Chevron (NYSE:CVX) Shares Down 2.7% – Here’s What Happened

Shares of Chevron Corporation (NYSE:CVX) were down 2.7% during mid-day trading on Monday . The company traded as low as $203.50 and last traded at $203.76. Approximately 8,449,117 shares changed hands during mid-day trading, a decline of 21% from the average session volume of 10,726,331 shares. The stock had previously closed at $209.51.

Key Stories Impacting Chevron

Here are the key news stories impacting Chevron this week:

• Positive Sentiment: Chevron is reportedly planning to more than double the number of rigs it operates in Venezuela as part of a five-year effort to increase production. Venezuelan crude imports into the U.S. recently reached a nine-year high, potentially giving Chevron—one of the few U.S. companies operating there—greater access to attractive production growth. Chevron Supercharges its Venezuela Bet with More Oil Rigs
• Positive Sentiment: At the Gastech conference, Chevron and ExxonMobil emphasized expectations for continued long-term LNG demand. This supports Chevron’s strategy of expanding its natural-gas and LNG exposure, although the benefits are primarily longer term. Chevron and ExxonMobil Double Down on LNG
• Neutral Sentiment: Broader markets are being supported by optimism over U.S.-China discussions and upcoming high-level meetings. However, the macroeconomic and geopolitical implications for Chevron remain uncertain and do not appear to be the main driver of the stock’s move. Stock Market Today
• Neutral Sentiment: Recent commentary from Chevron’s leadership has highlighted the importance of oil prices to the economy and the company’s outlook. Analysts continue to frame the stock’s longer-term case around production growth, dividends and the possibility of stronger commodity prices. Chevron CEO Sends a Strong Message on Oil Price and the Economy
• Negative Sentiment: Global crude oil prices continued to decline, creating near-term pressure on Chevron’s realized prices, cash flow and upstream profitability. This commodity-price headwind is the clearest explanation for CVX underperforming while the major U.S. equity indexes advance. Why Is Chevron Stock Falling on Monday?

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on CVX. UBS Group reiterated a “buy” rating on shares of Chevron in a research report on Tuesday, June 23rd. Weiss Ratings upgraded shares of Chevron from a “hold (c)” rating to a “buy (b)” rating in a research note on Tuesday, August 11th. Morgan Stanley lifted their price objective on Chevron from $210.00 to $218.00 and gave the company an “overweight” rating in a report on Wednesday, August 19th. Dbs Bank upgraded Chevron to a “moderate buy” rating in a research note on Thursday, August 6th. Finally, BMO Capital Markets increased their target price on Chevron from $210.00 to $235.00 and gave the stock an “outperform” rating in a report on Thursday, September 3rd. Twenty investment 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. According to data from MarketBeat, Chevron has an average rating of “Moderate Buy” and an average target price of $211.35.

Chevron Stock Performance

The firm has a market capitalization of $402.58 billion, a P/E ratio of 19.54, a price-to-earnings-growth ratio of 0.61 and a beta of 0.50. The stock has a 50-day moving average of $199.40 and a 200 day moving average of $191.75. The company has a debt-to-equity ratio of 0.19, a quick ratio of 0.98 and a current ratio of 1.25.

Chevron (NYSE:CVX) last issued its quarterly earnings data on Friday, July 31st. The oil and gas company reported $6.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.55 by $0.51. The firm had revenue of $67.20 billion during the quarter, compared to the consensus estimate of $62.72 billion. Chevron had a return on equity of 11.09% and a net margin of 9.57%.The business’s revenue for the quarter was up 57.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.77 EPS. On average, research analysts anticipate that Chevron Corporation will post 16.51 earnings per share for the current year.

Chevron Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Wednesday, August 19th were issued a $1.78 dividend. This represents a $7.12 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date of this dividend was Wednesday, August 19th. Chevron’s payout ratio is currently 68.26%.

Insider Activity at Chevron

In other Chevron news, insider R. Pate sold 2,470 shares of the business’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $205.11, for a total value of $506,621.70. Following the completion of the transaction, the insider directly owned 10,794 shares of the company’s stock, valued at approximately $2,213,957.34. The trade was a 18.62% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Andrew Walz sold 16,800 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $201.06, for a total transaction of $3,377,808.00. Following the transaction, the insider owned 14 shares in the company, valued at $2,814.84. The trade was a 99.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,152,582 shares of company stock worth $225,853,661 in the last 90 days. Corporate insiders own 0.56% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of CVX. BlackRock Inc. bought a new position in Chevron in the 2nd quarter valued at $25,663,729,000. Norges Bank acquired a new stake in shares of Chevron in the 4th quarter valued at $3,727,586,000. Bank of New York Mellon Corp bought a new stake in shares of Chevron during the second quarter worth $2,378,114,000. Legal & General Group Plc bought a new stake in shares of Chevron during the second quarter worth $1,462,412,000. Finally, Berkshire Hathaway Inc lifted its stake in shares of 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 acquiring an additional 8,091,570 shares during the period. 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.