Chevron (NYSE:CVX) Stock Falls 1.1% – Here’s Why

Chevron Corporation (NYSE:CVX)’s share price dropped 1.1% during mid-day trading on Thursday. The stock traded as low as $218.05 and last traded at $219.5140. 6,948,770 shares changed hands during trading, a decline of 33% from the average daily volume of 10,431,642 shares. The stock had previously closed at $222.04.

More Chevron News

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Morgan Stanley raised its price target on Chevron from $218 to $226 and assigned an “overweight” rating, suggesting continued confidence in the company’s valuation and outlook. Morgan Stanley analyst upgrade
• Positive Sentiment: Third-quarter earnings expectations are strong. Wall Street anticipates a triple-digit increase in Chevron’s bottom line compared with the prior-year period, creating a potential near-term catalyst when results are released later this month. Chevron earnings expectations
• Positive Sentiment: Chevron continues to attract income-focused investors. The company is among the major holdings of the Schwab U.S. Dividend Equity ETF, while its integrated business model and diversified operations support its reputation as a dividend stock. Dividend ETF holdings
• Neutral Sentiment: Chevron’s valuation is drawing mixed reviews. Some analysis finds the stock reasonably supported by cash-flow value and long-term fundamentals, while other commentary says its recent rally may have pushed shares ahead of their underlying value. Chevron cash flow valuation
• Negative Sentiment: CEO Mike Wirth warned that oil-market safety buffers have been depleted. Commercial inventories, emergency reserves and previously sanctioned supply have reportedly been tapped following geopolitical disruptions. That raises the risk of additional volatility and prolonged diesel-price pressure, potentially weighing on economic activity and energy demand. Chevron CEO oil market warning

Analyst Ratings Changes

Several research firms have weighed in on CVX. Wells Fargo & Company raised their price target on Chevron from $226.00 to $230.00 and gave the stock an “overweight” rating in a research report on Thursday, September 3rd. HSBC set a $90.00 target price on shares of Chevron in a report on Friday, September 25th. Wall Street Zen raised shares of Chevron from a “hold” rating to a “buy” rating in a research note on Saturday, August 8th. Mizuho set a $234.00 price target on shares of Chevron in a report on Monday. Finally, Raymond James Financial reduced their price objective on shares of Chevron from $230.00 to $225.00 and set an “outperform” rating on the stock in a research note on Tuesday, July 21st. One analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Chevron currently has an average rating of “Moderate Buy” and an average price target of $213.42.

Chevron Trading Down 1.1%

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 business’s fifty day moving average is $206.20 and its 200-day moving average is $193.23. The stock has a market capitalization of $433.71 billion, a PE ratio of 21.05, a P/E/G ratio of 0.60 and a beta of 0.53.

Chevron (NYSE:CVX) last posted its quarterly earnings results on Friday, July 31st. The oil and gas company reported $6.06 earnings per share for the quarter, topping analysts’ consensus estimates of $5.55 by $0.51. Chevron had a net margin of 9.57% and a return on equity of 11.09%. The company had revenue of $67.20 billion for the quarter, compared to the consensus estimate of $62.72 billion. During the same quarter last year, the firm posted $1.77 earnings per share. Chevron’s revenue was up 57.4% on a year-over-year basis. As a group, analysts anticipate that Chevron Corporation will post 17.59 EPS for the current fiscal year.

Chevron Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Wednesday, August 19th were issued a $1.78 dividend. The ex-dividend date was Wednesday, August 19th. This represents a $7.12 dividend on an annualized basis and a yield of 3.2%. Chevron’s dividend payout ratio (DPR) is presently 68.26%.

Insider Transactions at Chevron

In other news, Director John B. Hess sold 100,000 shares of the business’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 sale, the director owned 178,045 shares in the company, valued at approximately $34,587,021.70. The trade was a 35.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Michael K. Wirth sold 317,100 shares of the business’s stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $200.46, for a total transaction of $63,565,866.00. Following the sale, the chief executive officer owned 26,308 shares of the company’s stock, valued at approximately $5,273,701.68. This represents a 92.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,152,582 shares of company stock worth $225,853,661 in the last three months. 0.56% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new position in shares of Chevron during the 2nd quarter worth $25,663,729,000. Bank of New York Mellon Corp bought a new stake in Chevron in the second quarter worth $2,378,114,000. Legal & General Group Plc acquired a new position in Chevron during the second quarter worth $1,462,412,000. Berkshire Hathaway Inc lifted its position in shares of Chevron by 6.6% in the fourth 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. Finally, Deutsche Bank AG acquired a new stake in shares of Chevron in the second quarter worth about $1,189,577,000. 72.42% of the stock is 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.