Saudi Aramco Is Selling Shares. Why It Trades Differently Than Most Oil Stocks.
Written by Emily J. Thompson, Senior Investment Analyst
Source: barron's
- Saudi Arabian Oil Co. (Aramco) is a unique oil stock with characteristics of both a growth stock and a bond-like investment.
- Aramco has the best oil acreage globally, produces crude inexpensively, and pays healthy dividends but does not experience typical energy sector market fluctuations.
- The company plans to sell more stock to the public, offering 1.545 billion shares for around $12 billion to the Saudi Arabian government.
- The sale proceeds will fund Saudi government initiatives like Vision 2030, aiming to reduce oil dependency through real estate and tourism projects.
- While U.S. investors may face challenges accessing Aramco due to trading on the Tadawul exchange, the stock's valuation and dividend yield have become more attractive compared to peers like Exxon and Chevron.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy FDS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on FDS
Wall Street analysts forecast FDS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FDS is 295.91 USD with a low forecast of 253.00 USD and a high forecast of 326.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
1 Buy
7 Hold
4 Sell
Hold
Current: 252.790
Low
253.00
Averages
295.91
High
326.00
Current: 252.790
Low
253.00
Averages
295.91
High
326.00
About FDS
FactSet Research Systems Inc. is a global financial digital platform and enterprise solutions provider. The Company's solutions deliver financial data, analytics, and open technology to global clients, including individual users. Its segments include the Americas, EMEA and Asia Pacific. It provides financial data and market intelligence on securities, companies, industries and people to enable its clients to research investment ideas and analyze, monitor and manage their portfolios. It supports various workflows, including investment research, quantitative research, portfolio management and trading, portfolio analytics, wealth management, ESG investing solutions, industry analysis and data solutions. It provides open and flexible technology offerings, including a configurable desktop and mobile platform, and comprehensive data feeds. Its technology also includes LogoIntern, a workflow tool to streamline the task of adding, organizing, and formatting logos into pitch decks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
McDonald Capital Increases Stake in FactSet Research Systems
- Stake Increase Details: McDonald Capital increased its stake in FactSet Research Systems by 86,891 shares during Q4, with an estimated transaction value of approximately $24.39 million, indicating sustained confidence in the company.
- Portfolio Performance: Following the purchase, McDonald Capital's stake in FactSet represents 3.31% of its $1.63 billion in reportable U.S. equity assets, reflecting the robustness of its overall investment portfolio.
- Company Financial Overview: FactSet reported a trailing twelve-month revenue of $2.36 billion and a net income of $599.60 million, and despite a 45% decline in stock price over the past year, the company's fundamentals remain strong with solid operating margins.
- Market Competitiveness Analysis: As a leading provider of financial data and analytics, FactSet benefits from high switching costs and historically strong renewal rates, ensuring ongoing demand among institutional clients, which underscores the resilience and long-term growth potential of its business model.
Continue Reading
McDonald Capital Increases Stake in FactSet Research Systems
- Stake Acquisition: McDonald Capital Investors disclosed a purchase of 86,891 shares of FactSet Research Systems during Q4, valued at approximately $24.39 million, indicating strong confidence in the company.
- Value Increase: Following the acquisition, McDonald Capital's position in FactSet rose to $53.90 million, an increase of $25.58 million from the previous quarter, reflecting both share additions and price appreciation.
- Portfolio Diversification: FactSet now represents 3.31% of McDonald Capital's portfolio, alongside other major holdings like Progressive and Regeneron, aligning with a long-term compounding investment strategy.
- Business Resilience: Despite a 45% decline in FactSet's stock price over the past year, the company continues to report organic revenue growth and strong free cash flow, underscoring the durability and sustainability of its business model.
Continue Reading