NEW YORK (TheStreet) -- Shares of Exxon Mobil Corp. (XOM) - Get Report are down 1.47% to $91.68 in early trading this morning after it was reported that Warren Buffett's Berkshire Hathaway (BRK.A) - Get Report exited a $3.7 billion investment in the energy company as oil prices decline, according to Bloomberg.
Berkshire has "not really had the hot hand in energy," Fadel Gheit, an analyst for Oppenheimer & Co. in New York told Bloomberg. "The whole energy sector obviously is now traded in completely different circumstances than they were only a year ago."
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Exxon shares have outperformed many peers in recent months, losing only about 15% of their value from June through January as oil prices slumped by more than half, according to Reuters.
It is unclear why Buffett appeared to have soured on Exxon, or whether Berkshire made money on the investment, Reuters said
Exxon Mobil had no comment.
Separately, TheStreet Ratings team rates EXXON MOBIL CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXXON MOBIL CORP (XOM) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strongest point has been its strong cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 20.6%. Since the same quarter one year prior, revenues fell by 17.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- In its most recent trading session, XOM has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- EXXON MOBIL CORP's earnings per share declined by 18.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, EXXON MOBIL CORP increased its bottom line by earning $7.60 versus $7.37 in the prior year. For the next year, the market is expecting a contraction of 53.1% in earnings ($3.56 versus $7.60).
- The change in net income from the same quarter one year ago has exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has decreased by 21.3% when compared to the same quarter one year ago, dropping from $8,350.00 million to $6,570.00 million.
- Net operating cash flow has decreased to $7,499.00 million or 26.53% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: XOM Ratings Report