Chevron (NYSE:CVX) Stock Price Down 1.3% - Here's Why

Key Points

• Chevron shares fell 1.3% in midday trading, even as the stock has recently been supported by broader bullish analyst commentary and a consensus “Moderate Buy” rating.
• Analysts remain mostly positive after Chevron’s strong first-quarter earnings, with firms like Mizuho, RBC, and UBS highlighting upside potential, free cash flow strength, and dividend support. Chevron’s average price target now sits around $205.70.
• The company continues to attract income-focused investors thanks to its quarterly dividend of $1.78 per share, which annualizes to $7.12 and yields about 3.9%, though its payout ratio is high at 123.4%.

Chevron Corporation (NYSE:CVX - Get Free Report)'s stock price traded down 1.3% during mid-day trading on Wednesday . The stock traded as low as $180.67 and last traded at $182.2390. 9,091,987 shares changed hands during trading, a decline of 25% from the average session volume of 12,200,249 shares. The stock had previously closed at $184.71.

Chevron News Roundup

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Mizuho raised its price target on Chevron to $230 from $225 and kept an outperform rating, implying meaningful upside from current levels.
• Positive Sentiment: RBC Capital and UBS reiterated bullish views after Chevron’s strong first-quarter results, reinforcing the view that the company can keep generating substantial free cash flow and supporting its dividend. Article Title
• Positive Sentiment: Recent coverage highlighted Chevron’s Mediterranean gas expansion, including drilling at Egypt’s Narges field and a 20-year supply agreement tied to the Leviathan partnership, which could strengthen long-term production growth and valuation. Article Title
• Positive Sentiment: Several articles emphasized Chevron as a durable dividend stock and a favorite among income-focused energy investors, keeping the company in the spotlight for long-term holders.
• Neutral Sentiment: Chevron shareholders rejected a proposal to separate the board chair and CEO roles, preserving the company’s current governance structure. The vote was not a major operational change, but it may reassure management while leaving governance critics disappointed. Article Title
• Neutral Sentiment: General market commentary continues to frame Chevron as a high-quality energy holding versus Treasuries and other income alternatives, but these views are more supportive of the long-term thesis than a direct near-term catalyst.

Analyst Ratings Changes

CVX has been the topic of a number of analyst reports. Sanford C. Bernstein lowered their target price on shares of Chevron from $216.00 to $204.00 and set a "market perform" rating on the stock in a research note on Monday, May 11th. Bank of America upped their target price on shares of Chevron from $188.00 to $206.00 and gave the company a "buy" rating in a research note on Monday, March 2nd. HSBC raised shares of Chevron from a "hold" rating to a "buy" rating and set a $215.00 target price on the stock in a research note on Friday, March 20th. BMO Capital Markets reissued an "outperform" rating and issued a $190.00 target price on shares of Chevron in a research note on Monday, February 2nd. Finally, Barclays upped their target price on shares of Chevron from $192.00 to $213.00 and gave the company an "equal weight" rating in a research note on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $205.70.

Chevron Stock Performance

The stock has a market capitalization of $362.95 billion, a price-to-earnings ratio of 31.58, a price-to-earnings-growth ratio of 0.63 and a beta of 0.51. The company has a quick ratio of 0.84, a current ratio of 1.09 and a debt-to-equity ratio of 0.21. The stock's 50-day simple moving average is $193.18 and its 200 day simple moving average is $175.24.

Chevron (NYSE:CVX - Get Free Report) last released its quarterly 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 firm had revenue of $47.56 billion for the quarter, compared to analyst estimates of $51.86 billion. Chevron had a net margin of 5.79% and a return on equity of 6.90%. The company's revenue for the quarter was up 2.1% compared to the same quarter last year. During the same period in the previous year, the business earned $2.18 earnings per share. Analysts expect that Chevron Corporation will post 15.74 earnings per share for the current fiscal year.

Chevron Announces Dividend

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

Insider Transactions at Chevron

In other news, Director John B. Hess sold 380,000 shares of the company's 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 transaction, the director directly owned 278,045 shares in the company, valued at approximately $53,718,294. This represents a 57.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible 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 stock was sold at an average price of $188.65, for a total transaction of $10,941,700.00. Following the transaction, the insider owned 8,558 shares in the company, valued at $1,614,466.70. The trade was a 87.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 1,179,699 shares of company stock valued at $224,675,517. 0.56% of the stock is owned by company insiders.

Hedge Funds Weigh In On Chevron

A number of large investors have recently modified their holdings of the stock. Vanguard Group Inc. lifted its position in shares of Chevron by 17.9% during the third quarter. Vanguard Group Inc. now owns 183,790,028 shares of the oil and gas company's stock worth $28,540,753,000 after purchasing an additional 27,961,463 shares in the last quarter. State Street Corp boosted its position in shares of Chevron by 9.1% in the 3rd quarter. State Street Corp now owns 152,605,988 shares of the oil and gas company's stock worth $23,698,184,000 after purchasing an additional 12,789,399 shares during the last quarter. Berkshire Hathaway Inc boosted its position in shares of Chevron by 6.6% in the 4th quarter. Berkshire Hathaway Inc now owns 130,156,362 shares of the oil and gas company's stock worth $19,837,131,000 after purchasing an additional 8,091,570 shares during the last quarter. Geode Capital Management LLC lifted its stake in Chevron by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 43,613,011 shares of the oil and gas company's stock valued at $6,620,187,000 after buying an additional 134,890 shares during the period. Finally, Charles Schwab Investment Management Inc. lifted its stake in Chevron by 2.7% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 36,036,844 shares of the oil and gas company's stock valued at $5,492,377,000 after buying an additional 961,341 shares during the period. 72.42% of the stock is currently owned by institutional investors and hedge funds.

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.

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