Exxon Mobil Cuts Share Buybacks; 1 Chart Shows Their Massive Size
In the fourth quarter alone, the company spent $3 billion on share repurchases. However, after announcing Q4 results, the company said it would be cutting share buybacks to $1 billion in the first quarter.
Amid plunging oil prices and a Q4 profit that fell 21 percent, the company still managed to beat analyst expectations, but difficulties may be on the horizon.
Speaking on CNBC Monday, Oppenheimer analyst Fadel Gheit thought “things are going to be a lot worse because of oil and gas prices” falling in 2015. For every $10 change in oil prices, “Exxon Mobil earnings are impacted by about $4-to-$5 billion."
Gheit felt that it would be best to avoid oil stocks, however, for market-weighted investors, Exxon Mobil is a favorable position to take when making a “flight to quality.”
Exxon Mobil recently traded at $88.31, up 1.02 percent.
Latest Ratings for XOM
|Jun 2016||Bank of America||Downgrades||Buy||Neutral|
|May 2016||Argus Research||Upgrades||Hold||Buy|
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