Scotiabank Has Bearish Estimate for Shell FY2026 Earnings

Shell PLC Unsponsored ADR (NYSE:SHEL) – Scotiabank cut their FY2026 earnings per share (EPS) estimates for Shell in a research note issued to investors on Tuesday, July 15th. Scotiabank analyst P. Cheng now expects that the energy company will earn $5.20 per share for the year, down from their prior estimate of $5.70. Scotiabank has a “Outperform” rating on the stock. The consensus estimate for Shell’s current full-year earnings is $7.67 per share.

Shell (NYSE:SHEL) last posted its quarterly earnings data on Friday, May 2nd. The energy company reported $1.84 EPS for the quarter, topping the consensus estimate of $1.54 by $0.30. Shell had a return on equity of 11.71% and a net margin of 4.75%. The firm had revenue of $69.23 billion for the quarter, compared to the consensus estimate of $79.18 billion. During the same quarter last year, the company earned $2.40 earnings per share.

Several other analysts have also recently issued reports on SHEL. Piper Sandler increased their target price on Shell from $83.00 to $84.00 and gave the stock an “overweight” rating in a research report on Tuesday. TD Securities reiterated a “buy” rating on shares of Shell in a research report on Friday, April 4th. Royal Bank Of Canada reiterated an “outperform” rating on shares of Shell in a research report on Wednesday, March 26th. TD Cowen cut their target price on Shell from $82.00 to $76.00 and set a “buy” rating for the company in a research report on Tuesday, April 8th. Finally, Santander cut Shell to a “neutral” rating in a research report on Friday, July 11th. Three research analysts have rated the stock with a hold rating, ten have issued a buy rating and two have given a strong buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $78.69.

Shell Stock Down 0.0%

NYSE SHEL opened at $70.32 on Friday. The company has a quick ratio of 1.08, a current ratio of 1.32 and a debt-to-equity ratio of 0.36. Shell has a 52 week low of $58.55 and a 52 week high of $74.46. The stock’s 50-day moving average price is $69.39 and its 200-day moving average price is $67.46. The company has a market capitalization of $209.08 billion, a P/E ratio of 16.20, a price-to-earnings-growth ratio of 1.98 and a beta of 0.40.

Hedge Funds Weigh In On Shell

Several institutional investors have recently added to or reduced their stakes in the company. Brighton Jones LLC boosted its holdings in shares of Shell by 51.7% in the 4th quarter. Brighton Jones LLC now owns 7,463 shares of the energy company’s stock worth $468,000 after purchasing an additional 2,545 shares during the period. Barclays PLC boosted its holdings in shares of Shell by 136.2% in the 4th quarter. Barclays PLC now owns 7,824 shares of the energy company’s stock worth $490,000 after purchasing an additional 4,512 shares during the period. Charles Schwab Investment Management Inc. boosted its holdings in shares of Shell by 8.1% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 199,856 shares of the energy company’s stock worth $12,521,000 after purchasing an additional 14,937 shares during the period. Allspring Global Investments Holdings LLC boosted its holdings in shares of Shell by 4.4% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 19,323 shares of the energy company’s stock worth $1,401,000 after purchasing an additional 815 shares during the period. Finally, Merit Financial Group LLC lifted its stake in shares of Shell by 100.9% during the 1st quarter. Merit Financial Group LLC now owns 11,534 shares of the energy company’s stock worth $845,000 after acquiring an additional 5,794 shares during the last quarter. Hedge funds and other institutional investors own 28.60% of the company’s stock.

Shell announced that its Board of Directors has initiated a share buyback program on Friday, May 2nd that allows the company to buyback $3.50 billion in shares. This buyback authorization allows the energy company to repurchase up to 1.8% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its shares are undervalued.

Shell Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 23rd. Shareholders of record on Friday, May 16th were issued a dividend of $0.716 per share. This represents a $2.86 annualized dividend and a yield of 4.07%. The ex-dividend date was Friday, May 16th. Shell’s dividend payout ratio is presently 65.90%.

About Shell

Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and Rest of the Americas. The company operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions segments. It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure to deliver gas to market.