Chevron (NYSE:CVX) Stock Price Up 1.7% - Should You Buy?

Key Points

• Chevron shares rose 1.7% as crude oil prices moved higher on renewed Middle East tensions, which could support the company’s upstream revenue and cash flow. The article says investors are betting tighter supply and possible disruptions will keep oil prices elevated.
• Wall Street sentiment remains positive overall, with several analysts raising price targets and the consensus rating at Moderate Buy. The average price target sits at $205.70, above the recent trading level.
• Chevron recently reported earnings of $1.41 per share, beating expectations, while also declaring a quarterly dividend of $1.78 per share for a 3.8% yield. However, insiders have been selling shares, including a large sale by director John B. Hess.

Shares of Chevron Corporation (NYSE:CVX - Get Free Report) rose 1.7% during trading on Monday . The company traded as high as $187.94 and last traded at $185.5790. Approximately 8,665,354 shares changed hands during mid-day trading, a decline of 29% from the average daily volume of 12,150,462 shares. The stock had previously closed at $182.46.

Key Chevron News

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Oil prices rose after Iran suspended indirect talks with the U.S. and warned that shipping through the Strait of Hormuz could be threatened if regional fighting worsens. That is bullish for Chevron because tighter oil supply and higher crude prices can lift the company’s upstream revenue and cash flow. Article Title
• Positive Sentiment: Chevron and other oil majors are benefiting from investor expectations that Middle East tensions could keep crude elevated for longer, with analysts and industry executives warning that shrinking inventories and supply disruptions could push prices higher. Article Title
• Neutral Sentiment: Recent coverage also highlighted Chevron’s production growth and portfolio expansion in Guyana and Greece, reinforcing the company’s longer-term operating strength, though these developments are less likely to drive the stock’s near-term move than the oil-price rally. Article Title
• Neutral Sentiment: Chevron’s latest earnings showed lower year-over-year profit, but production increased, suggesting underlying business momentum even as timing issues with hedges pressured results. Article Title

Wall Street Analyst Weigh In

CVX has been the subject of several recent research reports. Morgan Stanley upped their price objective on Chevron from $212.00 to $214.00 and gave the company an "overweight" rating in a research note on Friday, May 22nd. BMO Capital Markets reaffirmed an "outperform" rating and issued a $190.00 price objective on shares of Chevron in a research note on Monday, February 2nd. Zacks Research raised Chevron from a "hold" rating to a "strong-buy" rating in a research note on Friday, April 3rd. Melius Research raised Chevron from a "hold" rating to a "buy" rating and set a $205.00 price objective for the company in a research note on Tuesday, February 17th. Finally, Citigroup upped their price objective on Chevron from $210.00 to $235.00 and gave the company a "buy" rating in a research note on Thursday, April 2nd. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $205.70.

Chevron Price Performance

The firm has a market cap of $369.60 billion, a price-to-earnings ratio of 32.16, a P/E/G ratio of 0.60 and a beta of 0.48. The business's 50-day simple moving average is $192.27 and its two-hundred day simple moving average is $175.83. 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 released its 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. The business had revenue of $47.56 billion during the quarter, compared to the consensus estimate 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 quarter in the prior year, the firm posted $2.18 EPS. As a group, research analysts expect that Chevron Corporation will post 15.74 EPS for the current fiscal year.

Chevron Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 10th. Shareholders of record on Tuesday, May 19th will be issued a dividend of $1.78 per share. This represents a $7.12 dividend on an annualized basis and a dividend yield of 3.8%. The ex-dividend date is Tuesday, May 19th. Chevron's dividend payout ratio is presently 123.40%.

Insider Buying and Selling

In other Chevron news, Director John B. Hess sold 380,000 shares of the stock in a transaction that occurred on Wednesday, May 20th. The stock was 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 position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider R. Hewitt Pate sold 47,200 shares of the stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $192.12, for a total value of $9,068,064.00. Following the transaction, the insider owned 8,558 shares in the company, valued at $1,644,162.96. The trade was a 84.65% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 662,400 shares of company stock worth $127,090,824 over the last 90 days. Company insiders own 0.56% of the company's stock.

Hedge Funds Weigh In On Chevron

A number of large investors have recently modified their holdings of the company. Dakota Wealth Management grew its position in Chevron by 14.9% in the fourth quarter. Dakota Wealth Management now owns 83,265 shares of the oil and gas company's stock worth $12,690,000 after acquiring an additional 10,822 shares during the period. Brooklyn FI LLC purchased a new position in Chevron in the third quarter worth approximately $431,000. Clear Trail Advisors LLC purchased a new position in Chevron in the fourth quarter worth approximately $10,167,000. Finemark National Bank & Trust grew its position 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 worth $8,779,000 after acquiring an additional 16,243 shares during the period. Finally, Curtis Advisory Group LLC purchased a new position in Chevron in the fourth quarter worth approximately $1,381,000. 72.42% of the stock is currently owned by institutional investors.

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.