HighTower Advisors LLC Sells 309,236 Shares of Chevron Corporation $CVX

Key Points

• HighTower Advisors reduced its Chevron stake by 9.6%, selling 309,236 shares and retaining 2.91 million shares valued at approximately $482.8 million. Institutional investors own 72.42% of Chevron.
• Chevron reported strong quarterly results, with EPS of $6.06 beating estimates and revenue rising 57.4% year over year to $67.2 billion. The company also declared a $1.78 quarterly dividend, representing a 3.4% annualized yield.
• Investor sentiment is supported by Chevron’s Venezuela and Ghana growth opportunities and favorable analyst views, but insider selling, elevated valuation, capital requirements and geopolitical risks remain concerns if oil prices decline.

HighTower Advisors LLC decreased its holdings in shares of Chevron Corporation (NYSE:CVX - Free Report) by 9.6% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,912,517 shares of the oil and gas company's stock after selling 309,236 shares during the quarter. HighTower Advisors LLC owned approximately 0.15% of Chevron worth $482,779,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in CVX. United Bank boosted its holdings 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. increased its stake in shares of 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 purchasing an additional 4,214 shares during the period. BNP Paribas increased its stake in shares of 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 purchasing an additional 191 shares during the period. Osterweis Capital Management Inc. lifted its holdings in Chevron by 678.9% during the 2nd quarter. Osterweis Capital Management Inc. now owns 1,363 shares of the oil and gas company's stock worth $195,000 after purchasing an additional 1,188 shares during the last quarter. Finally, Main Street Financial Solutions LLC lifted its holdings in Chevron by 3.6% during the 2nd quarter. Main Street Financial Solutions LLC now owns 16,052 shares of the oil and gas company's stock worth $2,299,000 after purchasing an additional 553 shares during the last quarter. 72.42% of the stock is owned by institutional investors.

Insider Activity

In other Chevron news, insider R. Pate sold 2,470 shares of the firm's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $205.11, for a total value of $506,621.70. Following the transaction, the insider directly owned 10,794 shares of the company's stock, valued at $2,213,957.34. This trade represents a 18.62% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Michael Wirth sold 317,100 shares of the company's stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $200.46, for a total transaction of $63,565,866.00. Following the sale, the chief executive officer directly owned 26,308 shares of the company's stock, valued at approximately $5,273,701.68. This trade represents a 92.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 1,152,582 shares of company stock worth $225,853,661. 0.56% of the stock is owned by company insiders.

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.

Chevron Price Performance

Chevron stock opened at $208.48 on Monday. The firm has a market cap of $411.91 billion, a PE ratio of 19.99, a price-to-earnings-growth ratio of 0.61 and a beta of 0.50. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.25 and a quick ratio of 0.98. The stock's fifty day moving average price is $191.10 and its two-hundred day moving average price is $189.82. Chevron Corporation has a one year low of $146.49 and a one year 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 for the quarter, beating analysts' consensus estimates of $5.55 by $0.51. The firm had revenue of $67.20 billion during the quarter, compared to the consensus estimate of $62.72 billion. Chevron had a return on equity of 11.09% and a net margin of 9.57%.The company's revenue was up 57.4% compared to the same quarter last year. During the same period in the prior year, the company posted $1.77 EPS. As a group, research analysts expect that Chevron Corporation will post 16.51 EPS for the current fiscal year.

Chevron Announces Dividend

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

Wall Street Analyst Weigh In

CVX has been the topic of a number of research reports. TD Cowen upped their price objective on Chevron from $200.00 to $205.00 and gave the company a "hold" rating in a report on Wednesday, August 5th. 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 report on Thursday, July 2nd. Zacks Research cut shares of Chevron from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 8th. Mizuho set a $224.00 price target on shares of Chevron in a research note on Monday, August 3rd. Finally, Piper Sandler raised 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. Twenty analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Chevron has a consensus rating of "Moderate Buy" and a consensus target price of $211.35.

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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