Chevron (NYSE:CVX) Trading Up 1.9% - Time to Buy?

Key Points

• Chevron shares rose 1.9% in midday trading, reaching as high as $188.15, though volume was below average at about 7.0 million shares.
• Recent headlines are largely supportive, including expected accords with Iraq over major oil fields and a potential pipeline route to bypass the Strait of Hormuz, which could improve Chevron’s growth outlook and reduce shipping risk.
• Wall Street sentiment remains constructive, with 19 Buy ratings and an average price target of $206.83; the company also beat EPS expectations last quarter and offers a 3.8% dividend yield.

Chevron Corporation (NYSE:CVX - Get Free Report)'s share price traded up 1.9% during mid-day trading on Friday . The company traded as high as $188.15 and last traded at $187.3910. Approximately 7,045,186 shares traded hands during mid-day trading, a decline of 38% from the average session volume of 11,391,896 shares. The stock had previously closed at $183.86.

Chevron News Roundup

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron is expected to sign accords with Iraq that could advance investment in major oil fields such as West Qurna 2 and Nassiriya, potentially expanding its upstream footprint and future output. Chevron to sign MOUs with Iraq for West Qurna 2 and Nassiriya oilfields
• Positive Sentiment: The company is also exploring a pipeline to bypass the Strait of Hormuz, a move that could reduce geopolitical shipping risk and improve export reliability for Iraqi crude. Chevron Will Explore a Pipeline to Bypass the Strait of Hormuz. Here's What it Means for the Energy Stock.
• Positive Sentiment: Analyst-style comparisons continue to favor Chevron over TotalEnergies on balance-sheet strength, asset quality, and steadier earnings visibility, which can support investor confidence in CVX. CVX vs. TTE: Which Energy Giant Deserves a Place in Your Portfolio?
• Neutral Sentiment: A recent market note said Chevron looks fairly valued after a strong five-year gain, suggesting upside may be more limited unless oil prices or project developments improve the outlook. Chevron (CVX) Stock Looks Fairly Valued Following Its 123% Five Year Run
• Neutral Sentiment: Chevron has also been highlighted as a top dividend stock, and while that supports the investment case, it is not a near-term catalyst by itself. Chevron Corporation (CVX) A Top Dividend Stock to Invest in According to Jim Simons’ Renaissance Technologies

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on CVX. Scotiabank lifted their target price on shares of Chevron from $168.00 to $187.00 and gave the company a "sector perform" rating in a report on Wednesday, April 22nd. HSBC upgraded Chevron from a "hold" rating to a "buy" rating and set a $215.00 price target on the stock in a research note on Friday, March 20th. Wolfe Research raised Chevron from a "peer perform" rating to an "outperform" rating and set a $210.00 price objective for the company in a research note on Thursday, July 2nd. Tudor Pickering raised Chevron from a "hold" rating to a "buy" rating and set a $225.00 price objective for the company in a research note on Thursday, April 9th. Finally, Jefferies Financial Group reiterated a "buy" rating and issued a $216.00 price objective on shares of Chevron in a report on Friday, July 10th. Nineteen analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Chevron presently has an average rating of "Moderate Buy" and an average price target of $206.83.

Chevron Stock Performance

The stock has a market capitalization of $373.21 billion, a PE ratio of 32.48, a P/E/G ratio of 0.64 and a beta of 0.50. 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 firm's 50 day moving average is $181.42 and its two-hundred day moving average is $182.41.

Chevron (NYSE:CVX - Get Free Report) last issued its quarterly earnings results on Friday, May 1st. The oil and gas company reported $1.41 EPS 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 analysts' expectations of $51.86 billion. Chevron had a net margin of 5.79% and a return on equity of 6.90%. The firm's revenue was up 2.1% compared to the same quarter last year. During the same quarter last year, the company posted $2.18 EPS. As a group, research analysts predict that Chevron Corporation will post 14.75 earnings per share for the current year.

Chevron Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Tuesday, May 19th were issued a $1.78 dividend. The ex-dividend date was Tuesday, May 19th. This represents a $7.12 dividend on an annualized basis and a yield of 3.8%. Chevron's dividend payout ratio (DPR) is 123.40%.

Insider Buying and Selling

In related news, Director John B. Hess sold 380,000 shares of the business's 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 completion of the transaction, the director directly owned 278,045 shares of the company's stock, valued at $53,718,294. The trade was a 57.75% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.56% of the stock is owned by insiders.

Institutional Investors Weigh In On Chevron

Hedge funds have recently bought and sold shares of the stock. First Community Trust NA lifted its position in shares of Chevron by 1.6% during the 2nd quarter. First Community Trust NA now owns 8,066 shares of the oil and gas company's stock worth $1,337,000 after purchasing an additional 129 shares during the last quarter. Regent Peak Wealth Advisors LLC grew its stake in shares of Chevron by 7.7% during the second quarter. Regent Peak Wealth Advisors LLC now owns 4,883 shares of the oil and gas company's stock worth $809,000 after purchasing an additional 350 shares in the last quarter. Buska Wealth Management LLC increased its holdings in Chevron by 8.6% in the second quarter. Buska Wealth Management LLC now owns 1,231 shares of the oil and gas company's stock valued at $204,000 after buying an additional 97 shares during the last quarter. Accel Wealth Management raised its stake in Chevron by 3.0% in the second quarter. Accel Wealth Management now owns 6,545 shares of the oil and gas company's stock valued at $1,085,000 after buying an additional 188 shares in the last quarter. Finally, Hudson Value Partners LLC raised its stake in Chevron by 105.6% in the second quarter. Hudson Value Partners LLC now owns 6,940 shares of the oil and gas company's stock valued at $1,150,000 after buying an additional 3,565 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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