Chevron (NYSE:CVX) Shares Up 2% - Time to Buy?

Key Points

• Chevron shares rose 2% to about $222, helped by an analyst upgrade, higher EPS estimates, and expectations for a swift recovery in Gulf of Mexico production following hurricane disruption.
• Analysts maintain a broadly positive outlook, with MarketBeat reporting a “Moderate Buy” consensus; however, the $213.08 average price target is below the current share price, raising valuation concerns.
• Chevron’s latest quarter exceeded earnings and revenue expectations, while its $1.78 quarterly dividend provides a 3.2% yield. Investors should also weigh hurricane and policy risks, as well as substantial recent insider selling.

Chevron Corporation (NYSE:CVX - Get Free Report)'s stock price shot up 2% during trading on Wednesday. The stock traded as high as $222.55 and last traded at $222.0460. Approximately 9,463,304 shares changed hands during mid-day trading, a decline of 9% from the average daily volume of 10,448,533 shares. The stock had previously closed at $217.73.

Key Headlines Impacting Chevron

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Analyst support: Chevron shares benefited from an analyst upgrade, while Erste Group raised its fiscal 2026 and 2027 EPS estimates to $16.90 and $13.78, respectively. The revisions reinforce expectations for solid earnings. Chevron Stock Jumps After Analyst Upgrade
• Positive Sentiment: Gulf production recovery: Chevron is restoring offshore operations after Hurricane Isaias, with facilities reportedly avoiding significant damage. A quick restart limits disruption and supports near-term production and cash flow. Chevron and Shell Lead U.S. Gulf Oil Production Recovery
• Positive Sentiment: Venezuela and international growth: Chevron is among the companies investing to revive Venezuela’s oil industry, potentially adding long-term production and helping replace supply disrupted around the Strait of Hormuz. Its expertise also contributed to first commercial gas production from Australia’s Beetaloo Basin, expanding future LNG opportunities. Venezuela’s Oil Revival
• Positive Sentiment: Income appeal: Commentary continues to highlight Chevron’s integrated operations, which can help stabilize cash generation when crude prices weaken. The company was also included in Zacks’ highest-rated income-stock list, supporting its appeal to dividend investors. Oil Giants and Dividends
• Neutral Sentiment: AI investment discipline: Chevron’s finance leadership says artificial-intelligence projects must compete for capital alongside core energy investments. This suggests disciplined spending, but the article does not identify a material near-term earnings impact. How Chevron’s CFO Evaluates AI Investments
• Negative Sentiment: Valuation concerns: One analysis argues Chevron remains overvalued after its rally, while another notes that the recent advance has not erased a decade of underperformance versus the broader market. These points could limit further upside. Is Chevron Overvalued?
• Negative Sentiment: Hurricane and policy risks: Gulf Coast storms can benefit some refining assets while hurting others, depending on location and diversification. Separately, Chevron’s CEO warned that restrictions on diesel and fuel exports could backfire, highlighting regulatory and market risks. How a Hurricane Could Help or Hurt Refineries

Analyst Upgrades and Downgrades

CVX has been the topic of a number of recent research reports. The Goldman Sachs Group cut their price objective on Chevron from $240.00 to $228.00 and set a "buy" rating on the stock in a research report on Tuesday, September 22nd. Barclays lowered their target price on Chevron from $216.00 to $208.00 and set an "equal weight" rating for the company in a research note on Monday, August 17th. Mizuho set a $234.00 price target on Chevron in a report on Monday. Wells Fargo & Company increased their price target on Chevron from $226.00 to $230.00 and gave the company an "overweight" rating in a research report on Thursday, September 3rd. Finally, Wolfe Research raised Chevron from a "peer perform" rating to an "outperform" rating and set a $210.00 price target on the stock in a research report on Thursday, July 2nd. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Chevron has a consensus rating of "Moderate Buy" and a consensus target price of $213.08.

Chevron Trading Up 2.0%

The firm has a market capitalization of $438.71 billion, a PE ratio of 21.29, a PEG ratio of 0.60 and a beta of 0.53. The company's 50-day moving average price is $205.49 and its 200-day moving average price is $193.13. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.98 and a current ratio of 1.25.

Chevron (NYSE:CVX - Get Free Report) last announced its quarterly earnings results on Friday, July 31st. The oil and gas company reported $6.06 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 the consensus estimate of $62.72 billion. During the same period in the prior year, the company posted $1.77 earnings per share. The firm's quarterly revenue was up 57.4% compared to the same quarter last year. On average, sell-side analysts expect that Chevron Corporation will post 17.43 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. Shareholders of record on Wednesday, August 19th were paid a $1.78 dividend. This represents a $7.12 annualized dividend and a yield of 3.2%. The ex-dividend date was Wednesday, August 19th. Chevron's dividend payout ratio is currently 68.26%.

Insider Transactions at Chevron

In other news, Director John B. Hess sold 710,665 shares of the business's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $194.10, for a total value of $137,940,076.50. Following the completion of the sale, the director directly owned 363,711 shares of the company's stock, valued at approximately $70,596,305.10. The trade was a 66.15% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Andrew Walz sold 16,800 shares of the business's stock in a transaction dated 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 completion of the sale, the insider directly owned 14 shares of the company's stock, valued at $2,814.84. The trade was a 99.92% 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 worth $225,853,661. 0.56% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Midwest Capital Advisors LLC bought a new position in shares of Chevron in the first quarter valued at approximately $25,000. Main Street Group LTD acquired a new position in shares of Chevron during the first quarter valued at approximately $28,000. Phillip James Consulting Co. bought a new stake in Chevron during the fourth quarter worth approximately $26,000. Kilter Group LLC bought a new stake in Chevron during the second quarter worth approximately $28,000. Finally, Basso Capital Management L.P. acquired a new stake in Chevron in the fourth quarter worth approximately $27,000. Institutional investors and hedge funds own 72.42% of the company's stock.

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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