Chevron (NYSE:CVX) Sets New 12-Month High – Here’s What Happened

Chevron Corporation (NYSE:CVX) hit a new 52-week high on Wednesday . The company traded as high as $169.37 and last traded at $167.0720, with a volume of 12100785 shares changing hands. The stock had previously closed at $163.87.

Chevron News Summary

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron took a Final Investment Decision (FID) to expand the Leviathan offshore gas platform, adding wells and capacity to send more gas to Israel, Egypt and Jordan — a concrete growth project that should strengthen Chevron’s Eastern Mediterranean gas production and near?term cash flow. Reuters: Chevron takes final investment decision on Leviathan gas expansion
• Positive Sentiment: Multiple outlets report Chevron is likely to receive an expanded U.S. license to operate in Venezuela, which — if finalized and implemented — would enable higher production and exports from a large resource basin and materially improve future production upside. Reuters: Chevron expected to receive expanded Venezuela license
• Neutral Sentiment: Republican bill H.R.7084 (Defending American Property Abroad Act) would give the U.S. government additional tools related to ports and assets seized by foreign states — could be helpful for U.S. companies with expropriation risk, but timing and use of the law are uncertain. QuiverQuant: H.R.7084 summary
• Neutral Sentiment: Investor commentary and screening pieces are flagging Chevron as a dividend and income name worth buying on weakness — supportive to longer?term demand for the stock but less relevant to near?term price moves. Seeking Alpha: Buy the dip — dividend growth stocks
• Negative Sentiment: New legislation proposed (H.R.7094, No Aid for Russian Energy Act) would restrict U.S. persons and parent companies from supplying equipment/services to Russia’s energy sector — a potential regulatory headwind for U.S. majors with any exposure or plans tied to Russia. QuiverQuant: H.R.7094 summary
• Negative Sentiment: Insider selling: an executive sold 3,200 shares at roughly $168 — common but can be interpreted as a modest near?term negative signal to sentiment. SEC Form 4: insider sale
• Negative Sentiment: Oil prices slipped after an easing of Iran?related geopolitical risk, which pressures upstream margins and can temper short?term earnings for integrated majors including Chevron. Barron’s: Oil prices fall as Iran tensions ease

Analysts Set New Price Targets

A number of research analysts have commented on the stock. Piper Sandler reduced their price target on shares of Chevron from $178.00 to $174.00 and set an “overweight” rating on the stock in a research report on Thursday, January 8th. Scotiabank reaffirmed a “sector perform” rating and set a $168.00 target price on shares of Chevron in a report on Friday. Citigroup decreased their target price on shares of Chevron from $185.00 to $179.00 and set a “buy” rating on the stock in a research report on Monday, January 5th. Wells Fargo & Company upped their price target on shares of Chevron from $190.00 to $196.00 and gave the company an “overweight” rating in a research report on Friday, November 14th. Finally, Bank of America reduced their price objective on Chevron from $183.00 to $180.00 and set a “buy” rating on the stock in a research note on Thursday, December 11th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, nine have given a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $168.27.

Chevron Price Performance

The stock has a market cap of $334.79 billion, a PE ratio of 23.39, a PEG ratio of 10.29 and a beta of 0.70. The business’s 50-day simple moving average is $153.46 and its 200-day simple moving average is $154.16. The company has a quick ratio of 0.86, a current ratio of 1.15 and a debt-to-equity ratio of 0.19.

Chevron (NYSE:CVX) last posted its earnings results on Friday, October 31st. The oil and gas company reported $1.85 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.71 by $0.14. Chevron had a return on equity of 8.74% and a net margin of 6.57%.The company had revenue of $48.17 billion for the quarter, compared to analysts’ expectations of $46.99 billion. During the same period last year, the firm earned $2.48 earnings per share. Chevron’s quarterly revenue was down 1.9% on a year-over-year basis. On average, research analysts expect that Chevron Corporation will post 10.79 EPS for the current fiscal year.

Chevron Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, December 10th. Stockholders of record on Tuesday, November 18th were paid a dividend of $1.71 per share. The ex-dividend date of this dividend was Tuesday, November 18th. This represents a $6.84 annualized dividend and a dividend yield of 4.1%. Chevron’s payout ratio is 96.20%.

Insiders Place Their Bets

In related news, insider Alana K. Knowles sold 7,956 shares of the firm’s stock in a transaction on Monday, January 5th. The stock was sold at an average price of $165.05, for a total value of $1,313,137.80. Following the completion of the sale, the insider owned 1,207 shares of the company’s stock, valued at $199,215.35. This trade represents a 86.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director John B. Hess sold 275,000 shares of the business’s stock in a transaction on Thursday, November 20th. The shares were sold at an average price of $150.75, for a total transaction of $41,456,250.00. Following the transaction, the director directly owned 1,128,045 shares in the company, valued at approximately $170,052,783.75. The trade was a 19.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 635,190 shares of company stock worth $100,254,408 in the last ninety days. Insiders own 0.21% of the company’s stock.

Institutional Trading of Chevron

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its position in shares of Chevron by 17.9% during the third quarter. Vanguard Group Inc. now owns 183,790,028 shares of the oil and gas company’s stock worth $28,540,753,000 after acquiring an additional 27,961,463 shares during the last quarter. State Street Corp lifted its stake in Chevron by 9.1% in the 3rd quarter. State Street Corp now owns 152,605,988 shares of the oil and gas company’s stock worth $23,698,184,000 after purchasing an additional 12,789,399 shares in the last quarter. Berkshire Hathaway Inc boosted its holdings in shares of Chevron by 2.9% during the 2nd quarter. Berkshire Hathaway Inc now owns 122,064,792 shares of the oil and gas company’s stock valued at $17,478,458,000 after purchasing an additional 3,454,258 shares during the last quarter. Kingstone Capital Partners Texas LLC grew its position in shares of Chevron by 652,139.5% during the second quarter. Kingstone Capital Partners Texas LLC now owns 83,714,936 shares of the oil and gas company’s stock valued at $13,214,757,000 after purchasing an additional 83,702,101 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. increased its holdings in shares of Chevron by 4.0% in the second quarter. Charles Schwab Investment Management Inc. now owns 34,772,753 shares of the oil and gas company’s stock worth $4,979,255,000 after purchasing an additional 1,342,723 shares during the last quarter. 72.42% of the stock is currently owned by hedge funds and other institutional investors.

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.