Chevron (NYSE:CVX) Shares Down 1.1% – What’s Next?

Chevron Corporation (NYSE:CVX)’s share price traded down 1.1% on Wednesday. The stock traded as low as $204.86 and last traded at $205.2630. Approximately 5,700,855 shares were traded during trading, a decline of 46% from the average daily volume of 10,509,698 shares. The stock had previously closed at $207.58.

More Chevron News

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Bakken cost reductions: Chevron will transfer its Hess Midstream ownership interests and certain DJ Basin assets in exchange for revised Bakken terms. The new agreements are expected to reduce Chevron’s Bakken midstream costs by approximately 50%, improve return on capital employed, and simplify its portfolio. Chevron divestiture announcement
• Positive Sentiment: Balance-sheet and earnings potential: Analysts say the restructuring could remove roughly $3.7 billion of debt from the assets’ economics and strengthen Chevron’s Bakken profitability. The company is expected to receive a $200 million payment as part of the transaction. Chevron portfolio reshaping analysis
• Positive Sentiment: Supportive industry backdrop and analyst view: CEO Mike Wirth said global oil and fuel inventories are tightening as geopolitical tensions continue, a backdrop that can support crude and refined-product prices. Zacks also upgraded Chevron to “Strong Buy.” Chevron CEO on diesel exports
• Neutral Sentiment: Strategic and leadership developments: Chevron increased its position in Namibia’s PEL 90 exploration block ahead of the Nabba-1X well, adding longer-term exploration optionality. The company also named an internal executive to become CFO, supporting continuity but creating little immediate earnings impact. Chevron Namibia exploration update
• Negative Sentiment: Large near-term accounting hit: Chevron is expected to record a roughly $3 billion to $4 billion loss on the Hess Midstream restructuring. Although primarily a portfolio and accounting effect, the charge may weigh on near-term sentiment and offsets some of the deal’s longer-term cost benefits. Chevron Hess Midstream restructuring analysis
• Negative Sentiment: Operational and policy risks: Chevron plans to reduce Bakken drilling activity, while a potential U.S. diesel-export ban could disrupt global supply and invite political or market uncertainty. The company also evacuated nonessential Gulf of Mexico personnel ahead of a possible storm, creating a temporary operational risk. Chevron Gulf of Mexico storm response

Analysts Set New Price Targets

Several brokerages have commented on CVX. Wells Fargo & Company upped their target price on shares of Chevron from $226.00 to $230.00 and gave the company an “overweight” rating in a research note on Thursday, September 3rd. Argus lifted their price target on shares of Chevron from $206.00 to $211.00 and gave the stock a “buy” rating in a research report on Tuesday, August 11th. UBS Group set a $250.00 price target on shares of Chevron in a report on Friday, September 25th. TD Cowen upped their price objective on shares of Chevron from $205.00 to $215.00 and gave the company a “hold” rating in a research report on Monday, September 28th. Finally, Royal Bank Of Canada raised their price objective on Chevron from $220.00 to $230.00 and gave the stock an “outperform” rating in a research note on Thursday, September 24th. 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 stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $210.87.

Chevron Stock Down 1.1%

The firm has a market capitalization of $405.55 billion, a P/E ratio of 19.68, a PEG ratio of 0.57 and a beta of 0.53. 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 firm’s 50-day moving average is $203.56 and its 200 day moving average is $192.84.

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, topping analysts’ consensus estimates of $5.55 by $0.51. The firm had revenue of $67.20 billion during the quarter, compared to analysts’ expectations 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% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.77 EPS. As a group, equities research analysts predict that Chevron Corporation will post 17.47 EPS for the current fiscal year.

Chevron Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Wednesday, August 19th were given a $1.78 dividend. This represents a $7.12 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date of this dividend was Wednesday, August 19th. Chevron’s dividend payout ratio (DPR) is currently 68.26%.

Insider Transactions at Chevron

In other Chevron news, Director John Hess sold 100,000 shares of the business’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $194.26, for a total value of $19,426,000.00. Following the sale, the director owned 178,045 shares in the company, valued at approximately $34,587,021.70. The trade was a 35.97% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 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 value of $63,565,866.00. Following the transaction, 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. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 1,152,582 shares of company stock worth $225,853,661. 0.56% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. First PREMIER Bank increased its stake in Chevron by 0.8% in the 2nd quarter. First PREMIER Bank now owns 6,450 shares of the oil and gas company’s stock worth $1,070,000 after acquiring an additional 50 shares during the last quarter. Vanguard Capital Wealth Advisors raised its stake in Chevron by 1.8% during the second quarter. Vanguard Capital Wealth Advisors now owns 2,818 shares of the oil and gas company’s stock valued at $467,000 after purchasing an additional 50 shares in the last quarter. Nautilus Advisors LLC grew its stake in shares of Chevron by 2.8% in the 3rd quarter. Nautilus Advisors LLC now owns 1,859 shares of the oil and gas company’s stock worth $380,000 after buying an additional 50 shares in the last quarter. Cornerstone Advisory LLC grew its stake in shares of Chevron by 0.9% in the 1st quarter. Cornerstone Advisory LLC now owns 5,625 shares of the oil and gas company’s stock worth $1,164,000 after buying an additional 52 shares in the last quarter. Finally, Compton Financial Group LLC increased its holdings in shares of Chevron by 1.9% in the 1st quarter. Compton Financial Group LLC now owns 2,944 shares of the oil and gas company’s stock worth $609,000 after buying an additional 56 shares during the last quarter. Institutional investors 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.