On Thursday, Shell PLC (LON: SHEL) said its profit in the fiscal first quarter was well above Street estimates. Its shares ended nearly 2.0% up.
Shell stock up on $4.0 billion buyback
The oil and gas behemoth reported $9.7 billion profit for its recently concluded quarter. In comparison, experts had forecast its earnings to be capped at a significantly lower $8.0 billion.
Shell stock traded up today also because the multinational announced a $4.0 billion share repurchase programme for its Q2. In the results presentation, CFO Sinead Gorman said:
“Our strong results in a volatile environment demonstrates Shell continues to focus on performance and we continue to strengthen our portfolio to delivering value to our shareholders and vital energy to the world.”
Cash flow from operations printed at $14.2 billion for the quarter, as per the earnings press release. Year-to-date, Shell shares are up 6.0% at writing.
Is it worth investing in Shell shares?
While incredibly strong by historical standards, Shell’s profit in the first quarter actually represents a small sequential decline due to the weakness in oil prices.
Still, Piper Sandler analyst Ryan Todd recently raised his price target on the Shell stock to $77 suggesting a 35% upside from here.
Also on Thursday, Equity Investment Corp revealed to have increased its exposure to this British energy company by 2.9%. CFO Gorman added:
We continue to invest in low carbon energy system [with] acquisitions of Nature Energy – largest producer of renewable natural gas in Europe and Volta – one of the largest charging networks for EVs in U.S.
Wall Street currently has a consensus “overweight” rating on Shell shares.
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