Chevron (NYSE:CVX) Trading Up 2.3% - Here's Why

Key Points

• Chevron shares rose 2.3% to $191.91 as surging oil prices, higher Venezuelan production and renewed concerns about supply disruptions improved the company’s upstream outlook.
• Analysts remain broadly positive, with 19 Buy ratings and an average price target of $206.04; Bank of America maintained a Buy rating on Chevron while downgrading Exxon Mobil to Neutral.
• Investors are focused on Chevron’s July 31 second-quarter earnings report, which should clarify the impact of commodity prices, production growth and capital spending. Geopolitical exposure in Iraq, Kazakhstan and Venezuela remains both a potential growth driver and a source of risk.

Chevron Corporation (NYSE:CVX - Get Free Report) was up 2.3% on Wednesday . The company traded as high as $193.56 and last traded at $191.91. 8,090,205 shares traded hands during trading, a decline of 27% from the average session volume of 11,149,689 shares. The stock had previously closed at $187.58.

Key Stories Impacting Chevron

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Oil prices surged after an Iranian attack on U.S. forces and subsequent U.S.-Saudi strikes on Iran-backed groups, reviving concerns about supply disruptions and delaying hopes for the Strait of Hormuz to reopen. Higher crude prices generally support Chevron’s upstream earnings and cash flow. Oil Prices Spike After Iran Launches Surprise Attack on U.S. Forces
• Positive Sentiment: Chevron was cited as outperforming much of the Dow as climbing oil prices and rising production levels in Venezuela strengthened its operating outlook. The company’s Venezuelan exposure could provide additional production upside if operations continue to expand. Dow Leader Rides Surging Oil Prices And Trump's Venezuela Spoils
• Positive Sentiment: Bank of America downgraded Exxon Mobil to Neutral while maintaining a Buy rating on Chevron, giving CVX a relative-rating advantage within the major integrated oil sector. Exxon Cut to Neutral at BofA, Which Favors Buy-Rated Chevron
• Positive Sentiment: Chevron is evaluating opportunities in Iraq’s major oil fields and export projects, potentially broadening its upstream footprint in a strategically important producing region. Chevron Returns to Iraq
• Neutral Sentiment: Investors are positioning for Chevron’s second-quarter results, scheduled for July 31. Earnings could provide a clearer read on the effects of commodity prices, production growth and capital spending, but expectations may increase volatility ahead of the release. Pre-Q2 Earnings: Is Chevron Stock a Buy, Hold, or Sell?
• Neutral Sentiment: Chevron’s discussions with U.S. officials about protecting its Kazakhstan assets highlight the strategic importance of its overseas operations, while also underscoring geopolitical and regulatory risks. Chevron Meets US Officials Over Protecting Kazakhstan Oil Assets
• Negative Sentiment: Chevron recently faced pressure when expectations of U.S.-Iran negotiations caused crude prices to fall sharply, demonstrating the stock’s sensitivity to rapidly changing geopolitical developments and oil-price forecasts. Oil Prices Slide as Trump Touts Possible Negotiations With Iran

Analysts Set New Price Targets

A number of analysts have issued reports on CVX shares. Jefferies Financial Group reaffirmed a "buy" rating and issued a $216.00 target price on shares of Chevron in a research note on Friday, July 10th. The Goldman Sachs Group reissued a "buy" rating and set a $216.00 price target on shares of Chevron in a research report on Wednesday, May 6th. Morgan Stanley dropped their price objective on shares of Chevron from $214.00 to $210.00 and set an "overweight" rating for the company in a report on Monday, June 29th. Tudor Pickering upgraded shares of Chevron from a "hold" rating to a "buy" rating and set a $225.00 price objective for the company in a research report on Thursday, April 9th. Finally, Scotiabank lifted their target price on shares of Chevron from $168.00 to $187.00 and gave the stock a "sector perform" rating in a research note on Wednesday, April 22nd. Nineteen 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. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $206.04.

Chevron Stock Up 2.3%

The firm has a 50-day moving average of $181.80 and a two-hundred day moving average of $184.43. 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 company has a market capitalization of $382.21 billion, a PE ratio of 33.26, a price-to-earnings-growth ratio of 0.63 and a beta of 0.50.

Chevron (NYSE:CVX - Get Free Report) last posted its earnings results on Friday, May 1st. The oil and gas company reported $1.41 EPS for the quarter, beating analysts' consensus estimates of $1.00 by $0.41. Chevron had a return on equity of 6.90% and a net margin of 5.79%.The company had revenue of $47.56 billion for the quarter, compared to the consensus estimate of $51.86 billion. During the same quarter in the previous year, the business earned $2.18 earnings per share. The company's revenue for the quarter was up 2.1% on a year-over-year basis. Equities research analysts predict that Chevron Corporation will post 15.6 earnings per share for the current fiscal year.

Insider Activity

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

Institutional Inflows and Outflows

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