Beacon Financial Advisory LLC Trims Position in Chevron Corporation $CVX

Key Points

• Beacon Financial Advisory cut its Chevron position by 70.6% in the second quarter, leaving it with 2,663 shares valued at approximately $441,000. Institutional investors collectively own 72.42% of Chevron.
• Chevron plans to invest more than $7 billion in Venezuela over five years, targeting production growth from about 280,000 to 600,000 barrels per day. The expansion offers potential low-cost growth but carries significant political, sanctions and execution risks.
• Chevron reported quarterly EPS of $6.06, exceeding estimates, while revenue rose 57.4% year over year to $67.20 billion. The company declared a $1.78 quarterly dividend, and analysts maintain a “Moderate Buy” consensus rating with a $207.48 average price target.

Beacon Financial Advisory LLC lessened its holdings in shares of Chevron Corporation (NYSE:CVX - Free Report) by 70.6% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 2,663 shares of the oil and gas company's stock after selling 6,409 shares during the quarter. Beacon Financial Advisory LLC's holdings in Chevron were worth $441,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also added to or reduced their stakes in CVX. BlackRock Inc. purchased a new stake in shares of Chevron in the 2nd quarter worth about $25,663,729,000. State Street Corp increased its position in shares of Chevron by 9.1% during the third quarter. State Street Corp now owns 152,605,988 shares of the oil and gas company's stock valued at $23,698,184,000 after buying an additional 12,789,399 shares during the period. Berkshire Hathaway Inc increased its position in shares of Chevron by 6.6% during the fourth quarter. Berkshire Hathaway Inc now owns 130,156,362 shares of the oil and gas company's stock valued at $19,837,131,000 after buying an additional 8,091,570 shares during the period. Geode Capital Management LLC raised its stake in Chevron by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 43,613,011 shares of the oil and gas company's stock worth $6,620,187,000 after buying an additional 134,890 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. raised its stake in Chevron by 2.7% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 36,036,844 shares of the oil and gas company's stock worth $5,492,377,000 after buying an additional 961,341 shares in the last quarter. 72.42% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, Director John B. Hess sold 100,000 shares of the firm's stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $194.26, for a total transaction of $19,426,000.00. Following the completion of the sale, the director owned 178,045 shares of the company's stock, valued at $34,587,021.70. This trade represents a 35.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Andrew Benjamin Walz sold 16,800 shares of the stock in a transaction on Monday, August 17th. The shares were sold at an average price of $201.06, for a total value of $3,377,808.00. Following the sale, the insider owned 14 shares in the company, valued at approximately $2,814.84. This represents a 99.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,152,582 shares of company stock worth $225,853,661 over the last three months. 0.56% of the stock is currently owned by insiders.

Key Chevron News

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Venezuela expansion: Chevron plans to invest more than $7 billion over the next five years under updated joint-venture terms with Venezuela. The company has received additional acreage in the Orinoco Belt and aims to more than double production from approximately 280,000 barrels per day to about 600,000 barrels per day. Chevron expands Venezuela position, to invest $7 billion in next five years
• Positive Sentiment: Potentially attractive economics: Reports indicate targeted production could carry operating costs below $20 per barrel, offering Chevron a potentially high-margin source of incremental volumes if Venezuela’s infrastructure and legal framework support the plan. The agreements reportedly include improved fiscal, commercial and legal protections. Chevron's $7 Billion Venezuela Bet Targets 600,000 Barrels Daily
• Positive Sentiment: Strategic positioning: As the only major U.S. oil company with a substantial existing Venezuelan presence, Chevron is positioned to benefit from Washington’s effort to reopen and develop the country’s oil reserves. Additional supply could strengthen Chevron’s production growth and refining flexibility. Chevron confirms it will invest billions to expand operations in oil-rich Venezuela
• Neutral Sentiment: Oil-market support: Crude prices have risen above $90 per barrel amid concerns involving Iran, the Strait of Hormuz and threats to regional energy infrastructure. Higher prices generally support Chevron’s upstream earnings, although they may also increase geopolitical and supply volatility. Why oil just crossed $90 per barrel
• Negative Sentiment: Execution and political risks: Doubling Venezuelan output will require major infrastructure investment, reliable exports and sustained political stability. Investors also face uncertainty around sanctions, government control, funding and whether Venezuela can deliver the promised production growth on schedule. Can Venezuela double output?

Chevron Trading Up 0.3%

NYSE CVX opened at $211.76 on Thursday. Chevron Corporation has a 12 month low of $146.49 and a 12 month high of $214.71. The stock has a market cap of $418.39 billion, a P/E ratio of 20.30, a P/E/G ratio of 0.63 and a beta of 0.50. The stock's fifty day moving average price is $189.56 and its 200-day moving average price is $189.45. The company has a current ratio of 1.25, a quick ratio of 0.98 and a debt-to-equity ratio of 0.19.

Chevron (NYSE:CVX - Get Free Report) last posted its quarterly earnings results on Friday, July 31st. The oil and gas company reported $6.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.55 by $0.51. Chevron had a return on equity of 11.09% and a net margin of 9.57%.The firm had revenue of $67.20 billion during the quarter, compared to analyst estimates of $62.72 billion. During the same quarter in the previous year, the firm earned $1.77 EPS. Chevron's quarterly revenue was up 57.4% compared to the same quarter last year. As a group, equities analysts forecast that Chevron Corporation will post 16.24 EPS for the current fiscal year.

Chevron Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Wednesday, August 19th will be issued a dividend of $1.78 per share. The ex-dividend date is Wednesday, August 19th. This represents a $7.12 dividend on an annualized basis and a dividend yield of 3.4%. Chevron's dividend payout ratio is presently 68.26%.

Wall Street Analysts Forecast Growth

CVX has been the subject of several research analyst reports. Piper Sandler started coverage on shares of Chevron in a report on Thursday, July 23rd. They issued an "overweight" rating and a $207.00 price objective for the company. Dbs Bank upgraded Chevron to a "moderate buy" rating in a report on Thursday, August 6th. Wolfe Research raised Chevron from a "peer perform" rating to an "outperform" rating and set a $210.00 target price for the company in a research report on Thursday, July 2nd. The Goldman Sachs Group restated a "buy" rating and issued a $216.00 target price on shares of Chevron in a research note on Wednesday, May 6th. Finally, Mizuho set a $224.00 price target on Chevron in a research report on Monday, August 3rd. Twenty investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $207.48.

Chevron 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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