Chevron (NYSE:CVX) Shares Climb 3.1% – Here’s What Happened

Chevron Corporation (NYSE:CVX) shares shot up 3.1% during mid-day trading on Thursday. The company traded as high as $212.36 and last traded at $211.5630. 7,598,594 shares traded hands during mid-day trading, a decline of 28% from the average daily volume of 10,502,188 shares. The stock had previously closed at $205.15.

Key Headlines Impacting Chevron

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Crude oil moved above $92.60 amid concerns that Middle East tensions could disrupt supplies. Higher oil prices generally support Chevron’s upstream earnings and cash flow. Why Is Chevron Stock Surging on Thursday?
• Positive Sentiment: UBS raised its price target for Chevron to $235, adding to bullish sentiment. Zacks also upgraded the stock to “strong buy,” while other commentary highlighted Chevron’s cash generation, estimates and dividend appeal. Chevron highlighted as Zacks Bull
• Positive Sentiment: Chevron’s restructuring of its Hess Midstream relationship is expected to reduce Bakken midstream costs by about 50%, extend contracts through 2045 and improve return on capital. The company will also receive $200 million, while the transaction is expected to simplify its portfolio and address roughly $3.7 billion of related debt exposure. Chevron to Divest its Ownership Interests in Hess Midstream
• Neutral Sentiment: A tropical storm prompted Chevron to shut in four Gulf of Mexico facilities and evacuate some personnel. The temporary output reduction could tighten fuel markets and support prices, but it also creates near-term production and operational risk. Chevron Shuts In Four Gulf Facilities
• Negative Sentiment: The Hess Midstream transaction carries an estimated $3 billion to $4 billion closing loss, creating a substantial near-term earnings and valuation headwind despite the expected long-term cost savings. Chevron Is Offloading Hess Midstream
• Negative Sentiment: Chevron CEO Mike Wirth warned that a potential U.S. diesel-export ban could reduce global supply and worsen the energy crisis. Although the comments support Chevron’s policy position, an export restriction could pressure refining economics and disrupt markets. Chevron CEO warns against diesel export ban

Analyst Ratings Changes

A number of analysts recently commented on the stock. HSBC set a $90.00 price objective on shares of Chevron in a report on Friday, September 25th. UBS Group increased their target price on shares of Chevron from $220.00 to $235.00 and gave the company a “buy” rating in a report on Thursday. Zacks Research upgraded shares of Chevron from a “hold” rating to a “strong-buy” rating in a research report on Monday. The Goldman Sachs Group decreased their price target on Chevron from $240.00 to $228.00 and set a “buy” rating on the stock in a research note on Tuesday, September 22nd. Finally, Wall Street Zen upgraded Chevron from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $210.24.

Chevron Trading Up 3.1%

The business’s fifty day moving average price is $203.83 and its 200 day moving average price is $192.87. The company has a quick ratio of 0.98, a current ratio of 1.25 and a debt-to-equity ratio of 0.19. The firm has a market capitalization of $418.00 billion, a PE ratio of 20.28, a P/E/G ratio of 0.58 and a beta of 0.53.

Chevron (NYSE:CVX) last announced its earnings results on Friday, July 31st. The oil and gas company reported $6.06 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.55 by $0.51. The firm had revenue of $67.20 billion for 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% compared to the same quarter last year. During the same quarter last year, the business earned $1.77 earnings per share. As a group, analysts expect that Chevron Corporation will post 17.47 EPS for the current fiscal year.

Chevron Dividend Announcement

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

Insiders Place Their Bets

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

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. State Street Corp raised its stake in Chevron by 3.9% during the second quarter. State Street Corp now owns 159,136,768 shares of the oil and gas company’s stock worth $28,016,651,000 after purchasing an additional 5,998,852 shares during the period. BlackRock Inc. purchased a new stake in shares of Chevron during the 2nd quarter valued at $25,663,729,000. Berkshire Hathaway Inc increased its holdings in shares of Chevron by 6.6% during the 4th quarter. Berkshire Hathaway Inc now owns 130,156,362 shares of the oil and gas company’s stock worth $19,837,131,000 after buying an additional 8,091,570 shares during the last quarter. Bank of America Corp DE raised its position in shares of Chevron by 5.1% in the 1st quarter. Bank of America Corp DE now owns 27,630,227 shares of the oil and gas company’s stock worth $5,716,694,000 after buying an additional 1,334,976 shares during the period. Finally, Invesco Ltd. raised its position in shares of Chevron by 1.5% in the 4th quarter. Invesco Ltd. now owns 17,119,575 shares of the oil and gas company’s stock worth $2,609,194,000 after buying an additional 254,323 shares during the period. 72.42% of the stock is currently owned by hedge funds and other institutional investors.

About Chevron

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.