Equinor ASA (NYSE:EQNR) Stock Price Declines by 5.2% - Should You Consider Selling?

Equinor ASA (NYSE:EQNR) experienced a significant decline of 5.2% in its stock price during mid-day trading on Wednesday. The stock hit a low of $23.50 before settling at $23.38 by the end of trading. Overall, 2,797,633 shares exchanged hands, indicating a 35% decrease from the average trading volume of 4,317,454 shares. In comparison, the stock had previously closed at $24.67.

Changes in Analyst Ratings

Recently, multiple brokerages provided new insights regarding Equinor ASA's stock. Notably, HSBC upgraded its rating from "hold" to "buy" in a research note published on Monday. Similarly, Barclays elevated its rating from "equal weight" to "overweight" on November 25th. Another upgrade came from Berenberg Bank, which changed its stance from "hold" to "strong-buy" in a report dated November 27th.

JPMorgan Chase & Co. also improved its rating from "underweight" to "overweight" on December 9th, while Morgan Stanley raised its classification from "equal weight" to "overweight," adjusting the target price from $25.80 to $30.90 in a report on January 7th. As it stands, one analyst rates the stock as a sell, three analysts give it a hold rating, ten analysts recommend it as a buy, and one analyst has labeled it a strong buy. According to MarketBeat.com, the average rating for Equinor ASA is "Moderate Buy," with a consensus target price set at $29.45.

Market Overview for Equinor ASA

The current market capitalization of Equinor ASA stands at $64.72 billion. The company has a price-to-earnings (PE) ratio of 7.46 and a price-to-earnings-to-growth (P/E/G) ratio of 1.27, with a beta of 0.83. Its 50-day simple moving average is around $23.94, while the 200-day moving average is $24.79. The company's quick ratio is reported at 1.38, the current ratio at 1.48, and the debt-to-equity ratio at 0.51.

In its most recent quarterly earnings announcement on February 5th, Equinor ASA posted earnings per share (EPS) of $0.63, which fell short of analysts' expectations that averaged $0.82 by $0.19. The company showed a net margin of 8.49% and a return on equity of 20.33%. Analysts forecast that Equinor ASA’s EPS for the current year will be approximately 3.38.

Dividend Announcement by Equinor ASA

The company also recently announced a quarterly dividend payment scheduled for February 28th. Shareholders who are on record as of February 14th will receive a dividend of $0.35 per share, with the ex-dividend date set for February 14th. This brings its annualized dividend to $1.40, yielding a dividend yield of 6.04%. Currently, Equinor ASA's dividend payout ratio (DPR) is 37.62%.

Institutional Investors Involvement

There has been significant activity among institutional investors regarding Equinor ASA. For instance, Van ECK Associates Corp increased its stake by 3.1% during the fourth quarter, owning now 16,288 shares valued at approximately $386,000. Jones Financial Companies Lllp raised its holdings by 10.8% in the same quarter, acquiring an additional 505 shares for a total of 5,195 shares worth $123,000.

Gallacher Capital Management LLC also boosted its position in Equinor ASA by 2.7%, now owning 19,581 shares worth $464,000 after buying an additional 518 shares. Other institutions like Allspring Global Investments Holdings LLC and Farther Finance Advisors LLC have also increased their shares in the company during recent quarters. Currently, around 5.51% of Equinor ASA's stock is held by institutional investors and hedge funds.

Overview of Equinor ASA

Equinor ASA is a prominent energy company involved in the exploration, production, transportation, refining, and marketing of petroleum and various energy forms in Norway and around the world. It operates through several segments, including Exploration & Production in Norway, International, and the USA, along with Marketing, Midstream & Processing, Renewables, and others.

Equinor, Stock, Investment