Chevron (NYSE:CVX) Stock Price Up 3.1% - Still a Buy?

Key Points

• Chevron shares rose 3.1% to about $211.56, supported by crude oil moving above $92.60 amid Middle East supply concerns.
• Analyst sentiment remains favorable, with UBS raising its price target to $235 and MarketBeat’s consensus rating at “Moderate Buy.” Chevron also reported quarterly EPS and revenue above estimates and pays a 3.4% dividend yield.
• The Hess Midstream restructuring could lower Bakken costs and improve returns, but it may produce a $3 billion–$4 billion closing loss; Gulf of Mexico disruptions, diesel-export policy risks and substantial insider selling are additional concerns.

Chevron Corporation (NYSE:CVX - Get Free Report) shares were up 3.1% during trading on Thursday. The company traded as high as $212.36 and last traded at $211.5630. 7,598,594 shares changed hands during mid-day trading, a decline of 28% from the average daily volume of 10,502,188 shares. The stock had previously closed at $205.15.

More Chevron News

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Crude oil moved above $92.60 amid concerns that Middle East tensions could disrupt supplies. Higher oil prices generally support Chevron’s upstream earnings and cash flow. Why Is Chevron Stock Surging on Thursday?
• Positive Sentiment: UBS raised its price target for Chevron to $235, adding to bullish sentiment. Zacks also upgraded the stock to “strong buy,” while other commentary highlighted Chevron’s cash generation, estimates and dividend appeal. Chevron highlighted as Zacks Bull
• Positive Sentiment: Chevron’s restructuring of its Hess Midstream relationship is expected to reduce Bakken midstream costs by about 50%, extend contracts through 2045 and improve return on capital. The company will also receive $200 million, while the transaction is expected to simplify its portfolio and address roughly $3.7 billion of related debt exposure. Chevron to Divest its Ownership Interests in Hess Midstream
• Neutral Sentiment: A tropical storm prompted Chevron to shut in four Gulf of Mexico facilities and evacuate some personnel. The temporary output reduction could tighten fuel markets and support prices, but it also creates near-term production and operational risk. Chevron Shuts In Four Gulf Facilities
• Negative Sentiment: The Hess Midstream transaction carries an estimated $3 billion to $4 billion closing loss, creating a substantial near-term earnings and valuation headwind despite the expected long-term cost savings. Chevron Is Offloading Hess Midstream
• Negative Sentiment: Chevron CEO Mike Wirth warned that a potential U.S. diesel-export ban could reduce global supply and worsen the energy crisis. Although the comments support Chevron’s policy position, an export restriction could pressure refining economics and disrupt markets. Chevron CEO warns against diesel export ban

Analysts Set New Price Targets

A number of brokerages recently issued reports on CVX. Wells Fargo & Company upped their price target on Chevron from $226.00 to $230.00 and gave the company an "overweight" rating in a report on Thursday, September 3rd. Weiss Ratings upgraded shares of Chevron from a "hold (c)" rating to a "buy (b)" rating in a research report on Tuesday, August 11th. BMO Capital Markets upped their target price on shares of Chevron from $210.00 to $235.00 and gave the company an "outperform" rating in a report on Thursday, September 3rd. Barclays dropped their target price on shares of Chevron from $216.00 to $208.00 and set an "equal weight" rating on the stock in a research report on Monday, August 17th. Finally, Bank of America lifted their price target on shares of Chevron from $210.00 to $227.00 and gave the stock a "buy" rating in a research note on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $210.24.

Chevron Stock Up 3.1%

The business has a 50-day simple moving average of $203.83 and a two-hundred day simple moving average of $192.87. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.98 and a current ratio of 1.25. The company has a market capitalization of $418.00 billion, a price-to-earnings ratio of 20.28, a PEG ratio of 0.58 and a beta of 0.53.

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, 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 business had revenue of $67.20 billion for the quarter, compared to analyst estimates of $62.72 billion. During the same quarter in the previous year, the company posted $1.77 earnings per share. The company's revenue for the quarter was up 57.4% compared to the same quarter last year. As a group, equities analysts predict that Chevron Corporation will post 17.47 EPS for the current year.

Chevron Announces Dividend

The company 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 3.4%. The ex-dividend date of this dividend was Wednesday, August 19th. Chevron's payout ratio is currently 68.26%.

Insider Activity

In other news, Director John B. Hess sold 710,665 shares of Chevron stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $194.10, for a total value of $137,940,076.50. Following the sale, the director owned 363,711 shares of the company's stock, valued at $70,596,305.10. The trade was a 66.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Michael K. Wirth sold 317,100 shares of the business's stock in a transaction dated 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 transaction, the chief executive officer owned 26,308 shares in the company, valued at approximately $5,273,701.68. This trade represents a 92.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,152,582 shares of company stock worth $225,853,661 in the last 90 days. Corporate insiders own 0.56% of the company's stock.

Institutional Investors Weigh In On Chevron

A number of hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of Chevron in the second quarter valued at approximately $25,663,729,000. Bank of New York Mellon Corp acquired a new position in Chevron during the second quarter worth $2,378,114,000. Legal & General Group Plc purchased a new position in Chevron in the second quarter worth $1,462,412,000. Berkshire Hathaway Inc raised its position in Chevron by 6.6% in the fourth quarter. Berkshire Hathaway Inc now owns 130,156,362 shares of the oil and gas company's stock worth $19,837,131,000 after acquiring an additional 8,091,570 shares in the last quarter. Finally, Deutsche Bank AG acquired a new stake in Chevron in the second quarter valued at $1,189,577,000. 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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