Chevron (NYSE:CVX) Shares Gap Up – Should You Buy?

Chevron Corporation (NYSE:CVX) shares gapped up prior to trading on Monday . The stock had previously closed at $155.90, but opened at $165.75. Chevron shares last traded at $162.62, with a volume of 13,520,823 shares traded.

Key Chevron News

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Catalyst — U.S. forces captured Venezuela’s leader and President Trump signaled U.S. interest in reviving Venezuelan oil access, boosting investor hopes that American majors (and Chevron, the only large U.S. operator still in Venezuela) could gain market share. Chevron, US refiners’ shares surge after Trump’s move toward Venezuela oil
• Positive Sentiment: Market positioning — Unusually large call buying today (147,579 calls, ~+385% vs. typical daily call volume) signals strong speculative/bullish bets that CVX will rise further in the short term.
• Positive Sentiment: Deal flow potential — A former Chevron executive is reportedly raising ~$2 billion for Venezuelan oil projects, highlighting near-term investor interest and potential capital directed at Venezuelan opportunities that could benefit industry incumbents. Ex-Chevron executive seeks $2bn for Venezuelan oil projects
• Neutral Sentiment: Prices vs. equities — Several reports note oil equities are rallying while crude prices have only moved modestly; that divergence means gains for CVX could be more sentiment-driven and vulnerable if oil prices don’t follow. Chevron, Exxon and SLB Stocks Are Surging But Oil Prices Aren’t Moving. What’s Up.
• Neutral Sentiment: Limited company engagement — Multiple reports say the Trump administration did not consult majors (including Chevron) before/after the Venezuela action, suggesting companies may not be direct beneficiaries of policy moves in the near term. Trump administration has not consulted US oil majors about Venezuela, oil execs say
• Negative Sentiment: Analyst tweak — Citigroup trimmed its CVX price target from $185 to $179 (still a Buy), a modest downgrade that signals caution from some sell-side analysts even as sentiment turns positive. Benzinga
• Negative Sentiment: Macro/structural risk — Analysis warns Venezuela’s situation could keep global oil prices lower for longer or introduce execution, legal and reputational risks for firms tied to Venezuelan assets; those factors could limit lasting upside for CVX. Chevron: Venezuela Could Keep Oil Price Below $60 For Longer

Analyst Upgrades and Downgrades

Several research firms have issued reports on CVX. Scotiabank boosted their price objective on shares of Chevron from $160.00 to $165.00 and gave the company a “sector perform” rating in a research report on Thursday, October 9th. Wall Street Zen raised Chevron from a “sell” rating to a “hold” rating in a research report on Saturday, November 8th. UBS Group reissued a “buy” rating on shares of Chevron in a research report on Monday, December 1st. Morgan Stanley lifted their price objective on Chevron from $177.00 to $180.00 and gave the company an “overweight” rating in a report on Thursday, November 13th. Finally, Zacks Research upgraded shares of Chevron from a “strong sell” rating to a “hold” rating in a report on Tuesday, December 23rd. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $166.90.

Chevron Price Performance

The firm has a 50-day simple moving average of $151.88 and a two-hundred day simple moving average of $153.09. The company has a market capitalization of $331.86 billion, a price-to-earnings ratio of 23.15, a P/E/G ratio of 9.76 and a beta of 0.70. The company has a current ratio of 1.15, a quick ratio of 0.86 and a debt-to-equity ratio of 0.19.

Chevron (NYSE:CVX) last announced its earnings results on Friday, October 31st. The oil and gas company reported $1.85 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.71 by $0.14. Chevron had a return on equity of 8.74% and a net margin of 6.57%.The firm had revenue of $48.17 billion for the quarter, compared to analyst estimates of $46.99 billion. During the same quarter last year, the firm posted $2.48 EPS. The business’s revenue was down 1.9% on a year-over-year basis. As a group, analysts predict that Chevron Corporation will post 10.79 earnings per share for the current fiscal year.

Chevron Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, December 10th. Stockholders of record on Tuesday, November 18th were given a dividend of $1.71 per share. This represents a $6.84 annualized dividend and a dividend yield of 4.2%. The ex-dividend date of this dividend was Tuesday, November 18th. Chevron’s payout ratio is presently 96.20%.

Insider Transactions at Chevron

In related news, Director John B. Hess sold 275,000 shares of the business’s stock in a transaction on Thursday, November 20th. The stock was sold at an average price of $150.75, for a total transaction of $41,456,250.00. Following the completion of the transaction, the director directly owned 1,128,045 shares of the company’s stock, valued at $170,052,783.75. The trade was a 19.60% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.20% of the company’s stock.

Institutional Investors Weigh In On Chevron

Large investors have recently modified their holdings of the company. Perigon Wealth Management LLC lifted its stake in Chevron by 19.3% in the 3rd quarter. Perigon Wealth Management LLC now owns 73,448 shares of the oil and gas company’s stock valued at $11,406,000 after purchasing an additional 11,875 shares during the last quarter. Solitude Financial Services lifted its holdings in shares of Chevron by 8.2% during the second quarter. Solitude Financial Services now owns 25,325 shares of the oil and gas company’s stock worth $3,626,000 after buying an additional 1,913 shares in the last quarter. Pictet North America Advisors SA bought a new stake in Chevron in the 3rd quarter valued at about $5,662,000. Shell Asset Management Co. boosted its stake in shares of Chevron by 21.4% in the second quarter. Shell Asset Management Co. now owns 51,115 shares of the oil and gas company’s stock valued at $7,319,000 after buying an additional 9,002 shares during the period. Finally, Mutual Advisors LLC grew its holdings in shares of Chevron by 7.3% during the 2nd quarter. Mutual Advisors LLC now owns 88,759 shares of the oil and gas company’s stock worth $13,743,000 after purchasing an additional 6,058 shares in the last quarter. 72.42% of the stock is owned by institutional investors and hedge funds.

About Chevron

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.