Chevron (NYSE:CVX) Trading Up 2.5% – Here’s Why

Chevron Corporation (NYSE:CVX) shares were up 2.5% on Tuesday . The company traded as high as $217.78 and last traded at $217.5240. Approximately 9,537,538 shares changed hands during trading, a decline of 10% from the average daily volume of 10,578,358 shares. The stock had previously closed at $212.17.

Key Headlines Impacting Chevron

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron’s CEO warned that global fuel supplies are tightening and that a broader fuel crisis may already be developing. Persistent supply constraints could support crude, refined-product prices and Chevron’s upstream earnings. Chevron CEO sounds the alarm on global oil supplies
• Positive Sentiment: Chevron’s expanded Venezuelan ventures add Orinoco Basin acreage and include plans to invest more than $7 billion over five years, potentially increasing long-term production and cash flow. The opportunity remains subject to geopolitical, regulatory and execution risks. Will Chevron’s Expanded Venezuelan Oil Ventures Redefine Its Long-Term Cash Flow Narrative?
• Positive Sentiment: Strong recent downstream performance, a power agreement with Microsoft and planned LNG expansion across four continents support Chevron’s strategy to build earnings streams less dependent on crude prices. Chevron Doesn’t Need Oil to Hit New Highs Chevron Plans Global LNG Expansion Across Four Continents
• Positive Sentiment: Zacks continues to identify CVX as a strong momentum stock, reflecting its recent outperformance and favorable trading trend. Here’s Why Chevron Is a Strong Momentum Stock
• Neutral Sentiment: Oil prices recently surged on disruptions to Saudi infrastructure, which could benefit Chevron’s production revenue but also increase concerns about economic damage, shipping risks and market volatility. Oil Crisis Worsens, Diesel Hits Record High
• Negative Sentiment: Oil futures are in backwardation, signaling expectations for lower prices ahead as demand destruction and rising non-OPEC supply threaten the energy market. Lower crude prices would pressure Chevron’s upstream profits. The Fed’s Rate Hike Could Backfire If Oil Prices Collapse
• Negative Sentiment: Investors reacted negatively to reports that contracts account for roughly one-fifth of Chevron’s LNG portfolio, raising questions about portfolio exposure and contract economics. Chevron Falls as Contracts Supply One-Fifth of Its LNG Portfolio

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. Morgan Stanley raised their target price on shares of Chevron from $210.00 to $218.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 19th. Mizuho set a $224.00 price objective on Chevron in a report on Monday, August 3rd. Bank of America lifted their target price on Chevron from $210.00 to $227.00 and gave the company a “buy” rating in a research report on Tuesday, July 28th. 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 report on Thursday, July 2nd. Finally, TD Cowen raised their price target on Chevron from $200.00 to $205.00 and gave the company a “hold” rating in a research note on Wednesday, August 5th. Twenty equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Chevron has an average rating of “Moderate Buy” and an average target price of $211.35.

Chevron Trading Down 0.1%

The company has a current ratio of 1.25, a quick ratio of 0.98 and a debt-to-equity ratio of 0.19. The stock has a market capitalization of $417.46 billion, a P/E ratio of 20.27, a price-to-earnings-growth ratio of 0.64 and a beta of 0.50. The company has a 50-day moving average price of $197.98 and a 200 day moving average price of $191.43.

Chevron (NYSE:CVX) last posted its quarterly earnings data on Friday, July 31st. The oil and gas company reported $6.06 EPS for the quarter, topping the consensus estimate of $5.55 by $0.51. The firm had revenue of $67.20 billion during the quarter, compared to analyst estimates of $62.72 billion. Chevron had a net margin of 9.57% and a return on equity of 11.09%. Chevron’s revenue was up 57.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.77 EPS. On average, research analysts forecast that Chevron Corporation will post 16.51 earnings per share for the current fiscal year.

Chevron Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Wednesday, August 19th were issued a $1.78 dividend. This represents a $7.12 annualized dividend and a dividend yield of 3.4%. The ex-dividend date of this dividend was Wednesday, August 19th. Chevron’s dividend payout ratio is 68.26%.

Insider Buying and Selling at Chevron

In other news, insider R. Pate sold 2,470 shares of the company’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $205.11, for a total value of $506,621.70. Following the sale, the insider owned 10,794 shares in the company, valued at $2,213,957.34. This represents a 18.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director John Hess sold 100,000 shares of the company’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $194.26, for a total value of $19,426,000.00. Following the completion of the sale, the director owned 178,045 shares in the company, valued at approximately $34,587,021.70. This represents a 35.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,152,582 shares of company stock valued at $225,853,661 in the last three months. Company insiders own 0.56% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of CVX. Midwest Capital Advisors LLC purchased a new stake in shares of Chevron during the 1st quarter valued at approximately $25,000. Main Street Group LTD acquired a new stake in shares of Chevron during the first quarter valued at about $28,000. Phillip James Consulting Co. acquired a new stake in shares of Chevron during the fourth quarter valued at about $26,000. Kilter Group LLC purchased a new stake in shares of Chevron in the 2nd quarter valued at approximately $28,000. Finally, Core Wealth Advisors LLC acquired a new position in shares of Chevron in the 4th quarter worth approximately $26,000. 72.42% of the stock is owned by hedge funds and other institutional investors.

Chevron Company Profile

Chevron Corporation is an integrated energy company engaged in the exploration, production, transportation and sale of crude oil and natural gas. The company also manufactures and markets transportation fuels, lubricants, petrochemicals and additives through operations and brands that include Chevron, Texaco and Caltex.

Chevron’s upstream activities include oil and natural gas exploration and production, while its downstream business includes refining, fuel marketing, transportation and related energy services.