Chevron (NYSE:CVX) Shares Down 1.5% on Insider Selling

Key Points

• Chevron shares fell 1.5% to about $186.42 after significant insider selling, including CEO Michael Wirth’s sale of 5,547 shares and director John Hess’s sale of more than 810,000 shares.
• Analysts remain broadly bullish, with 18 Buy ratings, six Holds and one Sell; Chevron has a consensus “Moderate Buy” rating and a $207.48 price target.
• Chevron’s latest quarter beat expectations, reporting $6.06 EPS and $67.2 billion in revenue, while maintaining a quarterly dividend of $1.78 per share, equivalent to a 3.8% yield.

Chevron Corporation (NYSE:CVX - Get Free Report)'s share price was down 1.5% on Friday after an insider sold shares in the company. The stock traded as low as $185.87 and last traded at $186.4220. Approximately 6,563,533 shares traded hands during mid-day trading, a decline of 40% from the average session volume of 11,013,506 shares. The stock had previously closed at $189.23.

Specifically, CEO Michael K. Wirth sold 5,547 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $187.00, for a total transaction of $1,037,289.00. Following the sale, the chief executive officer directly owned 26,308 shares of the company's stock, valued at approximately $4,919,596. This represents a 17.41% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director John B. Hess sold 100,000 shares of the business's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $194.26, for a total value of $19,426,000.00. Following the completion of the transaction, the director directly owned 178,045 shares of the company's stock, valued at approximately $34,587,021.70. This trade represents a 35.97% decrease in their position. The SEC filing for this sale provides additional information. In related news, Director John B. Hess sold 710,665 shares of the company's stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $194.10, for a total transaction of $137,940,076.50. Following the completion of the sale, the director owned 363,711 shares of the company's stock, valued at $70,596,305.10. This represents a 66.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website.

Analysts Set New Price Targets

Several equities analysts have recently commented on CVX shares. Jefferies Financial Group restated a "buy" rating and issued a $216.00 target price on shares of Chevron in a research report on Friday, July 10th. BNP Paribas Exane raised shares of Chevron from a "neutral" rating to an "outperform" rating and set a $174.00 price objective on the stock in a research note on Friday, April 17th. Wolfe Research upgraded Chevron from a "peer perform" rating to an "outperform" rating and set a $210.00 target price for the company in a research note on Thursday, July 2nd. Scotiabank raised their target price on Chevron from $168.00 to $187.00 and gave the company a "sector perform" rating in a report on Wednesday, April 22nd. Finally, The Goldman Sachs Group reissued a "buy" rating and set a $216.00 price target on shares of Chevron in a report on Wednesday, May 6th. Eighteen equities research 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. According to data from MarketBeat, Chevron has a consensus rating of "Moderate Buy" and a consensus price target of $207.48.

Key Headlines Impacting Chevron

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron’s latest quarter remains the key bullish catalyst: net income reached $12.1 billion, compared with $2.5 billion a year earlier, while reported EPS of $6.06 exceeded the $5.55 consensus estimate. Elevated energy prices tied to Middle East disruptions significantly boosted results. Chevron earnings article
• Positive Sentiment: Analysts remain constructive, citing record production, multibillion-dollar debt reduction, strong free cash flow and a 20-year power agreement with Microsoft that could support Chevron’s long-term growth and financial flexibility. TD Cowen also forecasts meaningful share-price appreciation. Wall Street bullish on Chevron article
• Positive Sentiment: Chevron continues to attract income-focused investors because of its dividend, scale and balance-sheet strength. Its expansion of the North American base-oils distribution network provides an additional downstream growth initiative. Dividend-paying energy giants article
• Neutral Sentiment: Options premiums remain elevated because of the Gulf conflict. That volatility may benefit sophisticated investors selling puts, but it also signals that the market expects unusually large swings in energy stocks. Gulf uncertainty and oil majors article
• Negative Sentiment: A director sold more than 810,000 CVX shares for approximately $157 million, substantially reducing his holdings. Although the sales may be personal or transaction-related, their timing can add to investor caution after the recent rally. Chevron insider trading report
• Negative Sentiment: The earnings surge is heavily linked to Middle Eastern supply disruptions and could prove difficult to sustain if geopolitical tensions ease. Chevron and other majors are also facing criticism that windfall gains and elevated fuel prices could invite political or regulatory pressure. Chevron valuation analysis article

Chevron Price Performance

The business's 50-day simple moving average is $182.29 and its two-hundred day simple moving average is $185.80. The stock has a market cap of $371.28 billion, a price-to-earnings ratio of 17.87, a price-to-earnings-growth ratio of 0.57 and a beta of 0.49. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.09 and a quick ratio of 0.84.

Chevron (NYSE:CVX - Get Free Report) last issued its earnings results on Friday, July 31st. The oil and gas company reported $6.06 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $5.55 by $0.51. The business had revenue of $67.20 billion during the quarter, compared to analysts' expectations of $62.72 billion. Chevron had a return on equity of 11.14% and a net margin of 9.57%.The business's revenue for the quarter was up 57.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.77 EPS. Research analysts expect that Chevron Corporation will post 15.88 earnings per share for the current year.

Chevron Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Wednesday, August 19th will be issued a dividend of $1.78 per share. This represents a $7.12 dividend on an annualized basis and a dividend yield of 3.8%. The ex-dividend date is Wednesday, August 19th. Chevron's payout ratio is 68.26%.

Institutional Trading of Chevron

Several institutional investors have recently modified their holdings of the business. Midwest Capital Advisors LLC bought a new stake in shares of Chevron in the 1st quarter valued at about $25,000. Core Wealth Advisors LLC bought a new position in shares of Chevron during the fourth quarter worth about $26,000. Phillip James Consulting Co. acquired a new stake in Chevron during the 4th quarter valued at approximately $26,000. Basso Capital Management L.P. acquired a new stake in Chevron during the 4th quarter valued at approximately $27,000. Finally, Karpus Management Inc. bought a new position in Chevron during the 4th quarter worth approximately $27,000. Institutional investors own 72.42% of the company's stock.

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.

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