Chevron (NYSE:CVX) Shares Down 2.5% Following Analyst Downgrade

Key Points

• Shares down 2.5% after TD Cowen cut its price target from $214 to $204 and kept a hold rating; Chevron traded as low as $184.60 and was last at $186.95 on mid‑day volume of about 12.08M (8% below average).
• Analyst views are mixed — MarketBeat shows one Strong Buy, 16 Buy, five Hold and four Sell, resulting in a consensus rating of Moderate Buy and a consensus target price of $192.79.
• Significant insider selling: CFO Eimear Bonner sold 32,100 shares and R. Hewitt Pate sold 58,000, with insiders offloading 782,607 shares (~$146.5M) in the last 90 days and insiders now owning just 0.20% of the stock.

Chevron Corporation (NYSE:CVX - Get Free Report)'s stock price dropped 2.5% during trading on Tuesday after TD Cowen lowered their price target on the stock from $214.00 to $204.00. TD Cowen currently has a hold rating on the stock. Chevron traded as low as $184.60 and last traded at $186.95. Approximately 12,077,216 shares were traded during mid-day trading, a decline of 8% from the average daily volume of 13,123,500 shares. The stock had previously closed at $191.78.

A number of other equities research analysts also recently issued reports on CVX. Zacks Research upgraded Chevron from a "hold" rating to a "strong-buy" rating in a research report on Friday, April 3rd. Freedom Capital downgraded Chevron from a "hold" rating to a "strong sell" rating in a research report on Tuesday, January 6th. Mizuho upped their price objective on Chevron from $206.00 to $217.00 and gave the company an "outperform" rating in a research report on Tuesday, March 17th. JPMorgan Chase & Co. upgraded Chevron from a "neutral" rating to an "overweight" rating and set a $176.00 price objective on the stock in a research report on Tuesday, January 20th. Finally, Barclays upped their price objective on Chevron from $172.00 to $180.00 and gave the company an "equal weight" rating in a research report on Monday, March 16th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, five have issued a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, Chevron has an average rating of "Moderate Buy" and a consensus target price of $192.79.

Insider Activity

In other news, CFO Eimear P. Bonner sold 32,100 shares of the company's stock in a transaction that occurred on Friday, January 30th. The stock was sold at an average price of $175.01, for a total transaction of $5,617,821.00. Following the transaction, the chief financial officer owned 4,366 shares of the company's stock, valued at approximately $764,093.66. This represents a 88.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider R. Hewitt Pate sold 58,000 shares of the company's stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $188.65, for a total value of $10,941,700.00. Following the transaction, the insider directly owned 8,558 shares in the company, valued at approximately $1,614,466.70. This represents a 87.14% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 782,607 shares of company stock valued at $146,510,571. 0.20% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Chevron

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron agreed an asset swap that raises its stake in the Petroindependencia JV to ~49%, consolidating heavy‑oil exposure in the Orinoco Belt — a longer‑term value play if approvals proceed. Chevron Consolidates Venezuela Heavy Oil Position in Asset Swap
• Positive Sentiment: Analysts have been lifting targets (Royal Bank of Canada raised its PT to $220) and some shops upgraded the stock, providing near‑term valuation support. Benzinga coverage of analyst actions
• Positive Sentiment: High‑profile endorsements and institutional flows — Jim Cramer publicly favoring Chevron and filings showing Berkshire Hathaway increased its CVX position — add retail and long‑term investor interest. Jim Cramer Says: “Exxon Mobil’s Fine, But Chevron’s a Better Company”
• Positive Sentiment: Operational catalysts: recent Gulf discovery and Chevron’s guidance for stronger Q1 profits amid Middle East tensions give the stock leverage to rising oil prices. Chevron (CVX) Stock Surges on Gulf Discovery and Analyst Price Target Upgrades
• Neutral Sentiment: Macro backdrop: oil rallied on Strait of Hormuz/geo‑political risk which benefits producers, but the same volatility can cause rapid re‑rating and wide intraday swings. MarketBeat: The $100 Barrel Is Back
• Negative Sentiment: Partner/approval uncertainty: Venezuelan firm Suelopetrol says it has not been notified of Chevron’s stake increase — introduces timing and governance risk that could delay value realization. Suelopetrol has not been notified of Chevron's expansion at Venezuela joint venture, company says
• Negative Sentiment: Analyst caution and near‑term headwinds: some firms (TD Cowen/others) emphasize near‑term earnings pressure and have stayed cautious, which can cap immediate upside. TipRanks: Near‑term earnings headwinds

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Phillip James Consulting Co. bought a new position in shares of Chevron during the fourth quarter valued at approximately $26,000. Core Wealth Advisors LLC bought a new position in Chevron in the fourth quarter worth approximately $26,000. Karpus Management Inc. bought a new position in Chevron in the fourth quarter worth approximately $27,000. Basso Capital Management L.P. bought a new position in Chevron in the fourth quarter worth approximately $27,000. Finally, Quattro Advisors LLC bought a new position in Chevron in the fourth quarter worth approximately $27,000. Institutional investors own 72.42% of the company's stock.

Chevron Stock Performance

The company has a market cap of $372.46 billion, a P/E ratio of 28.07, a PEG ratio of 1.40 and a beta of 0.60. The firm has a 50 day moving average of $191.85 and a 200-day moving average of $168.33. The company has a quick ratio of 0.86, a current ratio of 1.15 and a debt-to-equity ratio of 0.21.

Chevron (NYSE:CVX - Get Free Report) last announced its quarterly earnings data on Friday, January 30th. The oil and gas company reported $1.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.44 by $0.08. Chevron had a return on equity of 7.89% and a net margin of 6.51%.The company had revenue of $45.79 billion for the quarter, compared to analysts' expectations of $48.18 billion. During the same quarter in the prior year, the firm earned $2.06 earnings per share. Chevron's revenue was down 10.2% compared to the same quarter last year. As a group, sell-side analysts anticipate that Chevron Corporation will post 10.79 EPS for the current fiscal year.

Chevron Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 10th. Investors of record on Tuesday, February 17th were paid a $1.78 dividend. This represents a $7.12 annualized dividend and a yield of 3.8%. This is an increase from Chevron's previous quarterly dividend of $1.71. The ex-dividend date of this dividend was Tuesday, February 17th. Chevron's payout ratio is currently 106.91%.

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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