Chevron (NYSE:CVX) Trading Down 1.8% - Should You Sell?

Key Points

• Chevron shares fell 1.8% to about $193 after crude prices declined on reports of possible U.S.-Iran negotiations, while political pressure over elevated gasoline prices added further risk.
• Chevron delivered a strong quarter, with adjusted EPS of $6.06 beating the $5.55 estimate and revenue rising 57.4% year over year. Analysts remain broadly positive, assigning a “Moderate Buy” consensus rating and an average target price of $207.26.
• Despite operational momentum, cost reductions and a 3.7% dividend yield, sentiment faces headwinds from Berkshire Hathaway cutting its Chevron stake by 35%, political and regulatory concerns, and a reported director share sale.

Chevron Corporation (NYSE:CVX - Get Free Report) shares were down 1.8% on Monday . The company traded as low as $191.81 and last traded at $193.1920. Approximately 9,532,204 shares changed hands during mid-day trading, a decline of 14% from the average daily volume of 11,113,914 shares. The stock had previously closed at $196.83.

Key Stories Impacting Chevron

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Strong Q2 earnings and higher price targets: Chevron reported adjusted earnings of $6.06 per share, exceeding the $5.55 consensus, while revenue and other income reached approximately $70.06 billion. Barclays raised its price target to $216 from $213, and Bernstein increased its target to $209 from $204. Analyst price target article
• Positive Sentiment: Operational momentum and capital discipline: Management highlighted early cost reductions, lower capital spending, global upstream opportunities and potential power projects, including a long-term artificial-intelligence power agreement with Microsoft. Chevron also plans a special employee bonus tied to strong operational performance. Chevron Q2 earnings call article
• Positive Sentiment: Base-oils expansion: Chevron is broadening its North American distribution network through partnerships with HF Sinclair Lubricants & Specialties and Renkert Oil, improving customer access to its premium base oils and process oils. Chevron base oils distribution article
• Neutral Sentiment: Higher fuel prices support near-term cash flow but increase political risk: Chevron warned that limited global refining capacity and geopolitical disruptions could keep fuel prices elevated, supporting profitability while intensifying scrutiny from consumers and policymakers.
• Negative Sentiment: Crude prices declined on Iran negotiations: Reports that U.S.-Iran talks could reduce the risk of prolonged supply disruptions triggered a crude-oil selloff, weighing on Chevron and the broader energy sector. Oil selloff article
• Negative Sentiment: Political pressure is escalating: President Trump criticized Chevron and other oil companies for profiting from high prices and demanded lower gasoline costs. Reports also raised the possibility of a Justice Department probe or export restrictions, creating potential regulatory and earnings risks. Reuters article on Trump and Chevron
• Negative Sentiment: Berkshire Hathaway reduced its stake: Berkshire reportedly cut its Chevron holding by 35%, a notable negative signal for sentiment despite Chevron’s earnings strength. Berkshire Chevron stake article

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on CVX. Weiss Ratings lowered Chevron from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, June 2nd. Barclays boosted their target price on Chevron from $213.00 to $216.00 and gave the company an "equal weight" rating in a report on Monday. The Goldman Sachs Group reissued a "buy" rating and issued a $216.00 target price on shares of Chevron in a research report on Wednesday, May 6th. Royal Bank Of Canada restated an "outperform" rating and set a $220.00 price target on shares of Chevron in a research note on Tuesday, May 5th. Finally, UBS Group reaffirmed a "buy" rating on shares of Chevron in a research report on Tuesday, June 23rd. Eighteen research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $207.26.

Chevron Price Performance

The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.84 and a current ratio of 1.09. The company has a market capitalization of $384.76 billion, a PE ratio of 18.52, a P/E/G ratio of 0.61 and a beta of 0.50. The company's 50-day simple moving average is $181.95 and its 200-day simple moving average is $185.12.

Chevron (NYSE:CVX - Get Free Report) last posted its quarterly earnings data on Friday, July 31st. The oil and gas company reported $6.06 EPS for the quarter, beating analysts' consensus estimates of $5.55 by $0.51. Chevron had a net margin of 9.57% and a return on equity of 11.14%. The company had revenue of $67.20 billion for the quarter, compared to analyst estimates of $62.72 billion. During the same period in the previous year, the business posted $1.77 earnings per share. Chevron's quarterly revenue was up 57.4% on a year-over-year basis. As a group, sell-side analysts anticipate that Chevron Corporation will post 15.64 earnings per share for the current year.

Chevron Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Wednesday, August 19th will be issued a dividend of $1.78 per share. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $7.12 dividend on an annualized basis and a dividend yield of 3.7%. Chevron's dividend payout ratio (DPR) is currently 68.26%.

Insider Transactions at Chevron

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. United Bank increased its stake in shares of Chevron by 7.7% during the second quarter. United Bank now owns 11,079 shares of the oil and gas company's stock worth $1,586,000 after acquiring an additional 796 shares during the period. Schnieders Capital Management LLC. grew its position in Chevron by 9.0% during the second quarter. Schnieders Capital Management LLC. now owns 50,839 shares of the oil and gas company's stock worth $7,280,000 after buying an additional 4,214 shares during the period. BNP Paribas boosted its position in Chevron by 76.4% during the second quarter. BNP Paribas now owns 441 shares of the oil and gas company's stock worth $63,000 after acquiring an additional 191 shares during the last quarter. Osterweis Capital Management Inc. grew its stake in Chevron by 678.9% in the 2nd quarter. Osterweis Capital Management Inc. now owns 1,363 shares of the oil and gas company's stock worth $195,000 after acquiring an additional 1,188 shares during the period. Finally, Main Street Financial Solutions LLC lifted its position in Chevron by 3.6% during the second quarter. Main Street Financial Solutions LLC now owns 16,052 shares of the oil and gas company's stock worth $2,299,000 after buying an additional 553 shares during the period. 72.42% of the stock is currently owned by hedge funds and other institutional investors.

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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