Royal Dutch Shell PLC (RDS.A) Rating Lowered to Sell at Zacks Investment Research
Royal Dutch Shell PLC (NYSE:RDS.A) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
According to Zacks, “Predictably, the commodity price slump has adversely affected Royal Dutch Shell’s earnings and cash flows, particularly at its upstream unit. Furthermore, lost reserves/production from the group's assets in Nigeria amid militant attacks and heightened risk related to the company’s remaining operations in the country cannot be ignored either. We also expect Shell ADRs to remain soft due to its major natural gas focus and lofty capital spending. Moreover, the $50 billion BG acquisition is likely to put pressure on the company's balance sheet. Considering these headwinds, we expect Shell to perform below the industry, which gives investors little reason to hold the stock.”
Several other equities research analysts have also recently commented on RDS.A. Simmons reaffirmed an “overweight” rating on shares of Royal Dutch Shell PLC in a research report on Thursday, August 11th. Vetr cut Royal Dutch Shell PLC from a “buy” rating to a “hold” rating and set a $56.04 price objective on the stock. in a research report on Monday, June 27th. Jefferies Group reaffirmed a “buy” rating on shares of Royal Dutch Shell PLC in a research report on Thursday, June 30th. Argus reaffirmed a “buy” rating and set a $60.00 price objective on shares of Royal Dutch Shell PLC in a research report on Wednesday, August 24th. Finally, Evercore ISI raised Royal Dutch Shell PLC from a “hold” rating to a “buy” rating and set a $64.00 price objective on the stock in a research report on Wednesday, June 8th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating, thirteen have given a buy rating and two have given a strong buy rating to the company. The company presently has an average rating of “Buy” and a consensus target price of $58.79.
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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 positive return on equity of 3.04% and a negative net margin of 2.06%. The company earned $58.42 billion during the quarter, compared to analysts’ expectations of $60.82 billion. During the same period in the prior year, the company posted $0.61 earnings per share. The company’s revenue was down 19.3% on a year-over-year basis.
The business 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 of this dividend was Wednesday, August 10th. Royal Dutch Shell PLC’s dividend payout ratio (DPR) 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.
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