Chevron (NYSE:CVX) Shares Up 2.6% - Here's What Happened

Key Points

• Chevron shares rose 2.6% on Monday, trading as high as $196.20 as investor interest picked up. Trading volume was below average, with about 9.8 million shares changing hands.
• One major catalyst was Chevron’s agreement to sell some Asia-Pacific assets to ENEOS for about $2.2 billion, which should help streamline the portfolio and bring in cash. The move fits a broader strategy of focusing on higher-return assets.
• Chevron also got support from bullish sector sentiment, including CEO Mike Wirth’s warning about possible physical oil shortages and heavy call-option buying. Separately, the company’s latest earnings beat profit expectations and it recently declared a $1.78 quarterly dividend.

Shares of Chevron Corporation (NYSE:CVX - Get Free Report) traded up 2.6% during trading on Monday . The stock traded as high as $196.20 and last traded at $196.0820. 9,786,259 shares were traded during mid-day trading, a decline of 20% from the average session volume of 12,276,162 shares. The stock had previously closed at $191.10.

More Chevron News

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron agreed to sell some Asia-Pacific assets to Japan’s ENEOS for about $2.2 billion, a move that should streamline the company’s portfolio and add cash while reinforcing the market’s view that management is focusing on higher-return assets. Chevron to Divest Some Asia-Pacific Assets to Japan's Eneos
• Positive Sentiment: Chevron CEO Mike Wirth’s warning about possible physical oil shortages has added to the bullish backdrop for energy stocks, since tighter crude supplies can support oil prices and improve upstream profitability for Chevron. Chevron’s CEO Just Warned of Physical Oil Shortages
• Positive Sentiment: Traders also piled into Chevron call options at more than double the normal volume, which can signal rising expectations for further upside in the shares.
• Neutral Sentiment: Chevron is also being highlighted in market commentary as a trending and closely watched stock, reflecting heightened investor interest rather than a direct change in fundamentals. Chevron Corporation (CVX) Is a Trending Stock
• Neutral Sentiment: Analyst-focused coverage on Chevron’s valuation and dividend appeal may be supporting the stock, but the article itself does not indicate a new rating change or fresh catalyst. Is Chevron (CVX) a Buy as Wall Street Analysts Look Optimistic?
• Neutral Sentiment: A broader energy-sector piece on Shell’s LNG strength is mostly industry context, but it can reinforce optimism around the sector as a whole. How Shell's LNG Strength May Position It for Higher Returns Ahead

Analysts Set New Price Targets

CVX has been the subject of a number of research reports. Wall Street Zen raised shares of Chevron from a "sell" rating to a "hold" rating in a report on Saturday, January 31st. Bank of America increased their price objective on Chevron from $188.00 to $206.00 and gave the stock a "buy" rating in a research report on Monday, March 2nd. Sanford C. Bernstein cut their price target on Chevron from $216.00 to $204.00 and set a "market perform" rating for the company in a research note on Monday, May 11th. BMO Capital Markets reaffirmed an "outperform" rating and set a $190.00 price target on shares of Chevron in a report on Monday, February 2nd. Finally, UBS Group boosted their price objective on shares of Chevron from $218.00 to $220.00 and gave the company a "buy" rating in a research note on Monday, May 4th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $204.13.

Chevron Trading Up 2.6%

The firm has a market capitalization of $390.52 billion, a PE ratio of 33.98, a P/E/G ratio of 0.64 and a beta of 0.51. The business has a 50 day moving average price of $193.14 and a 200-day moving average price of $173.38. The company has a current ratio of 1.09, a quick ratio of 0.84 and a debt-to-equity ratio of 0.21.

Chevron (NYSE:CVX - Get Free Report) last posted its quarterly earnings results on Friday, May 1st. The oil and gas company reported $1.41 earnings per share for the quarter, beating analysts' consensus estimates of $1.00 by $0.41. Chevron had a return on equity of 6.90% and a net margin of 5.79%.The firm had revenue of $47.56 billion for the quarter, compared to the consensus estimate of $51.86 billion. During the same period in the previous year, the business earned $2.18 earnings per share. The company's revenue for the quarter was up 2.1% compared to the same quarter last year. Analysts expect that Chevron Corporation will post 15.43 earnings per share for the current year.

Chevron Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Tuesday, May 19th will be issued a $1.78 dividend. This represents a $7.12 dividend on an annualized basis and a dividend yield of 3.6%. The ex-dividend date is Tuesday, May 19th. Chevron's dividend payout ratio (DPR) is currently 123.40%.

Insider Transactions at Chevron

In related news, insider R. Hewitt Pate sold 40,200 shares of the business's stock in a transaction dated 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 sale, the insider owned 8,638 shares of the company's stock, valued at approximately $1,842,485.40. The trade was a 82.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director John B. Hess sold 195,000 shares of the company's stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $184.78, for a total transaction of $36,032,100.00. Following the transaction, the director owned 658,045 shares in the company, valued at $121,593,555.10. The trade was a 22.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 803,570 shares of company stock valued at $151,969,798. 0.56% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Dakota Wealth Management grew its stake in shares of Chevron by 14.9% during the 4th quarter. Dakota Wealth Management now owns 83,265 shares of the oil and gas company's stock valued at $12,690,000 after buying an additional 10,822 shares during the period. Brooklyn FI LLC purchased a new position in shares of Chevron in the 3rd quarter worth $431,000. Clear Trail Advisors LLC purchased a new position in shares of Chevron in the 4th quarter worth $10,167,000. Finemark National Bank & Trust boosted its holdings in Chevron by 40.3% in the third quarter. Finemark National Bank & Trust now owns 56,535 shares of the oil and gas company's stock valued at $8,779,000 after acquiring an additional 16,243 shares during the last quarter. Finally, Curtis Advisory Group LLC purchased a new stake in Chevron during the fourth quarter valued at about $1,381,000. Institutional investors and hedge funds own 72.42% of the company's stock.

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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