Chevron (NYSE:CVX) Trading Down 1.7% After Analyst Downgrade

Key Points

• Chevron shares fell 1.7% after Morgan Stanley trimmed its price target from $214 to $210, even while keeping an overweight rating. The stock traded below its previous close amid heavier-than-average volume.
• Analyst sentiment on CVX remains mixed but generally constructive: Chevron still carries an average Moderate Buy rating with a consensus price target of $205.52. Several firms recently raised targets or upgraded the stock, offsetting some recent caution.
• Chevron also disclosed a large insider sale by director John B. Hess, who sold 380,000 shares worth about $73.4 million. Separately, the company recently posted quarterly earnings that beat EPS expectations and maintains a 4.3% dividend yield.

Chevron Corporation (NYSE:CVX - Get Free Report)'s share price fell 1.7% during mid-day trading on Tuesday after Morgan Stanley lowered their price target on the stock from $214.00 to $210.00. Morgan Stanley currently has an overweight rating on the stock. Chevron traded as low as $165.20 and last traded at $165.69. 19,381,589 shares were traded during mid-day trading, an increase of 65% from the average daily volume of 11,727,348 shares. The stock had previously closed at $168.47.

A number of other equities research analysts have also recently commented on CVX. BNP Paribas Exane raised Chevron from a "neutral" rating to an "outperform" rating and set a $174.00 price objective for the company in a research note on Friday, April 17th. Weiss Ratings lowered Chevron from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, June 2nd. Bank of America raised their target price on Chevron from $188.00 to $206.00 and gave the stock a "buy" rating in a report on Monday, March 2nd. Citigroup upped their price target on Chevron from $210.00 to $235.00 and gave the company a "buy" rating in a research note on Thursday, April 2nd. Finally, Sanford C. Bernstein cut their price target on shares of Chevron from $216.00 to $204.00 and set a "market perform" rating on the stock in a research report on Monday, May 11th. Eighteen equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Chevron has an average rating of "Moderate Buy" and an average price target of $205.52.

Insider Transactions at Chevron

In other Chevron news, Director John B. Hess sold 380,000 shares of the business's stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $193.20, for a total value of $73,416,000.00. Following the completion of the transaction, the director directly owned 278,045 shares of the company's stock, valued at approximately $53,718,294. The trade was a 57.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.56% of the company's stock.

Key Stories Impacting Chevron

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron is being highlighted as an attractive dividend stock, with articles citing its yield, analyst buy ratings, and ongoing institutional accumulation as support for the shares. These 3 Dividend Stocks Could Boost Your Income This July (CVX)
• Positive Sentiment: Chevron’s expansion into data-center power and its Project Kilby-related efforts suggest a new growth avenue tied to AI-driven electricity demand. Chevron Expands Data Center Power Strategy Beyond Project Kilby
• Positive Sentiment: Several industry pieces argue that integrated energy names like Chevron could benefit from solid oil prices, stable business models, and strong midstream operations. 3 Integrated Energy Stocks to Gain From Promising Industry Trend
• Neutral Sentiment: Coverage on Chevron gaining fresh institutional interest and staying central to oil-and-gas watchlists is supportive, but it does not point to a specific catalyst on its own. Is Chevron NYSE: CVX Gaining Fresh Institutional Interest?
• Negative Sentiment: Chevron is being dragged by a weaker oil outlook after Morgan Stanley slashed its crude forecast, reinforcing concerns about lower commodity prices and a potential supply glut. BP, Shell, Chevron shares on edge as Morgan Stanley slashes oil forecast
• Negative Sentiment: Broader reports note that crude has slipped, and one analyst comparison suggests Occidental may offer more upside than Chevron, which can temper enthusiasm for CVX near term. Occidental Petroleum or Chevron: Which Oil Stock Offers More Upside?

Institutional Trading of Chevron

Large investors have recently bought and sold shares of the business. Midwest Capital Advisors LLC bought a new stake in Chevron in the 1st quarter valued at $25,000. Core Wealth Advisors LLC bought a new position in Chevron during the 4th quarter worth about $26,000. Phillip James Consulting Co. bought a new position in Chevron during the 4th quarter worth about $26,000. Basso Capital Management L.P. acquired a new stake in shares of Chevron in the 4th quarter valued at about $27,000. Finally, Karpus Management Inc. acquired a new stake in shares of Chevron in the 4th quarter valued at about $27,000. 72.42% of the stock is owned by institutional investors.

Chevron Price Performance

The stock has a market cap of $329.99 billion, a price-to-earnings ratio of 28.72, a P/E/G ratio of 0.56 and a beta of 0.48. The company has a 50 day simple moving average of $184.71 and a 200-day simple moving average of $180.14. 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 data on Friday, May 1st. The oil and gas company reported $1.41 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.41. The company 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 for the quarter was up 2.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.18 earnings per share. Research analysts expect that Chevron Corporation will post 15.88 EPS for the current year.

Chevron Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, June 10th. Shareholders of record on Tuesday, May 19th were given a dividend of $1.78 per share. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $7.12 dividend on an annualized basis and a yield of 4.3%. Chevron's dividend payout ratio is 123.40%.

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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