Exxon Mobil Corporation (XOM) Insider Stock Purchases Send Up Green Flag

With 0.21 sell/buy ratio, Exxon Mobil Corporation (NYSE:XOM) experienced more insider buying than insider selling over the last three months. Could this be a sign for outside investors to start buying as well? XOM recorded 37 sales on the open market in the last three months. They sold nearly 210,115 shares while purchases amounted to 997,316 shares that period. Looking even further back to 12 months, corporate insiders offloaded 231,740 shares when buyers snapped up 1,012,863 shares. The 12-month’s totals signify about a 0.23-to-1 sell/buy ratio.

Corson Bradley W parted with a total of 15 thousand shares of Exxon Mobil Corporation (XOM) at average share price of $72.84. This insider trade in the company took place on 12/19/2018. The total for the sales was set at $1.09 million. After this transaction, the Vice President account balance stood at 248.71 thousand shares. The stock lost -1.54 percent since that insider sale. On 12/14/2018, Hansen Neil A, Vice President and Secretary, sold 2.8 thousand shares at a price per share of $76.81. This removed 214.91 thousand shares from the insider’s fortune and the stock saw a -6.63 percent retreat in value since the news became public. This transaction left 33.35 thousand shares in the Vice President and Secretary account.

On 12/11/2018, Executive Officer Verity John R performed a sale transaction worth $1.22 million. This sale at $76.94 each has eliminated 15.85 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -6.78 percent decrease since the transaction was reported. The insider now is left with 151.34 thousand shares remaining in the account. Rosenthal David S, who performs the Vice President and Controller job, sold 7.56 thousand shares for $614.34 thousand. The disposal occurred on 12/04/2018 was priced at $81.24 per share. The share price plunged -11.72 percent since the reporting date. Rosenthal David S now left with a stake of 288.9 thousand XOM stock worth $20.72 million after the insider selling.

The 12-month median price target for Exxon Mobil Corporation (XOM) assigned by the analysts stands at $82, which represents a return potential of 14.33 percent when compared to the closing price of the stock of $71.72 on Friday, January 11. The lowest price target for the stock is $70 — slightly more than -2.4 percent from XOM’s current share price. The stock will probably climb 17.25 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $100-month high price target. This represents a whopping 39.43 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 46.32 on daily chart, which may remain a cause for concern. If the price breaks below $70.74 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $72.05 mark may result into a pull-back move towards $72.38 level. The stock is currently hovering around the first support level of $71.23. Below this, the next support is placed in the zone of $70.74. Till the time, the XOM stock trades above this level, bulls have nothing to fear.

Shares of Exxon Mobil Corporation (XOM) are trading at a P/E ratio of 19.04 times earnings reported for the past 12 months. The industry XOM operates in has an average P/E of 16.46. Its P/E ratio went as low as 12.17X and as high as 48.09 over the 5-year span. Further, it is sporting a 1.16 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.79. 33.2 percent is the gross profit margin for Exxon Mobil Corporation and operating margin sits at 6.9 percent. Along with this, the net profit margin is 8.9 percent.

On 11th of January, Exxon Mobil Corporation (NYSE:XOM) shares ended lower after a volatile session. The shares dropped -0.33 points or -0.46 percent at $71.72 with a light trade volume of 9.744 million shares. After opening the session at $71.85, the shares went as high as $71.89 and as low as $71.07, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $305 billion and now has 4.25 billion shares outstanding. Exxon Mobil Corporation (XOM) stock has lost -6.47 percent of market value in 21 trading days.

In last reported earnings results, XOM earned $1.46 per share, better than the $1.23, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $76.6B, better than the $73.5B analysts expected. Earnings are estimated to increase by 72.4 percent this year, 1.65 percent next year and continue to increase by 18.85 percent annually for the next 5 years. Analysts are forecasting revenue to climb 19.1 percent to $79.2B in the next fiscal quarter, while earnings are seen soaring by nearly 31.82 percent to $1.16 per share. History has shown that shares in Exxon Mobil Corporation have gone down on 21 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings.

XOM stock has a trailing 3-year beta of 0.89, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $4.05 a share in the trailing twelve months. The stock’s value has surged 5.18 percent year to date (YTD) against a decline of -16.68 percent in 12 month’s time. The company’s shares still trade -19.69 percent away from its 1-year high of $89.30 and 10.94 percent up from 52-week low of $64.65. The average consensus rating on the company is 2.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.