Chevron (NYSE:CVX) Trading Down 1.8% – Should You Sell?

Chevron Corporation (NYSE:CVX)’s share price dropped 1.8% on Monday . The company traded as low as $191.81 and last traded at $193.1920. 9,532,204 shares were traded during mid-day trading, a decline of 14% from the average session volume of 11,113,914 shares. The stock had previously closed at $196.83.

Key Stories Impacting Chevron

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Strong Q2 earnings and higher price targets: Chevron reported adjusted earnings of $6.06 per share, exceeding the $5.55 consensus, while revenue and other income reached approximately $70.06 billion. Barclays raised its price target to $216 from $213, and Bernstein increased its target to $209 from $204. Analyst price target article
• Positive Sentiment: Operational momentum and capital discipline: Management highlighted early cost reductions, lower capital spending, global upstream opportunities and potential power projects, including a long-term artificial-intelligence power agreement with Microsoft. Chevron also plans a special employee bonus tied to strong operational performance. Chevron Q2 earnings call article
• Positive Sentiment: Base-oils expansion: Chevron is broadening its North American distribution network through partnerships with HF Sinclair Lubricants & Specialties and Renkert Oil, improving customer access to its premium base oils and process oils. Chevron base oils distribution article
• Neutral Sentiment: Higher fuel prices support near-term cash flow but increase political risk: Chevron warned that limited global refining capacity and geopolitical disruptions could keep fuel prices elevated, supporting profitability while intensifying scrutiny from consumers and policymakers.
• Negative Sentiment: Crude prices declined on Iran negotiations: Reports that U.S.-Iran talks could reduce the risk of prolonged supply disruptions triggered a crude-oil selloff, weighing on Chevron and the broader energy sector. Oil selloff article
• Negative Sentiment: Political pressure is escalating: President Trump criticized Chevron and other oil companies for profiting from high prices and demanded lower gasoline costs. Reports also raised the possibility of a Justice Department probe or export restrictions, creating potential regulatory and earnings risks. Reuters article on Trump and Chevron
• Negative Sentiment: Berkshire Hathaway reduced its stake: Berkshire reportedly cut its Chevron holding by 35%, a notable negative signal for sentiment despite Chevron’s earnings strength. Berkshire Chevron stake article

Wall Street Analyst Weigh In

A number of research firms recently issued reports on CVX. Mizuho set a $224.00 target price on shares of Chevron in a research report on Monday. Piper Sandler initiated coverage on Chevron in a research report on Thursday, July 23rd. They issued an “overweight” rating and a $207.00 target price on the stock. Weiss Ratings cut shares of Chevron from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, June 2nd. Bank of America raised their price objective on Chevron from $210.00 to $227.00 and gave the stock a “buy” rating in a research note on Tuesday, July 28th. Finally, Scotiabank raised their target price on shares of Chevron from $168.00 to $187.00 and gave the stock a “sector perform” rating in a report on Wednesday, April 22nd. Eighteen equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $207.26.

Chevron Price Performance

The business has a 50-day simple moving average of $181.95 and a two-hundred day simple moving average of $185.12. The stock has a market capitalization of $384.76 billion, a price-to-earnings ratio of 18.52, a P/E/G ratio of 0.61 and a beta of 0.50. 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 (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. Chevron had a return on equity of 11.14% and a net margin of 9.57%.The firm had revenue of $67.20 billion for the quarter, compared to analyst estimates of $62.72 billion. During the same period in the previous year, the company earned $1.77 earnings per share. Chevron’s revenue was up 57.4% compared to the same quarter last year. As a group, research analysts predict that Chevron Corporation will post 15.64 earnings per share for the current fiscal year.

Chevron Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Wednesday, August 19th will be paid a dividend of $1.78 per share. The ex-dividend date of this dividend is Wednesday, August 19th. This represents a $7.12 annualized dividend and a dividend yield of 3.7%. Chevron’s dividend payout ratio (DPR) is currently 68.26%.

Insider Buying and Selling at Chevron

In related news, Director John B. Hess sold 380,000 shares of Chevron stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $193.20, for a total value of $73,416,000.00. Following the transaction, the director owned 278,045 shares of the company’s stock, valued at approximately $53,718,294. This trade represents a 57.75% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.56% of the stock is owned by company insiders.

Institutional Trading of Chevron

Hedge funds and other institutional investors have recently modified their holdings of the business. State Street Corp increased its holdings in shares of 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 valued at $23,698,184,000 after purchasing an additional 12,789,399 shares during the period. Berkshire Hathaway Inc grew its position in Chevron by 6.6% during the fourth quarter. Berkshire Hathaway Inc now owns 130,156,362 shares of the oil and gas company’s stock valued at $19,837,131,000 after purchasing an additional 8,091,570 shares in the last quarter. Geode Capital Management LLC increased its stake in Chevron by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 43,613,011 shares of the oil and gas company’s stock valued at $6,620,187,000 after buying an additional 134,890 shares during the period. Charles Schwab Investment Management Inc. increased its stake in Chevron by 2.7% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 36,036,844 shares of the oil and gas company’s stock valued at $5,492,377,000 after buying an additional 961,341 shares during the period. Finally, Bank of America Corp DE lifted its position in Chevron by 5.1% in the 1st quarter. Bank of America Corp DE now owns 27,630,227 shares of the oil and gas company’s stock worth $5,716,694,000 after buying an additional 1,334,976 shares in the last quarter. Institutional investors and hedge funds own 72.42% of the company’s stock.

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.