SHEL Stock Today, January 12: Buybacks and Analyst Support Power Rally
Shell stock is firmer today as investors respond to ongoing buybacks, fresh analyst support, and a new Brazil contract with Vallourec. The ADR SHEL last traded near US$71.54, up about 1.7%, within a 52-week range of US$58.55 to US$77.47. Capital returns remain in focus, with a 4.05% dividend yield and steady repurchases. For Canadians, USD exposure and global energy diversification matter. We break down the drivers behind today’s move, what the Brazil project could mean, and the near-term levels to watch.
Buybacks and analyst support lift sentiment
Shell continues to reduce its share count, with weighted average shares down about 7.26% year over year. Operating cash flow per share is US$15.79 and free cash flow per share is US$8.87, supporting a US$2.864 dividend (4.05% yield) at a 58% payout ratio. This mix sustains capital returns and helps offset commodity swings that influence Shell stock.
Analyst support remains constructive with 14 Buy, 7 Hold, and no Sells, implying a Buy consensus. The Stock Grade sits at A with a score of 83.2. Valuation looks reasonable at 14.2x TTM earnings and about 1.18x book. For income-focused holders, the 4% yield offers carry while catalysts develop.
Brazil contract extends upstream pipeline
Shell signed a products and services contract with Vallourec for a Brazil project, reinforcing upstream momentum and long-life inventory source. Capex intensity remains disciplined, with capex at 7.52% of revenue and 43.8% of operating cash flow. This helps balance buybacks and investment, a key support for Shell stock durability.
Brazil deepwater projects can add resilient, lower-unit-cost barrels over time, supporting cash flow across cycles source. For Canadian investors, Shell’s global mix complements TSX energy exposure that is more oil sands heavy. Returns are in USD, so FX can affect CAD outcomes. Stable project pipelines can smooth dividends and buybacks through oil price shifts.
Price action and technical setup to watch
SHEL trades near US$71.54, up 1.74% on the day, with a range of US$71.04 to US$71.84. It sits below the 50-day average of US$73.63 and near the 200-day at US$70.99, a spot where buyers often test conviction. The 52-week range is US$58.55 to US$77.47. These levels frame the next steps for Shell stock.
RSI is 39.9 and CCI is -125, hinting at early oversold conditions. Bollinger bands center on US$72.52 with a lower band near US$69.91 and upper at US$75.14. ADX is 15.3, showing no firm trend. A hold above the 200-day and a push through US$72.50 to US$73.60 could invite momentum.
Earnings, valuation, and risks
Next results are scheduled for February 5, 2026. We will watch buyback pace, capex guidance, LNG margins, and downstream cracks. Commentary on Brazil and overall project timing will matter. Any change in dividend policy or distribution mix could sway Shell stock direction into late Q1.
Shell’s PE is 14.16 with EV/EBITDA near 4.56. Free cash flow yield is about 12.63%, supporting ongoing buybacks and a 4.05% dividend. Net debt to EBITDA is 0.76 with interest coverage at 5.41 and debt-to-equity at 0.42. This balance sheet offers room to fund growth while returning cash.
Final Thoughts
Capital returns and a steadier project pipeline are lifting confidence in Shell stock today. Buybacks and a 4% yield provide carry, while the Brazil contract highlights a disciplined growth path that can support future cash generation. Near term, we are watching the 200-day average near US$71 and the US$72.50 to US$73.60 zone for signals of momentum follow-through. The February 5 earnings update should clarify buyback cadence, capex priorities, and LNG trends. For Canadians, consider USD exposure alongside TSX energy holdings. A balanced plan would scale around clear levels, keep position sizes in check, and reassess after earnings. This is not advice. Do your own research.
FAQs
Is Shell stock a buy right now?
Shell trades around 14x earnings with a 4% yield and positive free cash flow. Technicals show potential for a rebound if it reclaims the 50-day average. The Street skews Buy. Your decision should reflect risk tolerance, oil price views, and USD exposure.
How do SHEL buybacks support returns?
Buybacks reduce the share count, lifting earnings and cash flow per share over time. Shell’s weighted average shares fell about 7% year over year, helping offset commodity volatility. Combined with a 4% dividend, repurchases can support total returns when cash generation is stable.
What is the Brazil contract and why does it matter?
Shell signed a products and services contract with Vallourec for a Brazil project. It points to continued investment in long-life barrels that can support future cash flow. This helps maintain a balance between capital returns and a healthy pipeline of projects.
What should Canadian investors consider with Shell stock?
The ADR trades in USD, so currency moves affect CAD returns. Shell also diversifies typical TSX energy exposure with global LNG and deepwater assets. Consider position sizing, FX impacts on dividends, and key levels around the 200-day average and upcoming earnings date.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
