Chevron (NYSE:CVX) Stock Price Down 2.4% - Here's Why

Key Points

• Chevron shares fell 2.4% on Wednesday, trading as low as $170.86 as volume came in below average. The decline came amid broader weakness in oil-related sentiment.
• Investor attention is shifting to Chevron’s 20-year Microsoft power deal for a 2.67-gigawatt natural gas facility in Texas, which could make Chevron a major energy supplier for AI data centers and create a new growth avenue.
• Despite the stock dip, Wall Street remains generally constructive: Chevron has a Moderate Buy consensus with an average target price of $205.70, while the company continues to offer a 4.1% dividend yield.

Chevron Corporation (NYSE:CVX - Get Free Report)'s stock price was down 2.4% on Wednesday . The company traded as low as $170.86 and last traded at $171.7320. 10,368,702 shares traded hands during trading, a decline of 11% from the average daily volume of 11,705,406 shares. The stock had previously closed at $175.98.

Chevron News Roundup

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron’s 20-year power deal with Microsoft for a 2.67-gigawatt natural gas facility in West Texas positions the company as a key supplier of electricity for AI data centers and could create a long-duration growth opportunity. Chevron and Microsoft Partner on Landmark Texas AI Power Project
• Positive Sentiment: Texas Pacific Land agreed to provide land and water support for Chevron’s large-scale power project, reducing development hurdles and strengthening Project Kilby’s execution prospects. Texas Pacific Land Partners with Chevron on Data Center Project
• Positive Sentiment: Analysts and media coverage highlight Chevron’s move into AI infrastructure as a potentially underappreciated earnings driver, with natural gas power economics seen as favorable for the project. Chevron's Microsoft Power Deal Highlights 'Underappreciated' Fuel Cost Economics, UBS Securities Says
• Neutral Sentiment: Chevron is gaining visibility as an AI energy supplier, but the investment case still depends on how quickly the project scales and whether returns justify the capital spend. Has Chevron Found a New Growth Platform?
• Negative Sentiment: At the same time, weaker crude prices and commentary about possible DOJ scrutiny of Big Oil gasoline pricing are weighing on sentiment across the sector, including CVX. CVX, XOM, COP Slip Overnight As Trump Orders DOJ Probe Into Big Oil's Gasoline Prices
• Negative Sentiment: Some recent market commentary remains cautious, arguing that falling oil prices could pressure Chevron’s valuation despite its strong balance sheet and dividend profile. Prediction: Chevron Could See a 13% Drop as Oil Slips

Wall Street Analyst Weigh In

CVX has been the subject of several research reports. Bank of America raised their price objective on Chevron from $188.00 to $206.00 and gave the stock a "buy" rating in a research note on Monday, March 2nd. BNP Paribas Exane raised Chevron from a "neutral" rating to an "outperform" rating and set a $174.00 target price on the stock in a research report on Friday, April 17th. Scotiabank upped 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. Barclays increased their price target on Chevron from $192.00 to $213.00 and gave the company an "equal weight" rating in a research report on Tuesday, May 26th. Finally, Mizuho lifted their price target on Chevron from $225.00 to $230.00 and gave the stock an "outperform" rating in a research note on Wednesday, May 27th. Eighteen research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $205.70.

Chevron Stock Performance

The firm's 50 day simple moving average is $186.07 and its 200-day simple moving average is $179.55. The company has a market capitalization of $342.02 billion, a price-to-earnings ratio of 29.76, a P/E/G ratio of 0.57 and a beta of 0.48. 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 issued its earnings results on Friday, May 1st. The oil and gas company reported $1.41 EPS for the quarter, topping the consensus estimate of $1.00 by $0.41. The business had revenue of $47.56 billion during the quarter, compared to analysts' expectations of $51.86 billion. Chevron had a return on equity of 6.90% and a net margin of 5.79%.Chevron's revenue was up 2.1% compared to the same quarter last year. During the same quarter last year, the firm posted $2.18 earnings per share. Analysts expect that Chevron Corporation will post 15.88 EPS for the current year.

Chevron Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Tuesday, May 19th were paid a dividend of $1.78 per share. This represents a $7.12 annualized dividend and a yield of 4.1%. The ex-dividend date of this dividend was Tuesday, May 19th. Chevron's payout ratio is 123.40%.

Insider Transactions at Chevron

In related news, insider R. Hewitt Pate sold 40,200 shares of the firm's stock in a transaction that occurred on 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 completion of the sale, the insider directly owned 8,638 shares in the company, valued at approximately $1,842,485.40. This trade represents a 82.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director John B. Hess sold 380,000 shares of the business'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 $53,718,294. The trade was a 57.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 615,200 shares of company stock worth $118,022,760 in the last quarter. 0.56% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Chevron

A number of institutional investors have recently modified their holdings of CVX. Cornerstone Advisory LLC increased its position in Chevron by 0.9% in the 1st quarter. Cornerstone Advisory LLC now owns 5,625 shares of the oil and gas company's stock worth $1,164,000 after purchasing an additional 52 shares during the last quarter. Compton Financial Group LLC lifted its holdings in shares of Chevron by 1.9% during the 1st quarter. Compton Financial Group LLC now owns 2,944 shares of the oil and gas company's stock valued at $609,000 after buying an additional 56 shares during the last quarter. Quantum Portfolio Management LLC grew its stake in shares of Chevron by 2.7% in the 1st 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 in the last quarter. Wealthspire Retirement LLC increased its holdings in Chevron by 0.9% in the first quarter. Wealthspire Retirement LLC now owns 6,530 shares of the oil and gas company's stock worth $1,351,000 after buying an additional 56 shares during the last quarter. Finally, D.B. Root & Company LLC raised its position in 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 valued at $846,000 after acquiring an additional 57 shares in the last quarter. 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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