Equinor ASA (NYSE:EQNR) Shares Decline After Unfavorable Earnings Report

Equinor ASA (NYSE:EQNR) experienced a significant decrease in its share price at the market's opening on Wednesday following the announcement of weaker-than-expected quarterly earnings. The stock closed the previous day at $24.78 but started trading at $23.87. As of the last recorded trade, Equinor ASA shares were at $23.78, with a total trading volume of 796,054 shares.

In its latest earnings report, Equinor ASA reported earnings per share of $0.63 for the quarter, which was below analysts' expectations of $0.82, resulting in a miss of $0.19. The company has reported a return on equity of 19.97%, alongside a net profit margin of 8.95%.

Dividend Announcement from Equinor ASA

Additionally, Equinor ASA has recently announced a quarterly dividend payment, scheduled for release on Friday, February 28. Shareholders who are on the record as of Friday, February 14, will receive a dividend of $0.35. The ex-dividend date is also set for Friday, February 14. This dividend corresponds to an annualized amount of $1.40, yielding 5.89%. Currently, the payout ratio for Equinor ASA stands at 35.89%.

Analysts Predict Growth for Equinor ASA

Recent assessments from various financial institutions regarding Equinor ASA have shown some optimism. StockNews.com upgraded Equinor shares from a "buy" to a "strong-buy" rating on January 29. Similarly, Berenberg Bank and Redburn Atlantic have also made upgrades from "hold" and "neutral" ratings, respectively, to "strong-buy" and "buy" ratings over recent months. Barclays and Morgan Stanley have further enhanced their outlooks by moving from "equal weight" to "overweight" ratings, with Morgan Stanley increasing its price target for Equinor from $25.80 to $30.90. In total, analysts have given one sell rating, three hold ratings, four buy ratings, and two strong buy ratings for Equinor ASA. The average consensus rating is classified as "Moderate Buy" with a price target of $29.45 according to MarketBeat.com.

Institutional Investors' Activity in Equinor ASA

In terms of institutional investment, several large investors have recently adjusted their positions in Equinor ASA. Todd Asset Management LLC increased its holdings by 6.5% during the fourth quarter, acquiring an additional 10,828 shares to total 178,432 shares valued at $4,227,000. Y Intercept Hong Kong Ltd made a noteworthy increase to its shares by 260.0% in the same quarter, bringing its total to 55,311 shares valued at $1,310,000, following the purchase of 39,948 additional shares. Additionally, new positions were established by Union Bancaire Privee UBP SA and Callan Capital LLC at values of approximately $115,000 and $222,000 respectively. Other entities such as Drum Hill Capital LLC also made new investments worth about $4,023,000. In total, institutional investors hold approximately 5.51% of Equinor ASA's stock.

Equinor ASA Stock Metrics

The company's current stock performance metrics reflect a debt-to-equity ratio of 0.51, a quick ratio of 1.38, and a current ratio of 1.48. Furthermore, Equinor ASA boasts a market capitalization of $66.41 billion, a price-to-earnings ratio of 7.29, and a price-to-earnings-growth ratio of 1.31, with a beta of 0.83. The forty-day moving average price for the shares is $23.99, while the two-hundred-day moving average stands at $24.88.

About Equinor ASA

Equinor ASA is a prominent energy company that specializes in the exploration, production, transportation, refining, and marketing of petroleum and various energy forms both in Norway and internationally. The company operates through several segments, including Exploration & Production Norway, Exploration & Production International, Exploration & Production USA, Marketing, Midstream & Processing, Renewables, and others.

Final Thoughts

Investors and stakeholders will need to carefully monitor the company’s performance following the disappointing earnings announcement as well as changes and trends in market sentiment among analysts and institutional investors.

Equinor, Earnings, Dividend