Shell Sees Surge in Options Trading Amid Analyst Upgrades

Shell PLC, trading under the ticker symbol NYSE:SHEL, experienced an unusual spike in options trading on Thursday. Investors purchased 117,841 call options, marking an increase of 1,445% compared to the typical daily volume of 7,626 call options. This significant activity suggests heightened investor interest in Shell’s stock.

Analysts have recently provided a range of ratings for Shell. Wall Street Zen upgraded the stock from a “hold” to a “buy” in a report dated November 8, 2023. In contrast, HSBC maintained a “hold” rating but revised its target price down to $78.30, previously set at $78.90. Scotiabank reaffirmed its “outperform” rating on October 9, 2023, while Jefferies Financial Group elevated Shell to a “strong-buy” rating on October 7, 2023.

Currently, two analysts have rated Shell with a “strong buy,” ten have given it a “buy,” and nine have issued a “hold” rating. According to MarketBeat.com, the average rating is “Moderate Buy” with a consensus price target of $79.91.

Recent Earnings and Dividend Announcement

Shell’s most recent earnings report, released on October 30, 2023, revealed earnings per share of $1.86, exceeding the consensus estimate of $1.72 by $0.14. The company reported total revenue of $68.15 billion for the quarter, falling short of the anticipated $70.50 billion. Shell’s return on equity stood at 10.67%, with a net margin of 4.93%. Analysts project that Shell will achieve earnings per share of $7.67 for the current financial year.

Additionally, Shell has announced a quarterly dividend of $0.716 per share, which will be paid on December 18, 2023. Shareholders recorded by November 14, 2023 will receive this dividend, which translates to an annualized amount of $2.86 and a yield of 3.8%. The ex-dividend date is also set for November 14, 2023. Presently, Shell’s dividend payout ratio is 58.61%.

Institutional Investor Activity

Several significant institutional investors have modified their holdings in Shell recently. Avalon Trust Co acquired a new position in the first quarter, investing approximately $25,000. Westside Investment Management Inc. also bought a new stake in Shell during the second quarter for the same amount. Truvestments Capital LLC increased its holdings by 102.9% in the first quarter, now owning 420 shares valued at $31,000 after acquiring an additional 213 shares.

Other investors include Steigerwald Gordon & Koch Inc. and Grey Fox Wealth Advisors LLC, both of which made new investments during the third quarter. Institutional investors currently hold 28.60% of Shell’s stock.

Shell operates globally across Europe, Asia, Oceania, Africa, the United States, and the Americas, focusing on various segments including Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions. The company engages in the exploration and extraction of crude oil and natural gas, as well as the marketing and transportation of these resources.

As trading activity continues to evolve, investors and analysts will closely monitor Shell’s performance and market dynamics.