Exxon Mobil shares fall for a fifth session in a row on Thursday, RBC Capital revises down price target for the stock

Shares of Exxon Mobil Corporation (XOM) retreated to lows unseen in 7 1/2 weeks on Thursday, after RBC Capital revised down its price target for the stock due to exhausted potential of share buybacks in the future.

Exxon Mobil shares closed lower for a fifth consecutive trading session on Thursday. The stock went down 0.80% ($0.65) to $80.56, after touching an intraday low at $80.15, or a price level not seen since September 25th ($79.98).

In the week ended on November 12th the shares of the energy company lost 0.29% of their market value compared to a week ago, which marked a second consecutive period of decrease.

The stock has extended its loss to 3.35% so far during the current month, following a 1.67% surge in October. The latter has been a second straight month of gains.

For the entire past year, the shares of the NYSE-listed energy giant gained 15.79%. On the other hand, the stock has retreated 10.75% so far in 2017.

RBC analyst Biraj Borkhataria reportedly cut his price target for Exxon Mobil to $85 from $90, while maintaining a ”Sector Perform” rating on the stock.

According to Borkhataria, as share buybacks have represented a core part of Exxon shareholders’ returns in the past, the growth potential of such operations is seen as rather limited.

“We see limited scope for Exxon to raise the share buyback program materially going forward, with surplus cash likely to be utilized in asset acquisitions”, RBC’s Borkhataria wrote in a client note, cited by MarketWatch.

“On an all-in basis, we see Exxon trading in line with the market, and thus materially less attractive than in prior years”, he added.

According to CNN Money, the 22 analysts, offering 12-month forecasts regarding Exxon Mobil’s stock price, have a median target of $83.50, with a high estimate of $100.00 and a low estimate of $70.00. The median estimate is a 3.65% surge compared to the closing price of $80.56 on November 16th.

The same media also reported that 14 out of 27 surveyed investment analysts had rated Exxon Mobil’s stock as “Hold”, while 7 – as “Buy”. On the other hand, 6 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Exxon Mobil stock are presented as follows:

R1 – $80.62
R2 – $80.69
R3 (Range Resistance – Sell) – $80.75
R4 (Long Breakout) – $80.94
R5 (Breakout Target 1) – $81.16
R6 (Breakout Target 2) – $81.25

S1 – $80.50
S2 – $80.43
S3 (Range Support – Buy) – $80.37
S4 (Short Breakout) – $80.18
S5 (Breakout Target 1) – $79.96
S6 (Breakout Target 2) – $79.87

By using the traditional method of calculation, the weekly levels of importance for Exxon Mobil Corporation (XOM) are presented as follows:

Central Pivot Point – $83.17
R1 – $83.91
R2 – $84.89
R3 – $85.63
R4 – $86.38

S1 – $82.19
S2 – $81.45
S3 – $80.47
S4 – $79.50