Exxon Mobil Corporation has been upgraded from an underperform rating to a neutral rating by BNP Paribas Exane, according to a research report published on Monday. The firm has set a price target of $114.00 for the oil and gas giant’s stock. This rating change comes as part of a broader wave of analyst evaluations concerning the company’s performance.
Several financial institutions have recently assessed Exxon Mobil, indicating a growing interest in the company’s stock. On October 17, 2023, Wells Fargo & Company initiated coverage with an “overweight” rating and a more ambitious price target of $156.00. Melius Research also began coverage on August 20, assigning a “hold” rating along with a price objective of $111.00. Additionally, Scotiabank reaffirmed an “outperform” rating on November 3, while Bank of America raised its price target from $113.00 to $120.00 and maintained a “neutral” stance on the stock.
As of now, two investment analysts have rated Exxon Mobil with a Strong Buy, nine have given it a Buy rating, and thirteen have classified it as a Hold. MarketBeat reports that the company currently holds an average rating of “Moderate Buy” along with an average target price of $128.48.
Recent Financial Performance and Dividend Increase
Exxon Mobil’s stock price increased by 1.1% following recent earnings results released on June 17, 2023. The company reported earnings of $0.65 per share for the quarter, with a return on equity of 11.22% and a net margin of 8.99%. The total revenue recorded for the quarter was $57.55 billion. Analysts predict that Exxon Mobil will post earnings per share of 7.43 for the current fiscal year.
In addition to its financial performance, Exxon Mobil announced a quarterly dividend of $1.03, which was paid on December 10, 2023. This increase from the previous quarterly dividend of $0.99 represents an annualized dividend of $4.12 and a yield of 3.4%. The company’s dividend payout ratio stands at 59.88%, reflecting its commitment to returning value to shareholders.
Institutional Investment Trends
Recent activity among hedge funds also highlights growing institutional interest in Exxon Mobil. Eagle Capital Management LLC raised its stake by 15.3% during the first quarter, acquiring an additional 376 shares to reach a total of 2,836 shares valued at approximately $337,000. Cove Private Wealth LLC significantly increased its holdings by 48.5%, now owning 15,946 shares worth around $1.9 million.
Ballast Inc. and Longfellow Investment Management Co. LLC also boosted their positions in Exxon Mobil by 0.9% and 30.8%, respectively. Financial Engines Advisors L.L.C. increased its holdings by 12.3%, reflecting a trend among institutional investors to favor Exxon Mobil. Currently, institutional investors own approximately 61.80% of the company’s stock.
Exxon Mobil Corporation remains a dominant player in the exploration and production of crude oil and natural gas, both in the United States and internationally. The company’s operations are divided into various segments, including Upstream, Energy Products, Chemical Products, and Specialty Products. The recent analyst upgrades and institutional investments underscore the market’s positive outlook on Exxon Mobil’s prospects in the evolving energy landscape.
