Equinor ASA Shares Decline After Earnings Report

Equinor ASA (NYSE:EQNR) saw its share price decline significantly before the market opened on Wednesday, following the release of disappointing quarterly earnings. The company's stock closed at $24.78 but gapped down, opening at $23.87. As of the latest trading, shares were priced at $23.78, with a trading volume of 796,054 shares.

For the reported quarter, Equinor ASA's earnings per share were $0.63, which fell short of analysts' consensus estimate of $0.82 by $0.19. The company reported a return on equity of 19.97% and a net margin of 8.95%.

Dividend Announcement

Equinor ASA has also declared a quarterly dividend, slated to be paid on Friday, February 28. Shareholders on record as of February 14 will receive a dividend of $0.35. The ex-dividend date is February 14, and this will amount to an annualized dividend of $1.40, yielding 5.89% based on current share prices. The company's payout ratio is 35.89%.

Outlook from Wall Street Analysts

Several brokerage firms have responded to Equinor's performance with various upgrades. StockNews.com upgraded the company from a "buy" to a "strong-buy" rating. Berenberg Bank similarly increased its rating from "hold" to "strong-buy." Additionally, Redburn Atlantic raised its rating from "neutral" to "buy," while Barclays upgraded it from "equal weight" to "overweight." Morgan Stanley also improved its rating from "equal weight" to "overweight" and revised its price target for Equinor from $25.80 to $30.90. Currently, one analyst rates the stock as a sell, three maintain hold ratings, four are categorized as buys, and two indicate a strong buy. MarketBeat.com indicates that the consensus rating for Equinor ASA is "Moderate Buy" with an average price target of $29.45.

Institutional Buying Patterns

Recent trading patterns show several large investors adjusting their stakes in Equinor ASA. Todd Asset Management LLC increased its position by 6.5% in the last quarter, now owning 178,432 shares valued at approximately $4.23 million. Y Intercept Hong Kong Ltd boosted its stake by 260%, acquiring an additional 39,948 shares valued at around $1.31 million. Other new stakes included Union Bancaire Privee UBP SA at about $115,000, Callan Capital LLC also at approximately $222,000, and Drum Hill Capital LLC with a new stake valued at around $4.02 million. In total, 5.51% of Equinor's stock is owned by institutional investors and hedge funds.

Financial Metrics of Equinor ASA

Equinor ASA has a debt-to-equity ratio of 0.51, with a quick ratio of 1.38 and a current ratio of 1.48. The company boasts a market capitalization of $66.41 billion, a price-to-earnings (P/E) ratio of 7.29, and a price-to-earnings-growth (PEG) ratio of 1.31. The fifty-day moving average price for the stock is $23.99, while the two-hundred-day moving average stands at $24.88.

Company Overview

Equinor ASA is an energy company engaged in exploration, production, transportation, refining, and marketing of petroleum and other energy forms both in Norway and globally. It operates through multiple segments including Exploration & Production Norway, Exploration & Production International, Exploration & Production USA, Marketing, Midstream & Processing, Renewables, and other operations.

Conclusion

The recent earnings report and subsequent share price decline highlight the market's response to Equinor ASA's financial performance. While some analysts maintain a positive outlook, the company's short-term challenges could impact investor sentiment.

Equinor, Earnings, Dividend