Chevron (NYSE:CVX) Shares Down 2.2% - Time to Sell?

Key Points

• Shares fell 2.2% on Friday to as low as $177.74 with trading volume ~20% above average, a pullback blamed on lower oil after the Strait of Hormuz reopened and a reported analyst downgrade.
• Analyst sentiment remains broadly positive—multiple upgrades and target increases (average target ~$194.21)—and Chevron's strong balance sheet plus the $53B Hess acquisition are cited as supporting longer‑term upside.
• Chevron raised its quarterly dividend to $1.78 (annualized $7.12), a ~3.9% yield, but the payout ratio is high (~106.9%) and insiders have sold a large amount of stock (≈779,407 shares, ≈$146M over three months).

Shares of Chevron Corporation (NYSE:CVX - Get Free Report) dropped 2.2% on Friday . The stock traded as low as $177.74 and last traded at $184.08. Approximately 15,601,852 shares traded hands during trading, an increase of 20% from the average daily volume of 13,026,872 shares. The stock had previously closed at $188.15.

Key Headlines Impacting Chevron

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: High yield and income appeal — Coverage highlights Chevron as a top dividend stock and notes very attractive forward yields for early buyers, supporting investor demand for income. Read More.
• Positive Sentiment: Strong balance sheet and capital resilience — Analysts and commentary rank Chevron just behind Exxon on financial strength, suggesting it can withstand oil‑price swings and sustain buybacks/dividends. Read More.
• Positive Sentiment: Buy‑the‑dip sentiment and options trade ideas — Several outlets and services are pitching CVX as a tactical buy after the pullback, which could attract short‑term dip buyers. Read More.
• Positive Sentiment: Hess acquisition seen as strategically accretive — Analysis argues the $53B Hess deal may have been timed well and should add production and cash flow over time, supporting long‑term upside. Read More.
• Neutral Sentiment: Peer comparison — A note compares Petrobras and Chevron, highlighting Petrobras’ growth edge; useful for investors weighing growth vs stability but not an immediate catalyst. Read More.
• Neutral Sentiment: Regulatory/bill developments — The House passed H.R. 6409 relating to foreign emissions treatment; impact on Chevron is uncertain and longer‑term if enacted. Read More.
• Negative Sentiment: Immediate oil‑price shock and Strait reopening — Markets rallied broadly but oil prices fell after the Strait of Hormuz reopened, prompting a pullback in oil majors including Chevron. Read More.
• Negative Sentiment: Analyst downgrade and short‑term selling — A reported analyst downgrade contributed to yesterday’s slide and continues to pressure the name amid lower oil. Read More.
• Negative Sentiment: Headline risk from Iran war developments — Commentary notes that signs the Iran‑driven risk premium is easing (or the war ending) reduced the war‑related premium that had boosted CVX, producing volatility. Read More.

Analyst Ratings Changes

A number of research firms recently issued reports on CVX. Tudor Pickering raised shares of Chevron from a "hold" rating to a "buy" rating and set a $225.00 target price for the company in a research report on Thursday, April 9th. Bank of America increased their target price on shares of Chevron from $188.00 to $206.00 and gave the stock a "buy" rating in a research report on Monday, March 2nd. Melius Research raised shares of Chevron from a "hold" rating to a "buy" rating and set a $205.00 target price for the company in a research report on Tuesday, February 17th. Wells Fargo & Company increased their target price on shares of Chevron from $204.00 to $222.00 and gave the stock an "overweight" rating in a research report on Thursday, April 9th. Finally, BMO Capital Markets reissued an "outperform" rating and set a $190.00 target price on shares of Chevron in a research report on Monday, February 2nd. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $194.21.

Chevron Price Performance

The company has a debt-to-equity ratio of 0.21, a current ratio of 1.15 and a quick ratio of 0.86. The company's 50-day simple moving average is $192.28 and its 200-day simple moving average is $168.77. The company has a market cap of $366.74 billion, a price-to-earnings ratio of 27.64, a P/E/G ratio of 1.18 and a beta of 0.60.

Chevron (NYSE:CVX - Get Free Report) last issued its quarterly earnings data on Friday, January 30th. The oil and gas company reported $1.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.44 by $0.08. Chevron had a net margin of 6.51% and a return on equity of 7.89%. The company had revenue of $45.79 billion during the quarter, compared to the consensus estimate of $48.18 billion. During the same quarter last year, the company earned $2.06 earnings per share. Chevron's revenue for the quarter was down 10.2% on a year-over-year basis. On average, equities research analysts anticipate that Chevron Corporation will post 10.79 EPS for the current year.

Chevron Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 10th. Stockholders of record on Tuesday, February 17th were given a dividend of $1.78 per share. The ex-dividend date of this dividend was Tuesday, February 17th. This is an increase from Chevron's previous quarterly dividend of $1.71. This represents a $7.12 dividend on an annualized basis and a dividend yield of 3.9%. Chevron's dividend payout ratio is 106.91%.

Insider Buying and Selling at Chevron

In other news, insider R. Hewitt Pate sold 40,200 shares of the firm's stock in a transaction that occurred on Monday, March 30th. The shares were sold at an average price of $213.30, for a total transaction of $8,574,660.00. Following the completion of the sale, the insider owned 8,638 shares of the company's stock, valued at approximately $1,842,485.40. This trade represents a 82.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Vice Chairman Mark A. Nelson sold 139,600 shares of the firm's stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $187.92, for a total transaction of $26,233,632.00. Following the sale, the insider directly owned 11,337 shares of the company's stock, valued at $2,130,449.04. The trade was a 92.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 779,407 shares of company stock valued at $145,972,971. Corporate insiders own 0.21% of the company's stock.

Hedge Funds Weigh In On Chevron

Several large investors have recently added to or reduced their stakes in CVX. United Bank lifted its stake in Chevron by 7.7% during the second quarter. United Bank now owns 11,079 shares of the oil and gas company's stock worth $1,586,000 after purchasing an additional 796 shares during the last quarter. Schnieders Capital Management LLC. lifted its stake in Chevron by 9.0% during the second quarter. Schnieders Capital Management LLC. now owns 50,839 shares of the oil and gas company's stock worth $7,280,000 after purchasing an additional 4,214 shares during the last quarter. BNP Paribas lifted its stake in Chevron by 76.4% in the second quarter. BNP Paribas now owns 441 shares of the oil and gas company's stock valued at $63,000 after buying an additional 191 shares during the last quarter. Osterweis Capital Management Inc. lifted its stake in Chevron by 678.9% in the second quarter. Osterweis Capital Management Inc. now owns 1,363 shares of the oil and gas company's stock valued at $195,000 after buying an additional 1,188 shares during the last quarter. Finally, Main Street Financial Solutions LLC lifted its stake in Chevron by 3.6% in the second quarter. Main Street Financial Solutions LLC now owns 16,052 shares of the oil and gas company's stock valued at $2,299,000 after buying an additional 553 shares during the last quarter. 72.42% of the stock is currently owned by 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.

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