Chevron (NYSE:CVX) Trading Up 2.5% – Time to Buy?

Chevron Corporation (NYSE:CVX)’s share price was up 2.5% during mid-day trading on Tuesday . The stock traded as high as $217.78 and last traded at $217.5240. Approximately 9,537,538 shares were traded during trading, a decline of 10% from the average session volume of 10,578,358 shares. The stock had previously closed at $212.17.

Key Chevron News

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Management is positioning Chevron for tighter oil markets. CEO Mike Wirth reportedly believes global spare-oil capacity has largely disappeared and is committing roughly $7 billion to production in a higher-risk oil region. The investment could provide significant upside if supply constraints keep crude prices elevated, although it increases geopolitical and execution exposure. Chevron’s CEO Thinks the World Is Out of Spare Oil. He Is Betting $7 Billion on Being Right.
• Positive Sentiment: Chevron is expanding its global LNG strategy. The company is evaluating gas and LNG opportunities in Argentina, the Mediterranean, Africa and Australia, while pursuing demand from emerging Asian markets and an LNG-related deal with India. Diversifying supply could strengthen long-term growth and benefit from renewed energy-security spending. Chevron eyes Argentina, Mediterranean for global LNG growth, deal with India
• Positive Sentiment: Higher oil prices and operating momentum are supporting the shares. Coverage highlights Chevron’s record production, strong cash generation and rising earnings estimates. The stock’s new 52-week high reflects investor confidence that constrained supply can improve upstream profitability. Chevron Sees Higher Oil Prices Ahead: Is It Set for More Upside?
• Neutral Sentiment: Chevron signed a technical consultancy agreement for Iraq’s West Qurna-2 oil field. The deal may create future growth or service opportunities, but it does not represent an immediate production or earnings increase. Chevron signs technical consultancy deal for Iraq’s huge West Qurna-2 oil field
• Negative Sentiment: Execution and geopolitical risks remain important. Chevron’s larger commitment to riskier oil regions and its continued uncertainty around Venezuela could lead to delays, regulatory complications or weaker-than-expected returns if conditions deteriorate. Chevron: Still Waiting For Clear Results From Venezuela

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on CVX. Bank of America increased their target price 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. Jefferies Financial Group reaffirmed a “buy” rating and set a $216.00 price objective on shares of Chevron in a research note on Friday, July 10th. TD Cowen increased their price objective on Chevron from $200.00 to $205.00 and gave the stock a “hold” rating in a research report on Wednesday, August 5th. Dbs Bank raised Chevron to a “moderate buy” rating in a report on Thursday, August 6th. Finally, Mizuho set a $224.00 price objective on shares of Chevron in a research report on Monday, August 3rd. Twenty analysts have rated the stock with 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, Chevron has an average rating of “Moderate Buy” and a consensus target price of $211.35.

Chevron Stock Up 2.5%

The firm has a market cap of $429.78 billion, a PE ratio of 20.86, a P/E/G ratio of 0.63 and a beta of 0.50. The firm’s 50 day moving average is $196.40 and its 200-day moving average is $191.00. 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 (NYSE:CVX) 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. The firm had revenue of $67.20 billion during the quarter, compared to the consensus estimate of $62.72 billion. Chevron had a net margin of 9.57% and a return on equity of 11.09%. Chevron’s revenue was up 57.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.77 earnings per share. As a group, equities research analysts expect that Chevron Corporation will post 16.51 earnings per share for the current fiscal year.

Chevron Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Wednesday, August 19th were paid a dividend of $1.78 per share. This represents a $7.12 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date was Wednesday, August 19th. Chevron’s dividend payout ratio (DPR) is 68.26%.

Insider Buying and Selling at Chevron

In other news, insider Andrew Walz sold 16,800 shares of the business’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $201.06, for a total value of $3,377,808.00. Following the sale, the insider owned 14 shares of the company’s stock, valued at approximately $2,814.84. The trade was a 99.92% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider R. Pate sold 2,470 shares of the company’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $205.11, for a total value of $506,621.70. Following the sale, the insider directly owned 10,794 shares of the company’s stock, valued at approximately $2,213,957.34. This represents a 18.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 1,152,582 shares of company stock worth $225,853,661. Company insiders own 0.56% of the company’s stock.

Institutional Trading of Chevron

A number of institutional investors and hedge funds have recently made changes to their positions in CVX. BlackRock Inc. acquired a new stake in shares of Chevron during the 2nd quarter worth approximately $25,663,729,000. Norges Bank bought a new position in Chevron during the 4th quarter valued at about $3,727,586,000. Bank of New York Mellon Corp acquired a new position in shares of Chevron in the 2nd quarter worth approximately $2,378,114,000. Legal & General Group Plc acquired a new position in Chevron in the second quarter worth $1,462,412,000. Finally, Berkshire Hathaway Inc grew its holdings in Chevron by 6.6% during the 4th 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 during the last quarter. Institutional investors and hedge funds own 72.42% of the company’s stock.

About Chevron

Chevron Corporation is an integrated energy company engaged in the exploration, production, transportation and sale of crude oil and natural gas. The company also manufactures and markets transportation fuels, lubricants, petrochemicals and additives through operations and brands that include Chevron, Texaco and Caltex.

Chevron’s upstream activities include oil and natural gas exploration and production, while its downstream business includes refining, fuel marketing, transportation and related energy services.