Chevron (NYSE:CVX) Trading Down 1.5% on Insider Selling

Chevron Corporation (NYSE:CVX)’s stock price fell 1.5% on Friday after an insider sold shares in the company. The company traded as low as $185.87 and last traded at $186.4220. Approximately 6,563,533 shares traded hands during mid-day trading, a decline of 40% from the average daily volume of 11,013,506 shares. The stock had previously closed at $189.23.

Specifically, CEO Michael K. Wirth sold 5,547 shares of Chevron stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $187.00, for a total transaction of $1,037,289.00. Following the completion of the transaction, the chief executive officer owned 26,308 shares of the company’s stock, valued at $4,919,596. This trade represents a 17.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director John B. Hess sold 100,000 shares of the business’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $194.26, for a total transaction of $19,426,000.00. Following the completion of the transaction, the director owned 178,045 shares in the company, valued at approximately $34,587,021.70. The trade was a 35.97% decrease in their position. The disclosure for this sale is available in the SEC filing. In other Chevron news, Director John B. Hess sold 710,665 shares of the company’s stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $194.10, for a total transaction of $137,940,076.50. Following the sale, the director owned 363,711 shares of the company’s stock, valued at approximately $70,596,305.10. This represents a 66.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the company. Weiss Ratings lowered Chevron from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, June 2nd. Barclays upped their target price on Chevron from $213.00 to $216.00 and gave the company an “equal weight” rating in a research report on Monday. The Goldman Sachs Group reiterated a “buy” rating and issued a $216.00 target price on shares of Chevron in a report on Wednesday, May 6th. Wolfe Research raised Chevron from a “peer perform” rating to an “outperform” rating and set a $210.00 price target on the stock in a research note on Thursday, July 2nd. Finally, Scotiabank boosted their price target on Chevron from $168.00 to $187.00 and gave the company a “sector perform” rating in a research note on Wednesday, April 22nd. Eighteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $207.48.

Key Chevron News

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron’s latest quarter remains the key bullish catalyst: net income reached $12.1 billion, compared with $2.5 billion a year earlier, while reported EPS of $6.06 exceeded the $5.55 consensus estimate. Elevated energy prices tied to Middle East disruptions significantly boosted results. Chevron earnings article
• Positive Sentiment: Analysts remain constructive, citing record production, multibillion-dollar debt reduction, strong free cash flow and a 20-year power agreement with Microsoft that could support Chevron’s long-term growth and financial flexibility. TD Cowen also forecasts meaningful share-price appreciation. Wall Street bullish on Chevron article
• Positive Sentiment: Chevron continues to attract income-focused investors because of its dividend, scale and balance-sheet strength. Its expansion of the North American base-oils distribution network provides an additional downstream growth initiative. Dividend-paying energy giants article
• Neutral Sentiment: Options premiums remain elevated because of the Gulf conflict. That volatility may benefit sophisticated investors selling puts, but it also signals that the market expects unusually large swings in energy stocks. Gulf uncertainty and oil majors article
• Negative Sentiment: A director sold more than 810,000 CVX shares for approximately $157 million, substantially reducing his holdings. Although the sales may be personal or transaction-related, their timing can add to investor caution after the recent rally. Chevron insider trading report
• Negative Sentiment: The earnings surge is heavily linked to Middle Eastern supply disruptions and could prove difficult to sustain if geopolitical tensions ease. Chevron and other majors are also facing criticism that windfall gains and elevated fuel prices could invite political or regulatory pressure. Chevron valuation analysis article

Chevron Stock Down 1.5%

The stock has a market cap of $371.28 billion, a price-to-earnings ratio of 17.87, a price-to-earnings-growth ratio of 0.57 and a beta of 0.49. The firm’s fifty day moving average price is $182.29 and its two-hundred day moving average price is $185.80. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.09 and a quick ratio of 0.84.

Chevron (NYSE:CVX) last issued its earnings results on Friday, July 31st. The oil and gas company reported $6.06 EPS for the quarter, beating analysts’ consensus estimates of $5.55 by $0.51. Chevron had a return on equity of 11.14% and a net margin of 9.57%.The business had revenue of $67.20 billion during the quarter, compared to analyst estimates of $62.72 billion. During the same period in the previous year, the company posted $1.77 EPS. The firm’s revenue was up 57.4% compared to the same quarter last year. Sell-side analysts forecast that Chevron Corporation will post 15.88 earnings per share for the current fiscal year.

Chevron Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Wednesday, August 19th will be paid a $1.78 dividend. This represents a $7.12 dividend on an annualized basis and a yield of 3.8%. The ex-dividend date of this dividend is Wednesday, August 19th. Chevron’s dividend payout ratio (DPR) is 68.26%.

Institutional Investors Weigh In On Chevron

Several hedge funds and other institutional investors have recently modified their holdings of CVX. Midwest Capital Advisors LLC bought a new position in shares of Chevron in the 1st quarter worth $25,000. Main Street Group LTD bought a new stake in Chevron during the 1st quarter valued at $28,000. Phillip James Consulting Co. acquired a new position in Chevron during the fourth quarter worth $26,000. Core Wealth Advisors LLC acquired a new position in Chevron during the fourth quarter worth $26,000. Finally, Karpus Management Inc. bought a new position in shares of Chevron in the fourth quarter valued at $27,000. Institutional investors own 72.42% of the company’s stock.

About Chevron

Chevron Corporation (NYSE: CVX) is an American multinational energy company engaged in virtually all aspects of the oil and gas industry. As an integrated energy firm, Chevron’s core activities include upstream oil and natural gas exploration and production, midstream transportation and storage, downstream refining and marketing of fuels and lubricants, and petrochemical manufacturing through joint ventures and subsidiaries. The company markets fuels under brands such as Chevron, Texaco and Caltex and supplies a range of products and services to retail customers, industrial users and commercial fleets worldwide.

Chevron traces its corporate lineage to the early petroleum companies that eventually became Standard Oil of California and has evolved through significant mergers and restructurings, including the acquisitions of Gulf Oil and Texaco.