Zacks Investment Research lowered shares of Chevron (NYSE:CVX) from a strong-buy rating to a hold rating in a research report sent to investors on Wednesday, January 17th.
According to Zacks, “Shares of Chevron have risen 29.8% in the past six months, outperforming the broader industry's 25.4%, while larger rival ExxonMobil has seen its scrip go up just 10% over the same time period. The second-largest U.S. oil producer have been a beneficiary of the recovery in commodity prices. Importantly, Chevron was able to cover its investment and payouts with cash from operations in the most recent quarter – something investors really want right now. The diversified oil company also has a long, consistent dividend paying record and is one of the only two energy stocks on the list of Dividend Aristocrats. However, we remain worried over signs of headwind in Chevron's U.S. production, while exposure to production in the vulnerable and violence-prone regions in Nigeria poses additional risk. Hence, we advise investors to wait for a better entry point before buying shares in the oil major.”
CVX has been the subject of several other reports. Morgan Stanley lifted their target price on Chevron from $120.00 to $130.00 and gave the stock an overweight rating in a research note on Wednesday, October 18th. Royal Bank of Canada set a $110.00 target price on Chevron and gave the stock a sell rating in a research note on Wednesday, December 20th. Barclays lifted their target price on Chevron from $120.00 to $130.00 and gave the stock an overweight rating in a research note on Tuesday, October 10th. Jefferies Group reiterated a buy rating and set a $130.00 target price on shares of Chevron in a research note on Tuesday, October 3rd. Finally, Wells Fargo & Co restated a market perform rating and issued a $108.00 price target (up from $100.00) on shares of Chevron in a research note on Tuesday, October 3rd. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating, sixteen have given a buy rating and one has issued a strong buy rating to the stock. The company currently has an average rating of Buy and a consensus price target of $130.30.
Chevron (NYSE:CVX) last posted its quarterly earnings results on Friday, February 2nd. The oil and gas company reported $0.73 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.27 by ($0.54). The company had revenue of $37.62 billion during the quarter, compared to the consensus estimate of $38.43 billion. Chevron had a net margin of 8.57% and a return on equity of 8.46%. The firm’s revenue for the quarter was up 19.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.22 earnings per share. equities analysts forecast that Chevron will post 6.36 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Monday, March 12th. Stockholders of record on Friday, February 16th will be issued a dividend of $1.12 per share. The ex-dividend date is Thursday, February 15th. This represents a $4.48 dividend on an annualized basis and a dividend yield of 3.95%. This is a boost from Chevron’s previous quarterly dividend of $1.08. Chevron’s payout ratio is 89.26%.
In other news, EVP Michael K. Wirth sold 110,771 shares of the business’s stock in a transaction on Wednesday, November 22nd. The stock was sold at an average price of $116.17, for a total transaction of $12,868,267.07. Following the completion of the transaction, the executive vice president now owns 110,771 shares of the company’s stock, valued at approximately $12,868,267.07. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, insider Pierre R. Breber sold 23,250 shares of the business’s stock in a transaction on Thursday, November 30th. The stock was sold at an average price of $119.00, for a total value of $2,766,750.00. Following the sale, the insider now owns 42,182 shares in the company, valued at approximately $5,019,658. The disclosure for this sale can be found here. Insiders have sold a total of 287,271 shares of company stock valued at $33,335,800 in the last three months. 0.38% of the stock is owned by insiders.
A number of hedge funds have recently modified their holdings of the stock. First Republic Investment Management Inc. grew its position in shares of Chevron by 4.5% in the 4th quarter. First Republic Investment Management Inc. now owns 1,678,438 shares of the oil and gas company’s stock valued at $210,123,000 after buying an additional 71,894 shares during the last quarter. Mission Wealth Management LP boosted its position in shares of Chevron by 6.9% during the 4th quarter. Mission Wealth Management LP now owns 15,933 shares of the oil and gas company’s stock valued at $1,995,000 after purchasing an additional 1,031 shares in the last quarter. Alexandria Capital LLC boosted its position in shares of Chevron by 41.5% during the 4th quarter. Alexandria Capital LLC now owns 3,880 shares of the oil and gas company’s stock valued at $485,000 after purchasing an additional 1,138 shares in the last quarter. Private Wealth Advisors Inc. boosted its position in shares of Chevron by 13.0% during the 4th quarter. Private Wealth Advisors Inc. now owns 26,091 shares of the oil and gas company’s stock valued at $3,266,000 after purchasing an additional 2,999 shares in the last quarter. Finally, Dynamic Advisors Solutions LLC boosted its position in shares of Chevron by 89.0% during the 4th quarter. Dynamic Advisors Solutions LLC now owns 35,304 shares of the oil and gas company’s stock valued at $4,420,000 after purchasing an additional 16,622 shares in the last quarter. Institutional investors and hedge funds own 64.06% of the company’s stock.
Chevron Company Profile
Chevron Corporation (Chevron) manages its investments in subsidiaries and affiliates, and provides administrative, financial, management and technology support to the United States and international subsidiaries that engage in integrated energy and chemicals operations. The Company operates through two business segments: Upstream and Downstream.
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