Stanley restated a sell rating and issued a $84.00 price target on shares of Exxon Mobil Corporation in a research report on Thursday, April 13th. Nine research analysts have rated the stock with a sell rating, twelve have given a hold rating, ten have assigned a buy rating and one has issued a strong buy rating to the company. The company presently has an average rating of Hold and a consensus price target of $86.05.
Exxon Mobil Corporation (XOM) traded down 0.52% during midday trading on Friday, reaching $80.86. The company had a trading volume of 7,914,701 shares. Exxon Mobil Corporation has a 52-week low of $79.26 and a 52-week high of $95.55. The company’s 50 day moving average is $81.74 and its 200-day moving average is $83.51. The company has a market capitalization of $342.63 billion, a P/E ratio of 33.73 and a beta of 0.82.
Exxon Mobil Corporation (NYSE:XOM) last posted its quarterly earnings results on Friday, April 28th. The oil and gas company reported $0.95 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.85 by $0.10. The firm had revenue of $63.29 billion for the quarter, compared to analyst estimates of $64.88 billion. Exxon Mobil Corporation had a net margin of 4.17% and a return on equity of 6.78%. The firm’s quarterly revenue was up 29.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.43 earnings per share. Equities analysts expect that Exxon Mobil Corporation will post $3.68 earnings per share for the current fiscal year.
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Several large investors have recently added to or reduced their stakes in the stock. Coldstream Capital Management Inc. increased its position in shares of Exxon Mobil Corporation by 5.2% in the fourth quarter. Coldstream Capital Management Inc. now owns 38,190 shares of the oil and gas company’s stock valued at $3,447,000 after buying an additional 1,871 shares during the period. JT Stratford LLC purchased a new position in shares of Exxon Mobil Corporation during the fourth quarter valued at approximately $543,000. Concentric Wealth Management LLC purchased a new position in shares of Exxon Mobil Corporation during the fourth quarter valued at approximately $2,222,000. BigSur Wealth Management LLC purchased a new position in shares of Exxon Mobil Corporation during the fourth quarter valued at approximately $449,000. Finally, Honkamp Krueger Financial Services Inc. ADV purchased a new position in shares of Exxon Mobil Corporation during the fourth quarter valued at approximately $5,386,000. 50.54% of the stock is owned by institutional investors and hedge funds.
Exxon Mobil Corporation Company Profile
Exxon Mobil Corporation is engaged in energy business. The Company is engaged in the exploration, production, transportation and sale of crude oil and natural gas, and the manufacture, transportation and sale of petroleum products. The Company also manufactures and markets commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics, and a range of specialty products.
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