ExxonMobil (NYSE:XOM) Stock Falls 2.5% – Should You Sell?

Shares of ExxonMobil Corporation (NYSE:XOM) dropped 2.5% during trading on Tuesday. The stock traded as low as $179.77 and last traded at $179.8710. Approximately 14,005,113 shares were traded during mid-day trading, a decline of 21% from the average daily volume of 17,741,350 shares. The stock had previously closed at $184.54.

ExxonMobil News Roundup

Here are the key news stories impacting ExxonMobil this week:

• Positive Sentiment: ExxonMobil and its partners won dismissal of Kazakhstan’s approximately $12 billion arbitration claim related to the Kashagan oil project. The ruling removes the immediate risk of a potentially significant financial award and eliminates a major legal overhang. ExxonMobil Wins Dismissal of Kazakhstan’s $12 Billion Kashagan Claim
• Positive Sentiment: Analysts expect higher oil prices and stronger refining margins to support third-quarter growth. Reports highlight a potential refining benefit of about $4.5 billion, which could help offset weaker results from lower crude prices. Can Exxon’s $4.5 Billion Refining Windfall Defy Dropping Crude Prices?
• Positive Sentiment: Exchange-traded funds reportedly added approximately $1.41 billion of ExxonMobil stock on October 22, while 28 ETFs increased their holdings. The buying suggests continued institutional demand for the energy major. ETFs Bought $1.41 Billion of ExxonMobil
• Neutral Sentiment: ExxonMobil is scheduled to report third-quarter results before the market opens on October 30. Investors will focus on refining profits, production, management guidance, and whether the company’s fundamentals justify its premium valuation. ExxonMobil’s Q3 Earnings on Deck
• Negative Sentiment: Brent crude recently declined as Persian Gulf exports recovered and hopes increased that tensions involving Iran could ease. Lower oil prices can pressure ExxonMobil’s upstream earnings, while the stock’s elevated valuation leaves less room for an earnings disappointment. Gulf Oil Is Roaring Back as Exxon Heads Into Earnings

Analyst Upgrades and Downgrades

XOM has been the topic of several analyst reports. DZ Bank lowered shares of ExxonMobil from a “buy” rating to a “hold” rating and set a $156.00 price target on the stock. in a report on Tuesday, August 4th. Argus raised their price objective on shares of ExxonMobil from $169.00 to $175.00 and gave the stock a “buy” rating in a report on Tuesday, August 11th. Bank of America lowered shares of ExxonMobil from a “buy” rating to a “neutral” rating and lifted their target price for the company from $154.00 to $158.00 in a research report on Tuesday, July 28th. BNP Paribas Exane lowered their target price on shares of ExxonMobil from $165.00 to $155.00 and set a “neutral” rating on the stock in a research note on Friday, July 17th. Finally, Wall Street Zen raised shares of ExxonMobil from a “hold” rating to a “buy” rating in a research report on Saturday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and thirteen have given a Hold rating to the company. According to data from MarketBeat.com, ExxonMobil has a consensus rating of “Moderate Buy” and an average price target of $167.70.

ExxonMobil Trading Down 2.5%

The company has a 50 day moving average of $165.81 and a 200 day moving average of $152.82. The firm has a market cap of $745.56 billion, a price-to-earnings ratio of 23.15, a price-to-earnings-growth ratio of 0.92 and a beta of 0.21. The company has a current ratio of 1.13, a quick ratio of 0.85 and a debt-to-equity ratio of 0.12.

ExxonMobil (NYSE:XOM) last released its quarterly earnings data on Friday, July 31st. The oil and gas company reported $3.52 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.56 by ($0.04). The company had revenue of $114.53 billion for the quarter, compared to analyst estimates of $109.94 billion. ExxonMobil had a return on equity of 13.14% and a net margin of 8.88%. During the same quarter in the prior year, the company earned $1.64 earnings per share. As a group, research analysts anticipate that ExxonMobil Corporation will post 13.63 EPS for the current year.

ExxonMobil Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Monday, August 17th were issued a dividend of $1.03 per share. This represents a $4.12 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend was Monday, August 17th. ExxonMobil’s dividend payout ratio (DPR) is currently 53.02%.

Hedge Funds Weigh In On ExxonMobil

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Arrow Financial Corp raised its stake in shares of ExxonMobil by 0.6% in the third quarter. Arrow Financial Corp now owns 27,170 shares of the oil and gas company’s stock worth $4,422,000 after acquiring an additional 161 shares during the last quarter. Willow Creek Wealth Management Inc. acquired a new stake in shares of ExxonMobil in the third quarter valued at approximately $609,000. Great Lakes Retirement Inc. acquired a new stake in shares of ExxonMobil in the third quarter valued at approximately $2,853,000. Generali Asset Management SPA SGR raised its position in ExxonMobil by 10.4% in the 3rd quarter. Generali Asset Management SPA SGR now owns 91,684 shares of the oil and gas company’s stock worth $14,922,000 after purchasing an additional 8,659 shares during the last quarter. Finally, IMG Wealth Management Inc. raised its position in ExxonMobil by 6.0% in the 3rd quarter. IMG Wealth Management Inc. now owns 1,460 shares of the oil and gas company’s stock worth $238,000 after purchasing an additional 82 shares during the last quarter. 61.80% of the stock is currently owned by institutional investors and hedge funds.

About ExxonMobil

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.