Chevron Corp. (CVX) Downgraded to “Hold” at Zacks Investment Research
According to Zacks, “Chevron is one of the largest integrated energy firms in the world with an impressive business model. Being one of the most oil-weighted majors, Chevron is poised to benefit from the recent OPEC deal and the subsequent advancement of crude oil. As it is, the company has been able to boost returns and remain competitive by embarking on aggressive cost reduction initiatives, exiting unprofitable markets and streamlining the organization. However, Chevron is still losing money from producing oil and gas, while the downstream segment is seeing its income erode on fuel oversupply and weak demand. Worse, Chevron is expected to be free-cash-flow negative this year too with profitability set to fall well short of spending. Considering these factors, we think that the current valuation is fair and adequately reflect the company's future growth prospects.”
Several other equities research analysts have also commented on CVX. Morgan Stanley restated a hold rating and set a $85.00 target price on shares of Chevron Corp. in a research report on Wednesday, June 8th. Vetr lowered shares of Chevron Corp. from a buy rating to a hold rating and set a $106.39 target price on the stock. in a research report on Monday, June 20th. Jefferies Group restated a buy rating and set a $116.00 target price (up from $114.00) on shares of Chevron Corp. in a research report on Wednesday, July 6th. Barclays PLC reiterated an equal weight rating and issued a $125.00 price objective on shares of Chevron Corp. in a research report on Thursday, July 28th. Finally, Piper Jaffray Cos. upgraded shares of Chevron Corp. from a neutral rating to an overweight rating and boosted their price objective for the stock from $110.00 to $117.00 in a research report on Tuesday, August 9th. Twelve research analysts have rated the stock with a hold rating, nineteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. The company presently has a consensus rating of Buy and an average price target of $105.53.
Chevron Corp. (NYSE:CVX) opened at 102.23 on Wednesday. Chevron Corp. has a 52 week low of $75.33 and a 52 week high of $107.58. The firm’s 50-day moving average is $101.01 and its 200 day moving average is $101.00. The stock’s market cap is $192.86 billion.
Chevron Corp. (NYSE:CVX) last issued its earnings results on Friday, July 29th. The company reported ($0.78) EPS for the quarter, missing the consensus estimate of $0.32 by $1.10. The company had revenue of $29.28 billion for the quarter, compared to analysts’ expectations of $25.78 billion. Chevron Corp. had a positive return on equity of 1.07% and a negative net margin of 0.64%. Chevron Corp.’s revenue for the quarter was down 27.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.30 earnings per share. On average, equities research analysts expect that Chevron Corp. will post $1.29 EPS for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Monday, September 12th. Investors of record on Friday, August 19th were paid a $1.07 dividend. This represents a $4.28 dividend on an annualized basis and a dividend yield of 4.19%. The ex-dividend date was Wednesday, August 17th. Chevron Corp.’s payout ratio is -1,097.44%.
In related news, Director Inge G. Thulin acquired 487 shares of the business’s stock in a transaction that occurred on Monday, August 15th. The shares were acquired at an average cost of $102.87 per share, with a total value of $50,097.69. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Michael K. Wirth sold 125,000 shares of the firm’s stock in a transaction that occurred on Monday, August 1st. The shares were sold at an average price of $100.47, for a total value of $12,558,750.00. Following the completion of the transaction, the insider now directly owns 4,222 shares in the company, valued at $424,184.34. The disclosure for this sale can be found here. 0.40% of the stock is owned by corporate insiders.
Several hedge funds and other institutional investors have recently modified their holdings of the stock. CHURCHILL MANAGEMENT Corp acquired a new stake in Chevron Corp. during the second quarter worth about $2,118,000. Chevy Chase Trust Holdings Inc. raised its stake in Chevron Corp. by 0.7% in the second quarter. Chevy Chase Trust Holdings Inc. now owns 1,644,631 shares of the company’s stock worth $172,407,000 after buying an additional 11,249 shares during the period. Arizona State Retirement System raised its stake in Chevron Corp. by 1.8% in the first quarter. Arizona State Retirement System now owns 730,403 shares of the company’s stock worth $69,680,000 after buying an additional 13,100 shares during the period. Societe Generale acquired a new stake in Chevron Corp. during the second quarter worth about $66,963,000. Finally, NN Investment Partners Holdings N.V. acquired a new stake in Chevron Corp. during the first quarter worth about $55,733,000. 62.24% of the stock is currently owned by institutional investors and hedge funds.
Chevron Corp. Company Profile
Chevron Corporation (Chevron) manages its investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to the United States and international subsidiaries that engage in integrated energy and chemicals operations. The Company operates through two business segments: Upstream and Downstream.
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