Exxon Mobil Corporation (NYSE: XOM) experienced a notable increase in its stock price, rising by 2.2% during trading on Thursday. This surge followed an upgrade from Bank of America, which raised its price target for Exxon Mobil from $129.00 to $135.00. The bank currently maintains a neutral rating on the stock.
Throughout the trading day, Exxon Mobil shares reached a high of $142.34 before closing at $140.67. The trading volume was significant, with approximately 35,708,652 shares exchanged—an increase of 81% compared to the average daily volume of 19,709,930 shares. The previous closing price stood at $137.58.
A plethora of other financial institutions have also provided insights into Exxon Mobil’s stock performance. On December 11, Wells Fargo & Company raised its target price from $156.00 to $158.00, assigning the company an “overweight” rating. Meanwhile, TD Cowen reaffirmed a “buy” rating on Monday. Conversely, Zacks Research downgraded the stock from a “hold” rating to a “strong sell” on January 1. Additionally, Piper Sandler reduced its price objective from $144.00 to $142.00 while maintaining an “overweight” rating, and Jefferies Financial Group increased its price target from $146.00 to $148.00, giving the stock a “buy” rating.
Currently, one investment analyst has rated Exxon Mobil with a strong buy, ten have given it a buy rating, ten have designated it as hold, and one has issued a sell rating. According to data from MarketBeat.com, Exxon Mobil holds an average rating of “moderate buy” with a consensus price target of $132.74.
Institutional Investors Increase Holdings
Recent trading activity indicates that institutional investors and hedge funds have been actively buying and selling Exxon Mobil shares. Norges Bank acquired a new stake in the company worth approximately $6.16 billion during the second quarter. Furthermore, First Trust Advisors LP increased its holdings in Exxon Mobil by 150.2%, now owning 7,602,601 shares valued at $819.56 million following the purchase of an additional 4,563,707 shares.
Another significant move came from Cerity Partners LLC, which raised its holdings by 200.7% in the same quarter, bringing its total to 2,014,446 shares valued at $217.16 million. Additionally, Laurel Wealth Advisors LLC increased its stake by an astonishing 10,809.8%, now holding 3,095,106 shares valued at $333.65 million after acquiring an extra 3,066,736 shares. Lastly, Franklin Resources Inc. lifted its position by 7.4% in the third quarter, owning 38,728,643 shares valued at $4.37 billion after purchasing an additional 2,660,910 shares.
Overall, institutional investors and hedge funds collectively own 61.80% of Exxon Mobil’s stock, emphasizing strong institutional interest in the company.
Financial Performance and Dividend Increase
Exxon Mobil’s recent earnings results, posted on October 31, 2023, showcased robust performance. The company reported earnings per share (EPS) of $1.88, surpassing the consensus estimate of $1.72 by $0.16. Despite a net margin of 8.99% and a return on equity of 11.22%, the company’s quarterly revenue of $83.33 billion was a 5.2% decrease compared to the previous year, slightly exceeding analyst estimates of $83.09 billion.
In a positive development for shareholders, Exxon Mobil recently announced an increase in its quarterly dividend, which was paid on December 10. Investors on record as of November 14 received a dividend of $1.03 per share, representing an annualized dividend of $4.12 and a yield of 2.9%. This marks an increase from the prior quarterly dividend of $0.99, with a dividend payout ratio of 59.88%.
Exxon Mobil Corporation, based in the United States, remains a major player in the integrated oil and gas sector, engaging in all aspects of the energy value chain, including exploration, production, refining, and distribution. The company is widely recognized for its brands, including Exxon, Mobil, and Esso, alongside its well-known Mobil 1 motor oil product.
