Chevron (NYSE:CVX) Shares Up 1.1% - What's Next?

Key Points

• Chevron shares rose 1.1% on Thursday, trading near $183.69 after hitting an intraday high of $184.83, though volume was below average.
• The biggest catalysts this week are potential Iraq oilfield agreements and exploration of a new pipeline to reduce reliance on the Strait of Hormuz, which could support future production and lower geopolitical risk.
• Wall Street remains broadly constructive: Chevron has a Moderate Buy consensus rating, a target price of $206.83, and recently posted earnings that beat EPS estimates, while also paying a quarterly dividend that implies a 3.9% yield.

Chevron Corporation (NYSE:CVX - Get Free Report) shares rose 1.1% during mid-day trading on Thursday . The company traded as high as $184.83 and last traded at $183.6860. Approximately 6,156,601 shares were traded during mid-day trading, a decline of 46% from the average session volume of 11,424,254 shares. The stock had previously closed at $181.60.

More Chevron News

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron is expected to sign accords with Iraq that would advance investments in major oil fields, including West Qurna 2 and Nassiriya, signaling a potential growth path for future output and reserves. Chevron to sign MOUs with Iraq for West Qurna 2 and Nassiriya oilfields
• Positive Sentiment: The company is also exploring a new Iraqi oil pipeline to reduce dependence on the Strait of Hormuz, which could lower geopolitical shipping risk and support more reliable exports if tensions in the region persist. Chevron weighs new Iraqi oil pipeline to avoid Strait of Hormuz during Iran war
• Positive Sentiment: Chevron’s stock is also getting a mild lift from broader strength in the energy sector, which rose on the day. Sector Update: Energy Stocks Rise Thursday Afternoon
• Neutral Sentiment: Recent commentary highlighted Chevron as a dividend name and noted some analysts remain cautious, including TD Cowen’s Hold rating and lower price target, which may temper enthusiasm. Chevron Corporation (CVX) A Top Dividend Stock to Invest in According to Jim Simons’ Renaissance Technologies

Wall Street Analysts Forecast Growth

CVX has been the topic of several recent research reports. Weiss Ratings cut shares of Chevron from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, June 2nd. UBS Group reaffirmed a "buy" rating on shares of Chevron in a research note on Tuesday, June 23rd. Scotiabank boosted their target price on shares of Chevron from $168.00 to $187.00 and gave the company a "sector perform" rating in a report on Wednesday, April 22nd. Tudor Pickering raised shares of Chevron from a "hold" rating to a "buy" rating and set a $225.00 price target for the company in a research note on Thursday, April 9th. Finally, BNP Paribas Exane upgraded shares of Chevron from a "neutral" rating to an "outperform" rating and set a $174.00 price target for the company in a report on Friday, April 17th. Nineteen analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $206.83.

Chevron Stock Up 1.1%

The stock has a market capitalization of $365.83 billion, a price-to-earnings ratio of 31.83, a P/E/G ratio of 0.64 and a beta of 0.50. The business has a 50-day moving average of $181.39 and a 200-day moving average of $182.17. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.84 and a current ratio of 1.09.

Chevron (NYSE:CVX - Get Free Report) last posted its earnings results on Friday, May 1st. The oil and gas company reported $1.41 EPS for the quarter, beating analysts' consensus estimates of $1.00 by $0.41. The company had revenue of $47.56 billion for the quarter, compared to analysts' expectations of $51.86 billion. Chevron had a net margin of 5.79% and a return on equity of 6.90%. Chevron's revenue for the quarter was up 2.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.18 earnings per share. On average, sell-side analysts expect that Chevron Corporation will post 14.75 EPS for the current year.

Chevron Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Stockholders of record on Tuesday, May 19th were paid a $1.78 dividend. This represents a $7.12 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date of this dividend was Tuesday, May 19th. Chevron's payout ratio is 123.40%.

Insider Activity at Chevron

In related news, Director John B. Hess sold 380,000 shares of the stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $193.20, for a total transaction of $73,416,000.00. Following the completion of the transaction, the director owned 278,045 shares of the company's stock, valued at approximately $53,718,294. This trade represents a 57.75% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.56% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in CVX. Cornerstone Advisory LLC boosted its stake in Chevron by 0.9% during the 1st quarter. Cornerstone Advisory LLC now owns 5,625 shares of the oil and gas company's stock valued at $1,164,000 after purchasing an additional 52 shares during the period. Compton Financial Group LLC increased its stake in shares of Chevron by 1.9% in the first quarter. Compton Financial Group LLC now owns 2,944 shares of the oil and gas company's stock valued at $609,000 after purchasing an additional 56 shares during the period. Quantum Portfolio Management LLC raised its holdings in shares of Chevron by 2.7% during the first quarter. Quantum Portfolio Management LLC now owns 2,101 shares of the oil and gas company's stock valued at $435,000 after buying an additional 56 shares during the last quarter. Wealthspire Retirement LLC raised its holdings in shares of Chevron by 0.9% during the first quarter. Wealthspire Retirement LLC now owns 6,530 shares of the oil and gas company's stock valued at $1,351,000 after buying an additional 56 shares during the last quarter. Finally, D.B. Root & Company LLC boosted its position in shares of Chevron by 1.0% during the fourth quarter. D.B. Root & Company LLC now owns 5,552 shares of the oil and gas company's stock worth $846,000 after buying an additional 57 shares during the period. 72.42% of the stock is currently owned by institutional investors and hedge funds.

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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