Chevron (NYSE:CVX) Trading Up 2.3% – Should You Buy?

Chevron Corporation (NYSE:CVX)’s share price was up 2.3% during mid-day trading on Tuesday . The company traded as high as $211.08 and last traded at $210.88. Approximately 8,530,580 shares changed hands during mid-day trading, a decline of 20% from the average session volume of 10,723,500 shares. The stock had previously closed at $206.14.

Key Headlines Impacting Chevron

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Potential Venezuela expansion: Chevron is reportedly nearing agreements to add two heavy-oil fields in Venezuela’s Orinoco Belt. A U.S. official said the company is expected to formally announce expanded operations during a visit to Venezuela, potentially giving Chevron access to the country’s vast reserves and increasing its production opportunities. Chevron Stock Rises on Plan to Expand Operations in Venezuela
• Positive Sentiment: Oil-price support: Renewed military conflict involving the United States and Iran, along with constraints around the Strait of Hormuz, pushed crude prices higher. The resulting increase in the energy-sector risk premium benefited Chevron and other oil producers by improving the outlook for upstream cash flow. Chevron and Exxon Mobil Rise as Oil Prices Increase
• Positive Sentiment: Strategic positioning: Chevron is viewed as particularly well positioned because it already has significant Venezuelan operations and refining capabilities for the country’s heavy crude. Expanded contracts could create a multiyear growth opportunity if Venezuela’s amended hydrocarbons framework enables greater foreign-company control and investment. Chevron Positioned to Benefit From Venezuela Oil Deal
• Neutral Sentiment: Deal remains unfinalized: Reports describe negotiations and expected announcements rather than completed transactions. Investors still need clarity on contract terms, capital requirements, production timelines, sanctions, political stability and the role of Venezuelan counterparties before valuing the opportunity.
• Negative Sentiment: Execution and political risks: Reuters reported that some producers have hesitated over the proposed Venezuela arrangement, citing concerns about its structure and the prominent role of a Venezuelan businessman. Chevron could also face pressure to lower fuel prices after President Trump’s meeting with refiners, potentially limiting downstream margins. Trump’s Venezuela Oil Deal Raises Concerns

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. TD Cowen upped their price objective on shares of Chevron from $200.00 to $205.00 and gave the stock a “hold” rating in a research report on Wednesday, August 5th. Dbs Bank raised Chevron to a “moderate buy” rating in a research note on Thursday, August 6th. Morgan Stanley lifted their price target on shares of Chevron from $210.00 to $218.00 and gave the stock an “overweight” rating in a research note on Wednesday, August 19th. The Goldman Sachs Group restated a “buy” rating and issued a $216.00 price objective on shares of Chevron in a report on Wednesday, May 6th. Finally, UBS Group reiterated a “buy” rating on shares of Chevron in a research report on Tuesday, June 23rd. Twenty equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $207.48.

Chevron Stock Up 2.3%

The firm has a market cap of $416.65 billion, a PE ratio of 20.22, a PEG ratio of 0.60 and a beta of 0.49. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.98 and a current ratio of 1.25. The company’s 50-day simple moving average is $188.07 and its two-hundred day simple moving average is $189.06.

Chevron (NYSE:CVX) last issued its quarterly earnings data on Friday, July 31st. The oil and gas company reported $6.06 EPS for the quarter, beating the consensus estimate of $5.55 by $0.51. The firm had revenue of $67.20 billion during the quarter, compared to the consensus estimate of $62.72 billion. Chevron had a net margin of 9.57% and a return on equity of 11.09%. The company’s quarterly revenue was up 57.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.77 earnings per share. On average, analysts predict that Chevron Corporation will post 16.24 earnings per share for the current fiscal year.

Chevron Announces Dividend

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

Insiders Place Their Bets

In other news, Director John B. Hess sold 100,000 shares of the business’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 transaction of $19,426,000.00. Following the transaction, the director directly owned 178,045 shares of the company’s stock, valued at approximately $34,587,021.70. The trade was a 35.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider R. Hewitt Pate sold 2,470 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $205.11, for a total value of $506,621.70. Following the transaction, the insider owned 10,794 shares of the company’s stock, valued at approximately $2,213,957.34. This represents a 18.62% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,152,582 shares of company stock valued at $225,853,661 in the last 90 days. 0.56% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Chevron

Several hedge funds and other institutional investors have recently modified their holdings of CVX. Blue Capital Inc. bought a new position in shares of Chevron during the second quarter valued at $786,000. OneAscent Wealth Management LLC purchased a new position in Chevron in the 2nd quarter worth about $973,000. Global Retirement Partners LLC purchased a new position in Chevron in the 2nd quarter worth about $14,276,000. Indivisible Partners bought a new position in Chevron during the 4th quarter valued at about $1,923,000. Finally, Janney Montgomery Scott LLC boosted its holdings in shares of Chevron by 6.8% during the 1st quarter. Janney Montgomery Scott LLC now owns 1,251,102 shares of the oil and gas company’s stock valued at $258,853,000 after acquiring an additional 79,439 shares during the last quarter. Hedge funds and other institutional investors own 72.42% of the company’s stock.

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.