Encompass Capital Advisors LLC has recently acquired a significant stake in Shell plc (NYSE:SHEL), as reported in its Form 13F filing with the SEC for the fourth quarter. The New York-based investment firm has purchased over one million shares of the energy giant, valued at approximately $64 million. Shell accounts for about 2.5% of Encompass Capital Advisors LLC’s portfolio and is now its 10th largest holding.
This news comes after Shell announced its latest quarterly earnings results last May 4th, which exceeded analysts’ expectations. The company reported an EPS of $2.78, surpassing the consensus estimate of $2.30 by an impressive $0.48. It also had a net margin of 11.20% and a return on equity of 20.91%. Looking ahead, research analysts predict that Shell will post 9.18 EPS for this year.
Shell plc operates globally as an energy and petrochemical company across five segments: Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions. Its operations involve exploring for and extracting crude oil, natural gas, and natural gas liquids, marketing and transporting oil and gas, producing gas-to-liquids fuels and other products, as well as operating the upstream and midstream infrastructure necessary to deliver gas to market.
With Encompass Capital Advisors LLC now owning a considerable stake in Shell plc, it is safe to say that the firm believes in the future growth potential of the global energy industry despite recent challenges caused by the COVID-19 pandemic. By remaining optimistic about investing in energy companies like Shell during these uncertain times, firms like Encompass may help drive further growth within this important sector while realizing long-term returns on their investments.
In conclusion, Encompass Capital Advisors LLC’s acquisition of more than one million shares worth millions in value from Shell plc underscores not only their confidence in this iconic energy company, but also the continued importance of the energy sector in today’s world. As more investors seek sustainable and profitable investment opportunities, companies like Shell will play an increasingly vital role in meeting global energy needs for many years to come.
[bs_slider_forecast ticker=”SHEL”]
Shell sees hedge fund interest rise as institutional investors increase stake in the company
Shell (NYSE:SHEL) has recently seen several prominent hedge funds make modifications to their holdings. Institutional investors now own 7.74% of the company’s stock, following investments made by companies such as Acadian Asset Management LLC and Vontobel Holding Ltd in the first quarter of 2017. Shell operates as an energy and petrochemical firm with a market capitalisation of $201.51 billion, with shares that opened at $57.82 on Tuesday. The firm has a price-to-earnings ratio of 4.79 and boasts a beta of 0.65, whilst trading on a PEG ratio of 0.68.
The company navigates diverse geographies including Europe, Asia, Oceania, Africa, the US and Rest of the Americas across its Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions business units. Its operations include crude oil and natural gas exploration extractions; oil and gas marketing; production of fuels like gas-to-liquids; upstream and midstream infrastructure deployment; delivery management for markets.
Shareholders will benefit from a quarterly dividend of $0.575 per share payable June 26th to those holding records as at May 19th making up an annualised dividend payout ratio.$2.30 equalling a yield of approximately 3.98%. Reflecting sentiment towards shares in Shell amongst analysts Bloomberg.com reports two Sell ratings along with two Hold ratings being given by researchers whilst Goldman Sachs Group upgraded its position from Neutral to Buy.
In summary, recent activity shows increased investment interest in Shell by significant stakeholders which adds momentum to its global operation standing backed by institutional hedge fund support thereby bolstering investor confidence in this respected energy brand.