Chevron Corporation (NYSE:CVX) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a favorable view of Chevron: Twenty of 26 analysts rate the stock a buy, five recommend holding and one rates it a sell, producing an average “Moderate Buy” rating and a $207.48 12-month price target.
• Chevron exceeded quarterly expectations, reporting $6.06 in EPS and $67.20 billion in revenue, while revenue rose 57.4% year over year. The company also maintains a $1.78 quarterly dividend, equivalent to a 3.5% annual yield.
• Higher crude prices and a new offshore Angola discovery provide potential support, but risks include possible future oil-supply growth from Iraq, ongoing execution concerns and substantial recent insider selling.

Chevron Corporation (NYSE:CVX - Get Free Report) has earned an average recommendation of "Moderate Buy" from the twenty-six analysts that are currently covering the stock, MarketBeat.com reports. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and twenty have issued a buy rating on the company. The average 12-month price target among brokers that have issued a report on the stock in the last year is $207.4783.

CVX has been the subject of several analyst reports. Mizuho set a $224.00 target price on Chevron in a report on Monday, August 3rd. Sanford C. Bernstein lifted their price target on Chevron from $204.00 to $209.00 and gave the stock a "market perform" rating in a report on Monday, August 3rd. UBS Group reissued a "buy" rating on shares of Chevron in a research report on Tuesday, June 23rd. Bank of America upped their price objective on shares of Chevron from $210.00 to $227.00 and gave the company a "buy" rating in a report on Tuesday, July 28th. Finally, The Goldman Sachs Group restated a "buy" rating and set a $216.00 price objective on shares of Chevron in a research report on Wednesday, May 6th.

Chevron News Roundup

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Brent crude recently approached $94–$95 per barrel amid renewed Middle East tensions and concerns about Strait of Hormuz disruptions. Sustained higher oil prices typically benefit Chevron’s upstream revenue, margins and cash flow. Chevron jumps as Brent crude approaches $94
• Positive Sentiment: Chevron confirmed an oil and gas condensate discovery at the 105-4X well in offshore Angola. Its proximity to existing facilities could allow a lower-cost tie-back, creating a potential source of future production. Chevron Angola discovery analysis
• Positive Sentiment: Chevron’s $1.78 quarterly dividend, equal to $7.12 annually and an approximately 3.5% yield, reinforces its appeal to income investors. The company also recently exceeded quarterly earnings and revenue expectations. Chevron raises dividend
• Neutral Sentiment: Analysis comparing Chevron with Exxon Mobil highlights differing long-term strategies, including Chevron’s continued emphasis on oil and gas. The approach could benefit from strong commodity prices but leaves CVX more exposed to future oil-demand and price cycles. Chevron versus Exxon Mobil analysis
• Negative Sentiment: Iraq plans to more than double its oil output over the next six years. If achieved, the added supply could pressure global crude prices and reduce the earnings benefit Chevron receives from today’s elevated prices. Iraq oil output and Chevron
• Negative Sentiment: Two Chevron insiders sold shares recently: Andrew Benjamin Walz sold 16,800 shares, while R. Hewitt Pate sold 2,470 shares. Although such transactions may reflect personal financial planning, they can create a modest sentiment overhang. Chevron insider sale report
• Negative Sentiment: A separate analysis says concerns remain centered on Chevron, including issues surrounding its Hess Midstream exposure and broader execution risks. The report may temper enthusiasm after CVX’s recent advance. Hess Midstream: The Issue Remains With Chevron

Chevron Trading Down 0.0%

Shares of CVX stock opened at $205.25 on Monday. Chevron has a fifty-two week low of $146.49 and a fifty-two week high of $214.71. 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 stock's fifty day moving average is $185.03 and its two-hundred day moving average is $188.17. The firm has a market capitalization of $405.53 billion, a P/E ratio of 19.68, a PEG ratio of 0.61 and a beta of 0.49.

Chevron (NYSE:CVX - Get Free Report) last announced its quarterly earnings data on Friday, July 31st. The oil and gas company reported $6.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.55 by $0.51. The company had revenue of $67.20 billion during the quarter, compared to analysts' expectations of $62.72 billion. Chevron had a net margin of 9.57% and a return on equity of 11.09%. Chevron's revenue was up 57.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.77 EPS. Research analysts expect that Chevron will post 16.17 earnings per share for the current fiscal year.

Chevron Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Wednesday, August 19th will be issued a $1.78 dividend. The ex-dividend date is Wednesday, August 19th. This represents a $7.12 dividend on an annualized basis and a yield of 3.5%. Chevron's dividend payout ratio is currently 68.26%.

Insiders Place Their Bets

In other Chevron news, insider Andrew Benjamin Walz sold 16,800 shares of the company's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $201.06, for a total value of $3,377,808.00. Following the transaction, the insider owned 14 shares of the company's stock, valued at $2,814.84. This represents a 99.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Michael K. Wirth sold 317,100 shares of Chevron stock in a transaction dated Friday, August 14th. The shares were 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. The disclosure for this sale is available in the SEC filing. Insiders sold 1,152,582 shares of company stock worth $225,853,661 in the last three months. 0.56% of the stock is owned by insiders.

Institutional Trading of Chevron

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Midwest Capital Advisors LLC purchased a new stake in shares of Chevron in the 1st quarter valued at $25,000. Core Wealth Advisors LLC purchased a new position in Chevron during the 4th quarter valued at about $26,000. Phillip James Consulting Co. purchased a new position in Chevron during the 4th quarter valued at about $26,000. Basso Capital Management L.P. acquired a new position in Chevron in the 4th quarter valued at about $27,000. Finally, Karpus Management Inc. acquired a new position in Chevron in the 4th quarter valued at about $27,000. 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.

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