Chevron (NYSE:CVX) Trading 1.9% Higher – Should You Buy?

Chevron Corporation (NYSE:CVX) shares shot up 1.9% during mid-day trading on Wednesday . The stock traded as high as $215.28 and last traded at $213.6890. 8,358,233 shares changed hands during trading, a decline of 21% from the average daily volume of 10,619,920 shares. The stock had previously closed at $209.80.

Trending Headlines about Chevron

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron CEO Mike Wirth said crude-oil buffers that had limited price increases during the Iran conflict have been depleted. He warned that continued conflict could push oil prices higher over the next several months, potentially benefiting Chevron’s upstream earnings and cash flow. Chevron CEO says depleted crude oil buffers could lead to higher prices
• Positive Sentiment: Brent crude recently moved above $100 a barrel as Middle East tensions escalated, lifting Chevron and other major energy stocks to 52-week highs. Higher realized oil prices are generally supportive of Chevron’s revenue, margins and shareholder distributions. Why Did CVX, COP, VLO Stocks Jump To 52-Week Highs?
• Positive Sentiment: Analyst commentary continues to present Chevron as a balanced income investment, supported by its dividend, solid balance sheet and potential growth in its power business. A Zacks blog also cited high oil prices, production strength and financial stability as positives for the company’s outlook. There Are Only a Handful of Dow Stocks That Yield Over 3%
• Neutral Sentiment: Chevron is among the most-watched stocks on Zacks, but the coverage mainly highlights investor attention rather than a new earnings forecast or company announcement. Chevron Corporation Is Attracting Investor Attention
• Negative Sentiment: With oil above $100 and CVX near its annual high, some commentary cautions that a further rally could be difficult to sustain. A reversal in crude prices or de-escalation of geopolitical tensions would reduce a key near-term catalyst. Oil Just Topped $109. Is It Too Late to Buy Chevron?

Analyst Upgrades and Downgrades

A number of brokerages recently commented on CVX. Bank of America lifted their price objective on Chevron from $210.00 to $227.00 and gave the stock a “buy” rating in a research report on Tuesday, July 28th. Barclays cut their target price on shares of Chevron from $216.00 to $208.00 and set an “equal weight” rating on the stock in a research report on Monday, August 17th. Morgan Stanley lifted their price target on shares of Chevron from $210.00 to $218.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 19th. BMO Capital Markets boosted their price target on shares of Chevron from $210.00 to $235.00 and gave the stock an “outperform” rating in a research note on Thursday, September 3rd. Finally, Weiss Ratings upgraded shares of Chevron from a “hold (c)” rating to a “buy (b)” rating in a report on Tuesday, August 11th. Twenty analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Chevron currently has an average rating of “Moderate Buy” and a consensus target price of $211.35.

Chevron Stock Up 0.6%

The firm has a market cap of $422.74 billion, a P/E ratio of 20.51, a price-to-earnings-growth ratio of 0.63 and a beta of 0.50. The firm’s 50 day moving average is $194.62 and its two-hundred day moving average is $190.61. The company has a current ratio of 1.25, a quick ratio of 0.98 and a debt-to-equity ratio of 0.19.

Chevron (NYSE:CVX) last posted its earnings results on Friday, July 31st. The oil and gas company reported $6.06 earnings per share for the quarter, topping the consensus estimate of $5.55 by $0.51. Chevron had a net margin of 9.57% and a return on equity of 11.09%. The company had revenue of $67.20 billion for the quarter, compared to analyst estimates of $62.72 billion. During the same period last year, the business posted $1.77 earnings per share. The business’s revenue for the quarter was up 57.4% compared to the same quarter last year. As a group, research analysts anticipate that Chevron Corporation will post 16.51 EPS for the current fiscal year.

Chevron Dividend Announcement

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

Insiders Place Their Bets

In other Chevron news, CEO Michael K. Wirth sold 317,100 shares of Chevron stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $200.46, for a total value of $63,565,866.00. Following the transaction, the chief executive officer owned 26,308 shares of the company’s stock, valued at approximately $5,273,701.68. The trade was a 92.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director John B. Hess sold 710,665 shares of the stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $194.10, for a total transaction of $137,940,076.50. Following the sale, the director directly owned 363,711 shares of the company’s stock, valued at $70,596,305.10. This represents a 66.15% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 1,152,582 shares of company stock worth $225,853,661. Company insiders own 0.56% of the company’s stock.

Hedge Funds Weigh In On Chevron

A number of large investors have recently added to or reduced their stakes in the company. Keystone Financial Planning Inc. boosted its position in shares of Chevron by 228.8% during the second quarter. Keystone Financial Planning Inc. now owns 81,844 shares of the oil and gas company’s stock worth $13,566,000 after buying an additional 56,954 shares during the period. Rench Wealth Management Inc. lifted its stake in Chevron by 0.8% in the 2nd quarter. Rench Wealth Management Inc. now owns 33,778 shares of the oil and gas company’s stock valued at $5,599,000 after acquiring an additional 252 shares in the last quarter. Miramontes Capital LLC lifted its position in shares of Chevron by 3.9% in the second quarter. Miramontes Capital LLC now owns 15,410 shares of the oil and gas company’s stock worth $2,554,000 after purchasing an additional 581 shares in the last quarter. Core Capital Management & Research inc. acquired a new position in Chevron during the second quarter worth $2,541,000. Finally, The Manufacturers Life Insurance Company increased its stake in Chevron by 2.1% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 1,519,457 shares of the oil and gas company’s stock valued at $251,865,000 after buying an additional 31,907 shares during the last quarter. Institutional investors 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.