Chevron Target of Unusually High Options Trading (NYSE:CVX)

Chevron Corporation (NYSE:CVX) saw some unusual options trading on Monday. Traders acquired 156,195 call options on the stock. This represents an increase of 101% compared to the typical daily volume of 77,746 call options.

Chevron Stock Up 2.6%

Shares of CVX opened at $196.08 on Tuesday. The stock has a market cap of $390.52 billion, a price-to-earnings ratio of 33.98, a P/E/G ratio of 0.64 and a beta of 0.51. The company has a quick ratio of 0.84, a current ratio of 1.09 and a debt-to-equity ratio of 0.21. Chevron has a 12 month low of $133.77 and a 12 month high of $214.71. The company has a 50-day moving average price of $193.26 and a two-hundred day moving average price of $173.68.

Chevron (NYSE:CVX) last posted its earnings results on Friday, May 1st. The oil and gas company reported $1.41 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.00 by $0.41. Chevron had a net margin of 5.79% and a return on equity of 6.90%. The company had revenue of $47.56 billion during the quarter, compared to analysts’ expectations of $51.86 billion. During the same quarter in the previous year, the company posted $2.18 earnings per share. Chevron’s quarterly revenue was up 2.1% compared to the same quarter last year. Equities analysts predict that Chevron will post 15.43 EPS for the current fiscal year.

Chevron Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, June 10th. Stockholders of record on Tuesday, May 19th will be paid a $1.78 dividend. The ex-dividend date is Tuesday, May 19th. This represents a $7.12 dividend on an annualized basis and a dividend yield of 3.6%. Chevron’s payout ratio is 123.40%.

Chevron News Summary

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron agreed to sell its Asia-Pacific downstream fuels, lubricants and refining assets to Japan’s ENEOS for about $2.2 billion, a move that should simplify the portfolio and free up capital for higher-return uses. Chevron to Divest Some Asia-Pacific Assets to Japan’s Eneos
• Positive Sentiment: Chevron’s CEO warned of potential physical oil shortages as global inventories tighten, reinforcing the bullish backdrop for oil prices and Chevron’s upstream earnings power. Chevron’s CEO Just Warned of Physical Oil Shortages
• Positive Sentiment: Unusually heavy call-option buying on Monday suggests traders are positioning for more upside in CVX, with call volume more than doubling the average.
• Neutral Sentiment: Chevron has been trending among Zacks users and is getting renewed attention from investors, but this is more of a sentiment indicator than a direct operational catalyst. Chevron Corporation (CVX) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Analyst commentary suggests Wall Street remains broadly constructive on Chevron, though the article is largely a discussion of ratings rather than a new actionable catalyst. Is Chevron (CVX) a Buy as Wall Street Analysts Look Optimistic?

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the company. Barclays raised their price target on Chevron from $180.00 to $192.00 and gave the company an “equal weight” rating in a research report on Monday, May 4th. Scotiabank raised their price target on Chevron from $168.00 to $187.00 and gave the company a “sector perform” rating in a research report on Wednesday, April 22nd. Wall Street Zen raised Chevron from a “sell” rating to a “hold” rating in a research report on Saturday, January 31st. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $220.00 price target on shares of Chevron in a research report on Tuesday, May 5th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Chevron in a research report on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Chevron has an average rating of “Moderate Buy” and a consensus price target of $204.13.

Insider Activity at Chevron

In other news, Vice Chairman Mark A. Nelson sold 139,600 shares of the firm’s stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $187.92, for a total value of $26,233,632.00. Following the sale, the insider directly owned 11,337 shares of the company’s stock, valued at approximately $2,130,449.04. This trade represents a 92.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Michael K. Wirth sold 272,624 shares of the firm’s stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $189.35, for a total value of $51,621,354.40. Following the completion of the sale, the chief executive officer directly owned 31,266 shares in the company, valued at approximately $5,920,217.10. This represents a 89.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 803,570 shares of company stock valued at $151,969,798. Insiders own 0.56% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Vanguard Group Inc. raised its position in Chevron by 17.9% in the 3rd quarter. Vanguard Group Inc. now owns 183,790,028 shares of the oil and gas company’s stock worth $28,540,753,000 after purchasing an additional 27,961,463 shares during the last quarter. Norges Bank bought a new position in Chevron in the 4th quarter worth approximately $3,727,586,000. State Street Corp raised its position in Chevron by 9.1% in the 3rd quarter. State Street Corp now owns 152,605,988 shares of the oil and gas company’s stock worth $23,698,184,000 after purchasing an additional 12,789,399 shares during the last quarter. Berkshire Hathaway Inc raised its position in Chevron by 6.6% in 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 purchasing an additional 8,091,570 shares during the last quarter. Finally, Primecap Management Co. CA bought a new position in Chevron in the 3rd quarter worth approximately $988,083,000. Institutional investors own 72.42% of the company’s stock.

Chevron Company Profile

Chevron Corporation (NYSE: CVX) is an American multinational energy company engaged in virtually all aspects of the oil and gas industry. As an integrated energy firm, Chevron’s core activities include upstream oil and natural gas exploration and production, midstream transportation and storage, downstream refining and marketing of fuels and lubricants, and petrochemical manufacturing through joint ventures and subsidiaries. The company markets fuels under brands such as Chevron, Texaco and Caltex and supplies a range of products and services to retail customers, industrial users and commercial fleets worldwide.

Chevron traces its corporate lineage to the early petroleum companies that eventually became Standard Oil of California and has evolved through significant mergers and restructurings, including the acquisitions of Gulf Oil and Texaco.