08.07.2025

Massive Decline in Esso Stock: Causes and Effects

Esso Stock: A Drastic Price Collapse

On July 8, 2025, Esso experienced a massive decline of nearly 30%, dropping to about 100 euros. This sharp decline is largely attributed to the stock’s ex-dividend listing. The ex-dividend date was July 8, 2025, and the dividend will be paid out on July 10, 2025. With a dividend of 53 euros per share, and possibly an additional payout of up to 63.36 euros, the dividend yield is significant.

Background of the Price Development

  • Ex-Dividend Effect: On the ex-dividend date, a stock’s price is reduced by the amount of the dividend, explaining the drastic price drop without any operational issues in the company.
  • Sale Offer from ExxonMobil: ExxonMobil plans to distribute a special dividend after selling about 82.9% of its shares in North Atlantic. The acquisition price is set at 149.19 euros per share before the payout.
  • Long-term Performance: The performance of Esso stock has been weak over the last twelve months, with a decline of about 38.85%.

Current Market Situation

The price-to-sales ratio (P/S) of Esso stock is approximately 0.07, indicating potential undervaluation. The shares are traded in Frankfurt, Berlin, and Munich, with prices varying slightly.

Outlook for Investors

Investors should pay attention to market conditions and planned transactions. The strong price reaction could offer short-term buying opportunities, yet the long-term investment strategy should align with operational results and the general market trend.