Shell (NYSE:SHEL) to Repurchase $5 billion in Outstanding Shares

Shell (NYSE:SHEL) announced that its Board of Directors has initiated a share buyback program on Thursday, October 29th, RTT News reports. The company plans to repurchase $5 billion in outstanding shares. This repurchase authorization allows the energy company to repurchase up to 1.7% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of research firms have commented on SHEL. Morgan Stanley raised Shell from an “equal weight” rating to an “overweight” rating and set a $101.30 price target on the stock in a report on Thursday, September 3rd. Piper Sandler upped their price objective on Shell from $89.00 to $100.00 and gave the stock a “neutral” rating in a research note on Thursday, September 3rd. HSBC reissued a “buy” rating on shares of Shell in a research note on Friday, September 25th. Barclays reissued an “overweight” rating on shares of Shell in a report on Monday, October 5th. Finally, TD Cowen upped their price target on Shell from $107.00 to $115.00 and gave the stock a “buy” rating in a research note on Monday, September 28th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $106.63.

Shell Trading Up 2.5%

Shares of NYSE:SHEL traded up $2.60 on Thursday, hitting $107.78. 7,430,217 shares of the company’s stock were exchanged, compared to its average volume of 6,052,205. The business’s 50 day simple moving average is $97.80 and its two-hundred day simple moving average is $87.99. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.43 and a quick ratio of 1.12. The stock has a market capitalization of $308.78 billion, a price-to-earnings ratio of 11.74, a price-to-earnings-growth ratio of 0.86 and a beta of 0.10. Shell has a 12 month low of $68.63 and a 12 month high of $108.43.

Shell (NYSE:SHEL) last posted its quarterly earnings results on Friday, October 30th. The energy company reported $3.86 EPS for the quarter, topping the consensus estimate of $3.60 by $0.26. Shell had a net margin of 8.55% and a return on equity of 14.34%. The company had revenue of $92.85 billion for the quarter, compared to the consensus estimate of $93.25 billion. Analysts anticipate that Shell will post 11.94 EPS for the current fiscal year.

Key Shell News

Here are the key news stories impacting Shell this week:

• Positive Sentiment: Profit nearly doubled year over year: Shell reported third-quarter adjusted earnings of approximately $10.8 billion, exceeding expectations, while adjusted EBITDA reached $22.7 billion. Strong operational performance and elevated energy-market disruption supported the results. Reuters article
• Positive Sentiment: Record refining margins drove the earnings beat: Refining and fuel-market spreads surged, helping offset lower realized oil and liquids prices compared with the second quarter. Shell also maximized diesel production amid a supply crunch, benefiting its downstream operations. CNBC article
• Positive Sentiment: Shareholder returns increased: Shell announced a fresh $5 billion share-buyback program, supported by stronger earnings and cash flow. The board also declared a third-quarter interim dividend of $0.3906 per ordinary share, reinforcing the company’s capital-return appeal. 247WallSt article
• Positive Sentiment: Results surpassed analyst expectations: Shell reported quarterly EPS of $3.86 versus the $3.60 consensus estimate, although revenue of $92.85 billion was slightly below the $93.25 billion forecast. Shell press release
• Neutral Sentiment: Shell announced the intended 2027 quarterly dividend timetable, with the next ADS ex-dividend date scheduled for February 19, 2027, and payment scheduled for March 30, 2027. Shell dividend timetable
• Negative Sentiment: The quarter benefited heavily from unusually high refining margins and geopolitical disruption. Analysts cautioned that refining profitability can normalize, while lower upstream commodity prices could limit the durability of current earnings. Motley Fool article

Shell Company Profile

Shell plc is a global energy company headquartered in London, England. Its operations span the energy value chain, including the exploration, production, processing, trading and marketing of oil and natural gas. The company is also a major participant in liquefied natural gas (LNG), refining, chemicals and energy-related products.

Shell sells fuels, lubricants and other petroleum products through branded retail and commercial businesses, while also providing services to industrial, marine and aviation customers.