NEW YORK (TheStreet) -- Shares of Royal Dutch Shell Plc (RDS.A) are up 0.09% to $80.84 in pre-market trade after the oil and gas company announced that it was selling a major stake in Australia's Woodside Petroleum (WOPEY) for $5.7 billion in a move to increase profits, the Wall Street Journal reports.
Shell today said it would sell a 9.5% stake to institutional investors at a small discount to Woodside's closing share price yesterday, and also agreed to sell a further 9.5% interest back to Woodside, the Journal noted.
TheStreet Ratings team rates ROYAL DUTCH SHELL PLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROYAL DUTCH SHELL PLC (RDS.A) a BUY. This is driven by a number of 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 strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. 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: