Chevron (NYSE:CVX) Trading Down 1.2% - Here's Why

Key Points

• Chevron shares fell 1.2% to $187.70 as crude prices declined on potential U.S.-Iran negotiations, pressuring the broader energy sector and raising concerns about upstream revenue and cash flow.
• The company recently raised its quarterly dividend to $1.78, or $7.12 annualized, producing a 3.8% yield and extending its long record of dividend growth. Chevron is also exploring expanded operations in Iraq and developing offshore gas projects in Malaysia.
• Analysts remain broadly positive, with 19 Buy ratings, six Holds and one Sell; the consensus rating is “Moderate Buy” with an average price target of $206.04, implying upside from the trading price.

Chevron Corporation (NYSE:CVX - Get Free Report) shares dropped 1.2% during trading on Tuesday . The company traded as low as $186.73 and last traded at $187.70. 7,376,234 shares traded hands during mid-day trading, a decline of 34% from the average daily volume of 11,169,949 shares. The stock had previously closed at $190.00.

Key Headlines Impacting Chevron

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron raised its quarterly dividend, extending its long-running record of dividend growth and reinforcing its appeal to income-focused investors. Chevron lifts quarterly dividend
• Positive Sentiment: The company is evaluating a broader upstream presence in Iraq, including major oil fields and export projects. Potential expansion in a large producing region could support longer-term production growth, although it also brings political and execution risks. Chevron returns to Iraq
• Neutral Sentiment: Chevron CEO Mike Wirth met with U.S. officials regarding protection of the company’s Kazakhstan oil assets. The discussions highlight the strategic importance of its operations but also underscore exposure to regional geopolitical and regulatory risks. Chevron meets U.S. officials
• Neutral Sentiment: Chevron’s subsidiary awarded a roughly $51 million, multiyear drilling contract in Malaysia’s North Malay Basin, supporting its offshore gas development plans. The project adds to future production potential but is unlikely to materially affect near-term earnings. Chevron Malaysia drilling contract
• Negative Sentiment: Brent and West Texas Intermediate crude prices fell sharply after President Trump indicated possible negotiations with Iran, reducing concerns about supply disruptions. Lower oil prices can pressure Chevron’s upstream revenue, cash flow and valuation. Oil prices slide on Iran negotiations
• Negative Sentiment: The broader energy sector also declined as oil prices weakened, creating a market-wide headwind for major producers including CVX. Investors are now focused on whether Chevron’s upcoming results and outlook can offset the commodity-price pressure. Energy stocks decline

Analyst Ratings Changes

A number of research firms have issued reports on CVX. Piper Sandler started coverage on Chevron in a report on Thursday, July 23rd. They issued an "overweight" rating and a $207.00 price objective for the company. Morgan Stanley dropped their target price on shares of Chevron from $214.00 to $210.00 and set an "overweight" rating on the stock in a report on Monday, June 29th. Mizuho upped their target price on shares of Chevron from $225.00 to $230.00 and gave the stock an "outperform" rating in a research report on Wednesday, May 27th. Sanford C. Bernstein decreased their price target on shares of Chevron from $216.00 to $204.00 and set a "market perform" rating for the company in a research note on Monday, May 11th. Finally, Tudor Pickering raised shares of Chevron from a "hold" rating to a "buy" rating and set a $225.00 price target for the company in a research report on Thursday, April 9th. Nineteen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $206.04.

Chevron Trading Down 1.2%

The stock's fifty day moving average price is $181.99 and its 200 day moving average price is $184.20. 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 has a market cap of $373.82 billion, a PE ratio of 32.53, a PEG ratio of 0.65 and a beta of 0.50.

Chevron (NYSE:CVX - Get Free Report) last announced its quarterly earnings results on Friday, May 1st. The oil and gas company reported $1.41 earnings per share for the quarter, beating the consensus estimate of $1.00 by $0.41. The company 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 firm's quarterly revenue was up 2.1% compared to the same quarter last year. During the same quarter last year, the firm earned $2.18 earnings per share. On average, sell-side analysts forecast that Chevron Corporation will post 15.6 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 issued a $1.78 dividend. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $7.12 dividend on an annualized basis and a dividend yield of 3.8%. Chevron's dividend payout ratio (DPR) is presently 123.40%.

Insider Activity

In related news, Director John B. Hess sold 380,000 shares of the stock in a transaction 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 sale, the director directly owned 278,045 shares of the company's stock, valued at $53,718,294. This trade represents a 57.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.56% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Chevron

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Midwest Capital Advisors LLC purchased a new stake in Chevron in the first quarter worth approximately $25,000. Core Wealth Advisors LLC purchased a new stake in Chevron during the 4th quarter valued at $26,000. Phillip James Consulting Co. bought a new position in shares of Chevron during the 4th quarter valued at $26,000. Basso Capital Management L.P. bought a new position in shares of Chevron during the 4th quarter valued at $27,000. Finally, Karpus Management Inc. purchased a new position in shares of Chevron in the 4th quarter worth $27,000. Institutional investors 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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