French oil and gas company TotalEnergies (TTE) has been slapped with a $48 million fine by the U.S. Commodity Futures Trading Commission (CFTC). The regulatory body accused the company’s trading unit, TOTSA TotalEnergies Trading SA, of attempting to manipulate the gasoline futures market.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The CFTC alleges that TOTSA was engaged in manipulative trading practices in 2018 by attempting to artificially lower the price of EBOB, a type of gasoline used in European cars. The company reportedly sold large quantities of physical EBOB at prices below what buyers were willing to pay, aiming to profit from its short position in EBOB-linked futures.
Failure to Submit WhatsApp Communications
It is worth mentioning that the CFTC criticized the company for failing to produce certain WhatsApp communications, which the regulator deemed relevant to the investigation. This highlights a growing trend among U.S. regulators to scrutinize off-channel communications.
The CFTC accused TOTSA traders of using WhatsApp to conspire with EBOB brokers. The agency believes the company intended to lower the benchmark price of winter-grade EBOB to boost TotalEnergies’ overall trading profits.
Is TTE Stock a Good Buy?
TotalEnergies’ focus on reducing its carbon footprint by investing in renewable energy, improving energy efficiency, and capturing carbon dioxide is impressive. However, its bottom line remains under pressure due to fluctuations in oil and gas prices and increasingly strict environmental regulations.
On TipRanks, TTE has a Hold consensus rating based on two Hold ratings assigned by analysts in the past three months. The analysts’ average price target on TotalEnergies stock of $79.50 implies 13.3% upside potential. Shares of the company have gained 12.1% in the past six months.
Interestingly, investors considering TTE stock could follow J.P. Morgan (JPM) analyst Christian Malek. He is the best analyst covering the stock (in a one-year timeframe). The Top-rated analyst boasts an average return of 10.29% per rating and an 82% success rate. Click on the image below to learn more.
