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 report released 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.”
A number of other equities analysts also recently weighed in on RDS.A. Vetr downgraded shares of Royal Dutch Shell PLC from a “strong-buy” rating to a “hold” rating and set a $50.94 target price for the company. in a research note on Monday, June 6th. Evercore ISI raised shares of Royal Dutch Shell PLC from a “hold” rating to a “buy” rating and set a $64.00 target price for the company in a research note on Wednesday, June 8th. Jefferies Group reaffirmed a “buy” rating on shares of Royal Dutch Shell PLC in a research note on Thursday, June 30th. Simmons reaffirmed an “overweight” rating on shares of Royal Dutch Shell PLC in a research note on Thursday, August 11th. Finally, RBC Capital Markets downgraded shares of Royal Dutch Shell PLC from an “outperform” rating to a “sector perform” rating in a research note on Monday, August 1st. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating, thirteen have issued a buy rating and two have given a strong buy rating to the company. Royal Dutch Shell PLC presently has an average rating of “Buy” and an average target price of $58.79.
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Royal Dutch Shell PLC (NYSE:RDS.A) last posted its earnings results on Thursday, July 28th. The company reported $0.06 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.53 by $0.47. The firm had revenue of $58.42 billion for the quarter, compared to analysts’ expectations of $60.82 billion. Royal Dutch Shell PLC had a positive return on equity of 3.04% and a negative net margin of 2.06%. The business’s revenue for the quarter was down 19.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.61 earnings per share.
The firm also recently declared a quarterly dividend, which was paid on Monday, September 19th. Stockholders of record on Friday, August 12th were paid a dividend of $0.799 per share. 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 presently -201.26%.
Royal Dutch Shell PLC Company Profile
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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