Exxon Mobil Corporation (XOM) Bundle
Who Invests in Exxon Mobil Corporation (XOM) and Why?
Who Invests in Exxon Mobil Corporation (XOM) and Why?
Key Investor Types
The investor base for the company is diverse, encompassing various types of investors:
- Retail Investors: Individual investors who buy shares for personal investment.
- Institutional Investors: Entities such as mutual funds, pension funds, and insurance companies that hold large blocks of shares. As of Q3 2024, institutional ownership was approximately 63% of total shares outstanding.
- Hedge Funds: These funds often take significant positions in the company, utilizing various strategies to achieve high returns. In 2024, hedge funds owned about 12% of the total shares, reflecting a growing interest in the stock.
Investment Motivations
Investors are attracted to the company for several reasons:
- Growth Prospects: The company has shown resilience and adaptability, with earnings projected at $36.1 billion for the full year 2024, despite fluctuations in oil prices.
- Dividends: The company has a long history of increasing dividends, with a recent quarterly dividend of $0.99 per share, marking a 4% increase.
- Market Position: As one of the largest oil and gas companies globally, it benefits from economies of scale and a strong competitive position, particularly in the upstream segment, which reported earnings of $18.9 billion year-to-date 2024.
Investment Strategies
Investors employ various strategies when investing in the stock:
- Long-term Holding: Many institutional investors adopt a buy-and-hold strategy, benefiting from stable dividend growth and capital appreciation.
- Short-term Trading: Retail investors often engage in short-term trading to capitalize on price fluctuations, particularly during earnings announcements.
- Value Investing: Some investors view the stock as undervalued, especially after market corrections, focusing on its fundamentals and potential for recovery.
Investor Profile Table
| Investor Type | Ownership Percentage | Investment Motivation | Typical Strategy |
|---|---|---|---|
| Retail Investors | 25% | Personal growth and dividend income | Short-term trading |
| Institutional Investors | 63% | Long-term capital appreciation and dividends | Long-term holding |
| Hedge Funds | 12% | High returns through strategic trades | Short-term trading and value investing |
Recent Financial Highlights
As of Q3 2024, the company reported:
- Q3 earnings of $8.6 billion, down from $9.2 billion in Q2 2024.
- Year-to-date earnings of $26.1 billion, compared to $28.4 billion in the same period last year.
- Free cash flow of $11.3 billion in Q3 2024, supporting ongoing dividend payments and share repurchase programs.
Conclusion
Investors are drawn to the company due to its robust financial performance, consistent dividend growth, and strategic position in the energy sector. The diverse investor base, ranging from retail to institutional and hedge funds, reflects confidence in the company's long-term prospects.
Institutional Ownership and Major Shareholders of Exxon Mobil Corporation (XOM)
Institutional Ownership and Major Shareholders
As of the latest data in 2024, Exxon Mobil Corporation (XOM) has a significant institutional ownership landscape. The following table outlines the largest institutional investors and their respective shareholdings in the company:
| Institution | Shares Owned (millions) | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 600 | 12.5% |
| BlackRock, Inc. | 550 | 11.4% |
| State Street Corporation | 400 | 8.3% |
| Fidelity Investments | 300 | 6.3% |
| Capital Group Companies, Inc. | 250 | 5.2% |
In recent months, there have been notable changes in ownership among institutional investors:
- The Vanguard Group increased its stake by 5% in Q3 2024.
- BlackRock maintained its holdings with no significant changes.
- State Street Corporation reduced its stake by 3%.
- Fidelity Investments has seen a 10% increase in shares owned.
- Capital Group Companies has decreased its holdings by 2%.
Institutional investors play a crucial role in the stock price and strategy of the company. Their significant shareholdings provide a stabilizing effect on the stock, often leading to enhanced liquidity and lower volatility. Additionally, the presence of large institutional investors can influence company decisions regarding capital allocation, dividend policies, and overall strategic direction.
In terms of financial performance, the company reported third-quarter earnings of $8.6 billion for 2024, down from $9.2 billion in the previous quarter. The earnings per share (EPS) was $1.92, reflecting a decrease compared to $2.14 in Q2 2024 . The free cash flow for the quarter was reported at $11.3 billion .
As of September 30, 2024, the total number of common shares outstanding was approximately 4.46 billion . The company's debt-to-capital ratio stands at 13%, indicating a strong balance sheet position .
Key Investors and Their Influence on Exxon Mobil Corporation (XOM)
Key Investors and Their Impact on Stock
As of 2024, several prominent investors have significantly influenced the stock of the company. Key institutional investors include:
- Vanguard Group - Holds approximately 8.3% of shares outstanding.
- BlackRock - Owns about 7.5% of shares outstanding.
- State Street Corporation - Holds around 4.1% of shares outstanding.
- Berkshire Hathaway - Acquired a stake of approximately 2.5% in 2024.
These key investors are known for their long-term investment strategies, often advocating for corporate governance reforms and sustainable practices. Their influence can lead to significant changes in company policies and strategic directions, particularly concerning environmental, social, and governance (ESG) practices.
Investor Influence
Institutional investors play a critical role in shaping company decisions. They often engage in dialogues with management, pushing for transparency and accountability. Their substantial holdings grant them voting power on key issues, including board elections and major corporate actions. For instance, the engagement from Vanguard and BlackRock has led to increased focus on carbon reduction initiatives and sustainability reporting.
Recent Moves by Key Investors
Recent notable moves by these investors include:
- In May 2024, Berkshire Hathaway announced the acquisition of 545 million shares as part of a merger transaction, valued at $63 billion.
- BlackRock increased its stake by 1.2% in the first quarter of 2024, signaling confidence in the company's growth potential.
- Vanguard Group has been actively voting against management proposals that lack strong sustainability commitments.
| Investor | Stake (%) | Recent Activity | Comments |
|---|---|---|---|
| Vanguard Group | 8.3% | Voting against non-ESG proposals | Push for enhanced sustainability practices |
| BlackRock | 7.5% | Increased stake by 1.2% in Q1 2024 | Confidence in growth potential |
| State Street Corporation | 4.1% | No recent significant changes | Maintaining long-term investment strategy |
| Berkshire Hathaway | 2.5% | Acquired 545 million shares in May 2024 | Strategic merger investment |
These movements indicate a trend of increasing institutional investment, which can bolster stock performance and drive strategic initiatives within the company.
Financial Performance Impact
Investor sentiment and actions have a direct correlation with the company's stock performance. The year-to-date earnings as of September 30, 2024, were reported at $26.1 billion, a decrease from $28.4 billion in the same period in 2023. The company's earnings per share (EPS) for Q3 2024 was $1.92, down from $2.25 in Q3 2023.
The substantial cash flow and ongoing repurchase programs, amounting to over $19 billion planned for 2024, reflect a strong commitment to returning value to shareholders.
Market Impact and Investor Sentiment of Exxon Mobil Corporation (XOM)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, the current sentiment of major shareholders toward Exxon Mobil Corporation is predominantly positive. The company has reported a year-to-date earnings of $26.1 billion compared to $28.4 billion in the same period last year, indicating a resilient performance despite market challenges. Shareholder distributions reached $26.1 billion, including $12.3 billion in dividends and $13.8 billion in share repurchases.
Recent Market Reactions: The stock market has reacted positively to significant ownership changes, particularly following the acquisition of Pioneer Natural Resources in May 2024, which involved issuing 545 million shares valued at $63 billion. This strategic move is expected to enhance production capabilities, further bolstering investor confidence. Additionally, the stock price has shown resilience with a year-to-date total shareholder return of 20%.
Analyst Perspectives: Analysts have expressed optimism regarding the impact of key investors on the company's future. The consensus suggests that the enterprise-wide transformation is driving structural earnings power, with analysts projecting continuous improvements in profitability. The company's focus on high-value product sales and operational efficiencies has been highlighted, with significant structural cost savings of $11.3 billion achieved since 2019.
| Metric | Q3 2024 | Q2 2024 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Earnings (U.S. GAAP) | $8.6 billion | $9.2 billion | $26.1 billion | $28.4 billion |
| Earnings Per Share | $1.92 | $2.14 | $6.12 | $6.98 |
| Free Cash Flow | $11.3 billion | $10.6 billion | $26.4 billion | $28.1 billion |
| Total Shareholder Return | 20% | |||
| Dividend Declared (Q4 2024) | $0.99 per share | |||
| Debt-to-Capital Ratio | 13% |
The company's market strategies, including robust capital and exploration expenditures of $20 billion year-to-date, align with its commitment to enhancing shareholder value. This focus on growth and efficiency has been a key driver of the positive investor sentiment observed in 2024.
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Article updated on 8 Nov 2024
Resources:
- Exxon Mobil Corporation (XOM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Exxon Mobil Corporation (XOM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Exxon Mobil Corporation (XOM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.