Royal Dutch Shell PLC (NYSE:RDS.A) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a report issued on Friday. The brokerage currently has a $57.00 price objective on the stock.
According to Zacks, “Royal Dutch Shell is one of the largest integrated energy firms in the world with a strong and diversified portfolio of development projects that offer attractive long-term opportunities. The company’s acquisition of BG Group, UK’s third largest energy player, has improved its prospects even further. Shell will be able to boost its oil and gas reserves by almost 25% and will benefit from BG Group’s big projects worldwide. We believe that the recently struck deal to sell some of its GoM assets is an important step in executing on Shell's plan to divest $6-$8 billion of properties this year and maintain its generous dividend policy. However, the difficult operating environment – in the form of continued weakness in commodity prices and depressed refining margins – continue to keep us on the sidelines. We think that the current valuation is fair and adequately reflects Shell's future growth prospects.”
RDS.A has been the subject of a number of other research reports. Argus restated a “buy” rating and issued a $60.00 price target on shares of Royal Dutch Shell PLC in a research report on Wednesday, August 24th. Vetr cut Royal Dutch Shell PLC from a “strong-buy” rating to a “buy” rating and set a $55.72 price target for the company. in a research report on Monday, June 20th. Jefferies Group restated a “buy” rating on shares of Royal Dutch Shell PLC in a research report on Sunday, July 10th. Morgan Stanley cut Royal Dutch Shell PLC from an “overweight” rating to an “equal weight” rating in a research report on Thursday, June 30th. Finally, Liberum Capital cut Royal Dutch Shell PLC from a “buy” rating to a “hold” rating in a research report on Tuesday, August 2nd. One investment analyst has rated the stock with a sell rating, eight have assigned a hold rating, eleven have issued a buy rating and two have issued a strong buy rating to the company’s stock. Royal Dutch Shell PLC has a consensus rating of “Buy” and a consensus target price of $58.58.
Royal Dutch Shell PLC (NYSE:RDS.A) last released its earnings results on Thursday, July 28th. The company reported $0.06 EPS for the quarter, missing analysts’ consensus estimates of $0.53 by $0.47. Royal Dutch Shell PLC had a negative net margin of 2.06% and a positive return on equity of 3.04%. The business earned $58.42 billion during the quarter, compared to analyst estimates of $60.82 billion. During the same period last year, the business posted $0.61 EPS. Royal Dutch Shell PLC’s revenue was down 19.3% compared to the same quarter last year.
The company also recently disclosed a quarterly dividend, which was paid on Monday, September 19th. Stockholders of record on Friday, August 12th were paid a $0.799 dividend. This represents a $3.20 annualized dividend and a dividend yield of Infinity. The ex-dividend date was Wednesday, August 10th. Royal Dutch Shell PLC’s dividend payout ratio is currently -201.26%.
About Royal Dutch Shell PLC
Royal Dutch Shell plc (Shell) is an independent oil and gas company. The Company explores for crude oil and natural gas across the world, both in conventional fields and from sources, such as tight rock, shale and coal formations. The Company is engaged in the principal aspects of the oil and gas industry in approximately 70 countries.