Chevron (NYSE:CVX) Shares Down 1% – Here’s Why

Chevron Corporation (NYSE:CVX) shares traded down 1% on Tuesday. The stock traded as low as $202.70 and last traded at $204.2880. Approximately 5,874,077 shares traded hands during trading, a decline of 45% from the average session volume of 10,658,993 shares. The stock had previously closed at $206.37.

Key Chevron News

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron’s global scale, relatively low leverage, dividend profile, and durable profitability make it a preferred energy investment compared with Occidental Petroleum. Analysts and financial commentators also point to its earnings growth and valuation as supportive of the stock. Chevron vs. Occidental Petroleum comparison
• Positive Sentiment: TD Cowen raised its Chevron price target to $215 and expects strong refining performance to help Chevron exceed third-quarter earnings estimates, providing a potential near-term earnings catalyst. TD Cowen Chevron price target
• Positive Sentiment: Chevron signed a preliminary agreement with Vietnam’s PVN covering possible crude oil, LNG, and LPG supplies, along with refining, storage, import infrastructure, and emissions-reduction cooperation. The agreement could expand Chevron’s long-term commercial opportunities in Southeast Asia. Chevron Vietnam energy supply agreement
• Positive Sentiment: Chevron and Egypt are accelerating plans to connect Cyprus’s Aphrodite gas field to Egyptian infrastructure, while Chevron is preparing to explore in Greek waters, expanding its Mediterranean growth platform. Chevron Aphrodite gas project
• Neutral Sentiment: Higher crude prices tied to renewed Iran and Strait of Hormuz tensions may support Chevron’s upstream revenue, but the same tensions are also prompting investors to reduce exposure to risk assets and increasing market volatility. Stocks affected by oil-price volatility
• Negative Sentiment: The Vietnam agreement has no fixed supply volume or start date, while the Mediterranean projects remain longer-term opportunities. As a result, investors may see limited immediate earnings impact despite the favorable strategic headlines.

Wall Street Analyst Weigh In

Several research analysts recently commented on CVX shares. Weiss Ratings raised Chevron from a “hold (c)” rating to a “buy (b)” rating in a research note on Tuesday, August 11th. Barclays reduced their target price on shares of Chevron from $216.00 to $208.00 and set an “equal weight” rating for the company in a research report on Monday, August 17th. Mizuho set a $224.00 price target on shares of Chevron in a research note on Monday, August 3rd. Bank of America upped their price objective on shares of Chevron from $210.00 to $227.00 and gave the company a “buy” rating in a research note on Tuesday, July 28th. Finally, Argus raised their target price on shares of Chevron from $206.00 to $211.00 and gave the stock a “buy” rating in a research note on Tuesday, August 11th. Twenty-one research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $210.87.

Chevron Stock Down 1.0%

The stock has a market capitalization of $403.63 billion, a price-to-earnings ratio of 19.59, a PEG ratio of 0.59 and a beta of 0.50. The business has a fifty day moving average of $201.83 and a 200 day moving average of $192.43. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.25 and a quick ratio of 0.98.

Chevron (NYSE:CVX) last posted its earnings results on Friday, July 31st. The oil and gas company reported $6.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.55 by $0.51. Chevron had a return on equity of 11.09% and a net margin of 9.57%.The company had revenue of $67.20 billion during the quarter, compared to analysts’ expectations of $62.72 billion. During the same quarter last year, the firm earned $1.77 earnings per share. The firm’s quarterly revenue was up 57.4% compared to the same quarter last year. As a group, equities analysts predict that Chevron Corporation will post 16.66 earnings per share for the current year.

Chevron Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Wednesday, August 19th were given a dividend of $1.78 per share. The ex-dividend date was Wednesday, August 19th. This represents a $7.12 dividend on an annualized basis and a dividend yield of 3.5%. Chevron’s dividend payout ratio (DPR) is currently 68.26%.

Insider Transactions at Chevron

In related news, Director John Hess sold 100,000 shares of the firm’s stock in a transaction dated Monday, August 3rd. The stock was 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 directly owned 178,045 shares in the company, valued at $34,587,021.70. This trade represents a 35.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Andrew Walz sold 16,800 shares of the stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $201.06, for a total transaction of $3,377,808.00. Following the sale, the insider directly owned 14 shares in the company, valued at $2,814.84. This represents a 99.92% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 1,152,582 shares of company stock worth $225,853,661 in the last ninety days. 0.56% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of CVX. QRG Capital Management Inc. boosted its stake in shares of Chevron by 11.6% in the 2nd quarter. QRG Capital Management Inc. now owns 345,288 shares of the oil and gas company’s stock valued at $57,235,000 after buying an additional 35,889 shares during the period. Envestnet Portfolio Solutions Inc. increased its stake in shares of Chevron by 9.5% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 146,083 shares of the oil and gas company’s stock worth $24,930,000 after buying an additional 12,673 shares during the period. Envestnet Asset Management Inc. raised its holdings in Chevron by 2.9% in the second quarter. Envestnet Asset Management Inc. now owns 5,359,482 shares of the oil and gas company’s stock valued at $932,962,000 after acquiring an additional 148,674 shares in the last quarter. State Street Corp raised its holdings in Chevron by 3.9% in the second quarter. State Street Corp now owns 159,136,768 shares of the oil and gas company’s stock valued at $28,016,651,000 after acquiring an additional 5,998,852 shares in the last quarter. Finally, Security National Bank of Sioux City Iowa IA purchased a new position in Chevron in the second quarter worth approximately $130,000. 72.42% of the stock is owned by institutional investors and hedge funds.

Chevron Company Profile

Chevron Corporation (NYSE:CVX) is an integrated energy company engaged in the exploration, development, production, transportation and sale of crude oil and natural gas. Its upstream operations include oil and gas exploration and production, while its downstream business includes refining crude oil, marketing fuels and manufacturing and distributing lubricants, petrochemicals and fuel additives.

The company also invests in lower-carbon businesses and technologies, including renewable fuels, carbon capture and storage, hydrogen and other opportunities intended to reduce emissions from its operations and energy products.