Chevron (NYSE:CVX) Stock Price Down 1.5% – Should You Sell?

Chevron Corporation (NYSE:CVX) shares dropped 1.5% during mid-day trading on Tuesday . The stock traded as low as $186.34 and last traded at $190.31. 9,444,693 shares were traded during trading, a decline of 15% from the average session volume of 11,103,001 shares. The stock had previously closed at $193.18.

Key Chevron News

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Quarterly earnings surged: Chevron reported approximately $12.1 billion in net income, up substantially from $2.5 billion in the year-earlier period. Results benefited from higher oil prices, Middle East-related supply disruptions, stronger refining margins and increased production. Chevron Turned $3.1 Billion Loss Into A Gain In One Quarter Amid Heightened Volatility During Iran War
• Positive Sentiment: Operations and balance sheet are improving: Reports highlight record production, billions of dollars in debt reduction, early cost-cutting progress and a 20-year agreement to supply power to Microsoft for artificial-intelligence operations. These developments support Chevron’s cash-flow and long-term growth narrative. Wall Street Is Bullish on Chevron Stock
• Positive Sentiment: Analyst and income support: TD Cowen raised its Chevron price target from $200 to $205 while maintaining a Hold rating. Other coverage describes CVX as a financially strong dividend payer, and Chevron maintained its quarterly dividend at $1.78 per share. TD Cowen Raises Chevron Price Target
• Neutral Sentiment: New downstream initiative: Chevron is expanding its North American base-oils distribution network through partnerships. The move could improve product mix and logistics over time, but its near-term earnings impact is unclear. Chevron Broadens North American Base Oils Distribution Network
• Neutral Sentiment: Market backdrop: Energy-sector peers are also benefiting from elevated oil prices and geopolitical tensions, while a broader market pullback could limit short-term upside for CVX.
• Negative Sentiment: Political and regulatory risk is rising: Former President Donald Trump criticized Chevron and other oil companies for earning unusually large profits while U.S. gasoline prices remained elevated. The criticism could increase pressure for windfall-profit measures or other policy responses. Trump Criticizes Exxon and Chevron
• Negative Sentiment: Insider selling and valuation concerns: Director John B. Hess sold 810,665 shares worth roughly $157 million, substantially reducing his holdings. Analysts also see a relatively narrow path for further gains, while current profits may be unusually dependent on war-driven oil and refining conditions.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on CVX. UBS Group reaffirmed a “buy” rating on shares of Chevron in a research report on Tuesday, June 23rd. Wolfe Research upgraded Chevron from a “peer perform” rating to an “outperform” rating and set a $210.00 price target for the company in a report on Thursday, July 2nd. Mizuho set a $224.00 target price on shares of Chevron in a research note on Monday. Scotiabank lifted their price objective on Chevron from $168.00 to $187.00 and gave the stock a “sector perform” rating in a report on Wednesday, April 22nd. Finally, Piper Sandler initiated coverage on shares of Chevron in a research report on Thursday, July 23rd. They set an “overweight” rating and a $207.00 price target on the stock. Eighteen investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $207.48.

Chevron Stock Performance

The firm has a market capitalization of $376.40 billion, a price-to-earnings ratio of 18.12, a P/E/G ratio of 0.59 and a beta of 0.49. The company has a 50-day moving average price of $182.18 and a 200-day moving average price of $185.64. The company has a quick ratio of 0.84, a current ratio of 1.09 and a debt-to-equity ratio of 0.21.

Chevron (NYSE:CVX) last issued its quarterly earnings data on Friday, July 31st. The oil and gas company reported $6.06 earnings per share for the quarter, beating analysts’ consensus estimates of $5.55 by $0.51. The business had revenue of $67.20 billion for the quarter, compared to analysts’ expectations of $62.72 billion. Chevron had a net margin of 9.57% and a return on equity of 11.14%. The company’s revenue was up 57.4% on a year-over-year basis. During the same period in the previous year, the business earned $1.77 earnings per share. As a group, equities research analysts forecast that Chevron Corporation will post 15.72 earnings per share for the current year.

Chevron Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders 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 dividend yield of 3.8%. The ex-dividend date of this dividend is Wednesday, August 19th. Chevron’s payout ratio is currently 68.26%.

Insiders Place Their Bets

In other news, Director John B. Hess sold 100,000 shares of the firm’s stock in a transaction dated 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. This trade represents a 35.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Over the last three months, insiders have sold 1,190,665 shares of company stock valued at $230,782,076. 0.56% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Chevron

A number of hedge funds have recently modified their holdings of CVX. Midwest Capital Advisors LLC purchased a new stake in shares of Chevron in the 1st quarter valued at approximately $25,000. Core Wealth Advisors LLC acquired a new position in Chevron during the fourth quarter worth $26,000. Phillip James Consulting Co. bought a new position in shares of Chevron in the 4th quarter valued at approximately $26,000. Basso Capital Management L.P. bought a new stake in shares of Chevron during the 4th quarter worth $27,000. Finally, Karpus Management Inc. bought a new stake in Chevron during the fourth quarter valued at about $27,000. 72.42% of the stock is currently owned by institutional investors and hedge funds.

Chevron Company Profile

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.