Chevron (NYSE:CVX) Shares Up 1.4% - Time to Buy?

Key Points

• Chevron shares rose 1.4% to $202.75 as the company reported a major offshore Angola discovery, with more than 600 meters of hydrocarbon column and over 90 meters of net pay. Its proximity to existing infrastructure could support a faster, lower-cost development, though commerciality and production timing remain uncertain.
• Higher Brent crude prices, reportedly nearing $89 per barrel, support Chevron’s near-term upstream earnings and cash flow, while geopolitical disruption around the Strait of Hormuz remains a potential source of volatility and operational risk.
• Chevron posted quarterly EPS of $6.06, exceeding estimates, with revenue up 57.4% year over year, and declared a quarterly dividend of $1.78 per share. Analysts maintain a “Moderate Buy” consensus with an average price target of $207.13, although recent insider stock sales are a notable caution.

Chevron Corporation (NYSE:CVX - Get Free Report) shot up 1.4% during mid-day trading on Monday . The stock traded as high as $203.68 and last traded at $202.75. 7,064,176 shares traded hands during trading, a decline of 35% from the average session volume of 10,914,472 shares. The stock had previously closed at $200.00.

Key Stories Impacting Chevron

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron, through its Cabinda Gulf Oil Company subsidiary, reported that the 105-4X exploration well in offshore Angola’s Block 0 encountered a hydrocarbon column exceeding 600 meters (about 2,000 feet) and more than 90 meters of net pay in the Pinda reservoir. The find expands Chevron’s resource base and supports its exploration strategy. Chevron finds oil, gas condensate offshore Angola
• Positive Sentiment: The discovery is near existing offshore infrastructure, potentially allowing a faster and lower-cost tieback development. However, commerciality, additional appraisal and production timing remain to be determined. Chevron Stock Rises After Major 600-Meter Angola Oil Discovery
• Positive Sentiment: Reports that Brent crude was approaching $89 per barrel amid continued disruption around the Strait of Hormuz reinforce the near-term earnings and cash-flow outlook for major producers such as Chevron. Higher oil prices generally benefit Chevron’s upstream operations. Brent Crude Nears $89 As Hormuz Stays Disrupted
• Positive Sentiment: Chevron continues to attract income-focused investors because of its dividend, favorable analyst views and potential price-target upside. Recent earnings also showed strong year-over-year growth and an earnings beat, adding to the stock’s fundamental support.
• Neutral Sentiment: The geopolitical disruption supporting oil prices is also a risk: an escalation could increase volatility, weaken global demand or create operational and transportation challenges for energy companies.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the company. Scotiabank lifted 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. Piper Sandler started coverage on Chevron in a report on Thursday, July 23rd. They issued an "overweight" rating and a $207.00 price objective on the stock. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $216.00 price objective on shares of Chevron in a research note on Wednesday, May 6th. Wall Street Zen upgraded Chevron from a "hold" rating to a "buy" rating in a report on Saturday, August 8th. Finally, Bank of America raised their price target on shares of Chevron from $210.00 to $227.00 and gave the company a "buy" rating in a report on Tuesday, July 28th. Twenty investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $207.13.

Chevron Trading Up 1.4%

The stock has a market capitalization of $400.59 billion, a price-to-earnings ratio of 19.44, a P/E/G ratio of 0.61 and a beta of 0.49. 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 firm has a fifty day moving average of $183.30 and a 200-day moving average of $187.01.

Chevron (NYSE:CVX - Get Free Report) last released its quarterly earnings data on Friday, July 31st. The oil and gas company reported $6.06 EPS for the quarter, beating the consensus estimate of $5.55 by $0.51. Chevron had a return on equity of 11.09% and a net margin of 9.57%.The company had revenue of $67.20 billion for the quarter, compared to analyst estimates of $62.72 billion. During the same period last year, the company posted $1.77 earnings per share. The firm's revenue was up 57.4% compared to the same quarter last year. As a group, equities analysts predict that Chevron Corporation will post 15.86 earnings per share for the current fiscal year.

Chevron Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Wednesday, August 19th will be given a dividend of $1.78 per share. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $7.12 annualized dividend and a yield of 3.5%. Chevron's payout ratio is 68.26%.

Insider Buying and Selling

In other news, CEO Michael K. Wirth sold 5,547 shares of Chevron stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $187.00, for a total transaction of $1,037,289.00. Following the sale, the chief executive officer owned 26,308 shares in the company, valued at $4,919,596. This trade represents a 17.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director John B. Hess sold 710,665 shares of the business's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $194.10, for a total transaction of $137,940,076.50. Following the transaction, the director directly owned 363,711 shares in the company, valued at approximately $70,596,305.10. The trade was a 66.15% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 1,196,212 shares of company stock valued at $231,819,366. 0.56% of the stock is owned by company insiders.

Institutional Investors Weigh In On Chevron

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

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source