Chevron (NYSE:CVX) Shares Down 1.6% - Should You Sell?

Key Points

• Chevron shares fell 1.6% to about $228.18, with trading volume 38% below the average session level.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating, while expectations for a strong earnings rebound and recent ETF buying support the stock. However, its strong performance may already be reflected in the valuation.
• Chevron reported earnings and revenue above estimates in its latest quarter, maintains a 3.1% dividend yield, and is pursuing long-term growth projects including a proposed $13.8 billion Vaca Muerta expansion; recent insider selling is a potential cautionary signal.

Shares of Chevron Corporation (NYSE:CVX - Get Free Report) fell 1.6% during trading on Tuesday. The stock traded as low as $227.63 and last traded at $228.1840. 6,429,134 shares changed hands during trading, a decline of 38% from the average session volume of 10,331,153 shares. The stock had previously closed at $232.01.

More Chevron News

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron is expected to post a sharp year-over-year earnings rebound, with analysts anticipating a potential quarterly beat. However, the stock’s strong year-to-date performance means much of the improvement may already be reflected in its valuation. Chevron Eyes a Q3 Earnings Beat
• Positive Sentiment: Exchange-traded funds recorded approximately $50.5 million of net buying in Chevron on October 23, indicating continued institutional demand for the energy major. Chevron Sees $50.5 Million in Net ETF Buying
• Positive Sentiment: Chevron Australia signed a five-year agreement to supply South32 with 55 petajoules of natural gas beginning in 2028, providing longer-term contracted demand for its Australian business. Chevron’s Australian Business Signs Long-Term Natural Gas Deal
• Positive Sentiment: Chevron outlined a proposed $13.8 billion expansion of its Vaca Muerta operations through 2035, targeting a tripling of oil production from the Argentine shale assets and supporting long-term growth. Chevron Plans Vaca Muerta Expansion

Analyst Ratings Changes

Several brokerages recently weighed in on CVX. Piper Sandler increased their price objective on Chevron from $207.00 to $243.00 and gave the stock an "overweight" rating in a research report on Thursday, September 3rd. Wall Street Zen raised Chevron from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. Argus increased their price target on Chevron from $206.00 to $211.00 and gave the stock a "buy" rating in a report on Tuesday, August 11th. 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 report on Thursday, July 2nd. Finally, Jefferies Financial Group boosted their price objective on shares of Chevron from $216.00 to $233.00 and gave the company a "buy" rating in a report on Monday, August 17th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $213.96.

Chevron Stock Performance

The company has a quick ratio of 0.98, a current ratio of 1.25 and a debt-to-equity ratio of 0.19. The firm has a market capitalization of $450.84 billion, a PE ratio of 21.88, a price-to-earnings-growth ratio of 0.55 and a beta of 0.53. The firm has a 50-day moving average price of $210.44 and a 200 day moving average price of $191.27.

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 the consensus estimate of $5.55 by $0.51. The company 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%. Chevron's revenue was up 57.4% compared to the same quarter last year. During the same period in the previous year, the company posted $1.77 EPS. Research analysts expect that Chevron Corporation will post 18.20 earnings per share for the current year.

Chevron Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Stockholders of record on Wednesday, August 19th were given a dividend of $1.78 per share. The ex-dividend date of this dividend was Wednesday, August 19th. This represents a $7.12 dividend on an annualized basis and a dividend yield of 3.1%. Chevron's dividend payout ratio is currently 68.26%.

Insider Buying and Selling

In other Chevron news, insider Andrew Walz sold 16,800 shares of the company's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $201.06, for a total transaction of $3,377,808.00. Following the sale, the insider owned 14 shares in the company, valued at $2,814.84. This represents a 99.92% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider R. Pate sold 40,700 shares of the stock in a transaction dated Tuesday, October 20th. The shares were sold at an average price of $226.65, for a total value of $9,224,655.00. Following the completion of the sale, the insider directly owned 8,791 shares in the company, valued at $1,992,480.15. This represents a 82.24% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,195,682 shares of company stock valued at $235,619,780 in the last three months. 0.56% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Chevron

Several institutional investors have recently modified their holdings of the company. Willow Creek Wealth Management Inc. acquired a new position in shares of Chevron in the 3rd quarter valued at $202,000. Great Lakes Retirement Inc. increased its stake in Chevron by 1.9% in the third quarter. Great Lakes Retirement Inc. now owns 15,333 shares of the oil and gas company's stock valued at $3,131,000 after purchasing an additional 293 shares during the period. Generali Asset Management SPA SGR raised its holdings in shares of Chevron by 5.1% in the third quarter. Generali Asset Management SPA SGR now owns 50,378 shares of the oil and gas company's stock valued at $10,288,000 after buying an additional 2,442 shares during the last quarter. Asset Management One Co. Ltd. raised its holdings in shares of Chevron by 1.8% in the third quarter. Asset Management One Co. Ltd. now owns 945,475 shares of the oil and gas company's stock valued at $193,075,000 after buying an additional 16,352 shares during the last quarter. Finally, Lynch Investment Planning LLC acquired a new stake in shares of Chevron during the third quarter worth about $100,000. 72.42% of the stock is owned by hedge funds and other institutional investors.

Chevron Company Profile

Chevron Corporation NYSE: CVX is an integrated energy company engaged in the exploration, development, production, transportation and sale of crude oil and natural gas. Its upstream operations include oil and gas exploration and production, while its downstream business includes refining crude oil, marketing fuels and manufacturing and distributing lubricants, petrochemicals and fuel additives.

The company also invests in lower-carbon businesses and technologies, including renewable fuels, carbon capture and storage, hydrogen and other opportunities intended to reduce emissions from its operations and energy products.

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