Zacks Investment Research lowered shares of Royal Dutch Shell PLC (NYSE:RDS.A) from a hold rating to a sell rating in a report issued on Tuesday.

According to Zacks, “Predictably, the commodity price slump has adversely affected Royal Dutch Shell’s earnings and cash flows, particularly at its upstream unit. Furthermore, lost reserves/production from the group's assets in Nigeria amid militant attacks and heightened risk related to the company’s remaining operations in the country cannot be ignored either. We also expect Shell ADRs to remain soft due to its major natural gas focus and lofty capital spending. Moreover, the $50 billion BG acquisition is likely to put pressure on the company's balance sheet. Considering these headwinds, we expect Shell to perform below the industry, which gives investors little reason to hold the stock.”

Analyst Recommendations for Royal Dutch Shell PLC (NYSE:RDS.A)

RDS.A has been the subject of several other research reports. Vetr lowered shares of Royal Dutch Shell PLC from a strong-buy rating to a hold rating and set a $50.94 price objective for the company. in a research note on Monday, June 6th. Evercore ISI raised shares of Royal Dutch Shell PLC from a hold rating to a buy rating and set a $64.00 price objective for the company in a research note on Wednesday, June 8th. BMO Capital Markets raised shares of Royal Dutch Shell PLC from a market perform rating to an outperform rating in a research note on Wednesday, June 15th. Morgan Stanley lowered shares of Royal Dutch Shell PLC from an overweight rating to an equal weight rating in a research note on Thursday, June 30th. Finally, Jefferies Group reissued a buy rating on shares of Royal Dutch Shell PLC in a research note on Thursday, June 30th. One analyst has rated the stock with a sell rating, six have assigned a hold rating, thirteen have issued a buy rating and two have issued a strong buy rating to the stock. The company presently has an average rating of Buy and a consensus price target of $58.79.

Royal Dutch Shell PLC (NYSE:RDS.A) last announced its quarterly earnings results on Thursday, July 28th. The company reported $0.06 earnings per share for the quarter, missing analysts’ consensus estimates of $0.53 by $0.47. Royal Dutch Shell PLC had a negative net margin of 2.06% and a positive return on equity of 3.04%. The company had revenue of $58.42 billion for the quarter, compared to analyst estimates of $60.82 billion. During the same quarter in the prior year, the business earned $0.61 earnings per share. Royal Dutch Shell PLC’s revenue was down 19.3% on a year-over-year basis.

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 19th. Shareholders of record on Friday, August 12th were issued a dividend of $0.799 per share. The ex-dividend date was Wednesday, August 10th. This represents a $3.20 dividend on an annualized basis and a yield of Infinity. Royal Dutch Shell PLC’s payout ratio is currently -201.26%.

Royal Dutch Shell PLC Company Profile

Royal Dutch Shell plc (Shell) is an independent oil and gas company. The Company explores for crude oil and natural gas across the world, both in conventional fields and from sources, such as tight rock, shale and coal formations. The Company is engaged in the principal aspects of the oil and gas industry in approximately 70 countries.

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