Exxon Mobil (NYSE:XOM) has received a positive boost from analysts, with BNP Paribas Exane upgrading its rating from underperform to neutral, as reported on October 17, 2023. The investment firm set a target price of $114.00 for the oil and gas giant’s shares, reflecting a more optimistic outlook amid a competitive market landscape.
Several other firms have also recently weighed in on Exxon Mobil’s stock. Wells Fargo & Company initiated coverage with an “overweight” rating and a price objective of $156.00. Melius Research commenced its coverage earlier in August, issuing a “hold” rating with a target price of $111.00. Scotiabank reiterated an “outperform” rating on November 3, 2023, while Bank of America raised its price target from $113.00 to $120.00 with a neutral rating. UBS Group also maintained a “buy” rating and set a target of $145.00.
Currently, the consensus among analysts indicates a “Moderate Buy” rating. According to MarketBeat, there are two analysts with a Strong Buy rating, nine with a Buy rating, and thirteen who have assigned a Hold rating. The average target price for Exxon Mobil stands at $128.48.
Recent Financial Performance and Dividend Increase
Exxon Mobil’s stock saw a modest increase of 1.1% following its latest earnings report on June 17, 2023, where it posted earnings per share (EPS) of $0.65 for the quarter. The company reported a net margin of 8.99% and a return on equity of 11.22%, with total revenues reaching $57.55 billion for the quarter. Analysts anticipate that Exxon Mobil will report an EPS of 7.43 for the current fiscal year.
In addition to the positive analyst ratings, Exxon Mobil recently announced a quarterly dividend of $1.03, which was paid on December 10, 2023. This increase from the previous dividend of $0.99 translates to an annualized dividend of $4.12 and a yield of 3.4%. The company’s dividend payout ratio currently stands at 59.88%.
Institutional Investment Activity
Institutional investors have shown significant interest in Exxon Mobil, with various hedge funds adjusting their positions. Eagle Capital Management LLC increased its holdings by 15.3% in the first quarter, now owning 2,836 shares valued at approximately $337,000. Cove Private Wealth LLC raised its stake by 48.5%, owning 15,946 shares valued at $1.9 million. Additionally, Longfellow Investment Management Co. LLC boosted its holdings by 30.8%, now holding 17,868 shares worth about $2.1 million.
Overall, approximately 61.80% of Exxon Mobil’s shares are owned by institutional investors, highlighting strong confidence in the company’s future prospects.
Exxon Mobil Corporation engages in the exploration and production of crude oil and natural gas globally, operating through various segments including Upstream, Energy Products, Chemical Products, and Specialty Products. The recent upgrades and positive financial indicators suggest a promising outlook for the company as it continues to navigate the complexities of the oil and gas market.
