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Exxon Mobil Cuts Share Buybacks; 1 Chart Shows Their Massive Size

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With a nearly $370 billion market capitalization and a massive share buyback program, Exxon Mobil Corporation (NYSE: XOM) has been an outlier among its peers, as illustrated by Capital Market Labs:

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

DateFirmActionFromTo
Feb 2018BarclaysDowngradesOverweightUnderweight
Feb 2018Credit SuisseMaintainsNeutralNeutral
Jan 2018Morgan StanleyMaintainsUnderperformUnderweight

View More Analyst Ratings for XOM
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Posted-In: Capital Market Labs Fadel GheitAnalyst Color CNBC Buybacks Analyst Ratings Media Trading Ideas

 

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