HB Wealth Management LLC Increases Holdings in Chevron Corporation $CVX

Key Points

• HB Wealth Management increased its Chevron stake by 2.9% in the second quarter, bringing its holdings to 192,692 shares valued at approximately $31.9 million. Institutional investors collectively own 72.42% of Chevron.
• Analysts maintain a positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $211.35. Chevron also exceeded quarterly earnings and revenue expectations, reporting $6.06 in EPS and $67.20 billion in revenue.
• Chevron declared a quarterly dividend of $1.78, equivalent to a 3.4% annualized yield, but investors face risks from elevated valuation, potential oil-price declines, and significant insider selling, including large sales by the CEO and a director.

HB Wealth Management LLC grew its position in shares of Chevron Corporation (NYSE:CVX - Free Report) by 2.9% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 192,692 shares of the oil and gas company's stock after buying an additional 5,352 shares during the quarter. HB Wealth Management LLC's holdings in Chevron were worth $31,941,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Midwest Capital Advisors LLC bought a new stake in shares of Chevron during the 1st quarter valued at about $25,000. Main Street Group LTD purchased a new stake in shares of Chevron during the 1st quarter valued at about $28,000. Phillip James Consulting Co. bought a new position in shares of Chevron in the 4th quarter worth approximately $26,000. Kilter Group LLC bought a new position in shares of Chevron in the 2nd quarter worth approximately $28,000. Finally, Core Wealth Advisors LLC purchased a new position in shares of Chevron in the fourth quarter worth approximately $26,000. 72.42% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. Wall Street Zen upgraded shares of Chevron from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Piper Sandler increased their price target on shares of Chevron from $207.00 to $243.00 and gave the stock an "overweight" rating in a research report on Thursday. Weiss Ratings upgraded shares of Chevron from a "hold (c)" rating to a "buy (b)" rating in a research note on Tuesday, August 11th. Dbs Bank raised shares of Chevron to a "moderate buy" rating in a research report on Thursday, August 6th. Finally, Sanford C. Bernstein boosted their price objective on shares of Chevron from $204.00 to $209.00 and gave the company a "market perform" rating in a research report on Monday, August 3rd. Twenty equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $211.35.

Chevron Stock Down 1.3%

CVX stock opened at $208.48 on Friday. The business's 50-day moving average price is $191.10 and its 200-day moving average price is $189.77. The stock has a market cap of $411.91 billion, a P/E ratio of 19.99, a PEG ratio of 0.62 and a beta of 0.50. The company has a quick ratio of 0.98, a current ratio of 1.25 and a debt-to-equity ratio of 0.19. Chevron Corporation has a twelve month low of $146.49 and a twelve month high of $214.71.

Chevron (NYSE:CVX - Get Free Report) last released its 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 net margin of 9.57% and a return on equity of 11.09%. The company had revenue of $67.20 billion during the quarter, compared to analyst estimates of $62.72 billion. During the same period in the prior year, the firm posted $1.77 EPS. The firm's quarterly revenue was up 57.4% compared to the same quarter last year. On average, equities research analysts forecast that Chevron Corporation will post 16.51 EPS for the current year.

Chevron Dividend Announcement

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

Key Headlines Impacting Chevron

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron’s planned investment of more than $7 billion in Venezuela is expected to expand production to approximately 600,000 barrels per day over five years. Investors view the Orinoco Belt opportunity as a potential source of significant production growth and attractive economics. Chevron Commits $7 Billion to Venezuela to Double Production
• Positive Sentiment: Analysts and fund managers remain constructive on Chevron, citing its scale, strong fundamentals, production growth following the Hess acquisition, dividend record and long-term exposure to energy demand. Rising crude prices above $90 per barrel have also supported sentiment toward major oil companies. Why Gabelli Remains Bullish on Chevron
• Positive Sentiment: A preliminary agreement covering Ghana’s South Deepwater Tano Cape Three Points block could provide Chevron with another international growth option, although commercial terms and ownership details have not been finalized. Chevron and Shell Sign Preliminary Ghana Agreement
• Neutral Sentiment: Chevron’s dividend remains a key attraction, with 39 consecutive years of increases. However, its sustainability would be tested if oil prices fall materially from current elevated levels. Chevron’s Dividend and Oil Price Risk
• Negative Sentiment: Investors remain concerned that the Venezuela strategy will require substantial capital, face operational challenges and carry elevated political and execution risk. Critics also question whether the expansion can deliver its projected returns. Capital Requirements and Operational Challenges
• Negative Sentiment: Valuation concerns have become more important after the rally: Chevron is trading near the upper end of its recent range, while reported insider activity has consisted of sales rather than purchases. A decline in oil prices could further pressure earnings and the stock.

Insider Activity

In other news, CEO Michael Wirth sold 317,100 shares of the stock in a transaction on Friday, August 14th. The shares were sold at an average price of $200.46, for a total value of $63,565,866.00. Following the completion of the sale, the chief executive officer directly owned 26,308 shares of the company's stock, valued at $5,273,701.68. This represents a 92.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director John Hess sold 100,000 shares of the firm's stock in a transaction 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 sale, the director owned 178,045 shares in the company, valued at $34,587,021.70. The trade was a 35.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 1,152,582 shares of company stock valued at $225,853,661. 0.56% of the stock is currently owned by company insiders.

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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