Chevron (NYSE:CVX) Shares Dip 1% - What This Means for Investors

Chevron Co. (NYSE:CVX) saw a decline of 1% in its stock price during Thursday's trading session. The shares dropped to a low of $154.40 before closing at $154.61. A total of 1,836,135 shares were exchanged in the market, significantly lower than the average volume of 7,655,533 shares, marking a 76% decrease from typical trading conditions. The previous day's closing price was $156.21.

Analysts Outlook on Chevron's Growth

Analysts on Wall Street have varied opinions about Chevron's future performance. Mizuho recently lowered their price target for Chevron from $205.00 to $189.00 and affirmed an "outperform" rating for the stock. In a note released on October 17th, Bank of America gave Chevron a "buy" rating with a price target set at $168.00. Citigroup also upscaled their rating from "neutral" to "buy" and raised their price expectation from $145.00 to $185.00. Barclays increased their target price from $168.00 to $174.00 while maintaining an "overweight" rating. Moreover, Royal Bank of Canada raised its price target from $170.00 to $175.00, repeating an "outperform" rating. Overall, four analysts rate it as a hold, while fourteen recommend it as a buy, leading to an average rating of "Moderate Buy" with a target price of $177.13.

Performance and Financial Indicators

Chevron maintains a quick ratio of 0.80, a current ratio of 1.07, and a solid debt-to-equity ratio of 0.13. The stock's 50-day moving average sits at $155.22, while the 200-day average is $152.44. With a market capitalization of $278.33 billion, the company has a price-to-earnings (P/E) ratio of 16.99 and a price-to-earnings-growth (PEG) ratio of 3.47, indicating its valuation relative to growth expectations.

In its latest quarterly earnings report released on November 1st, Chevron reported earnings per share (EPS) of $2.51, surpassing analyst expectations of $2.47 by $0.04. The company generated revenue of $50.67 billion against anticipated revenues of $48.86 billion. Although the net margin was 8.44% with a return on equity of 13.15%, revenues fell by 6.3% compared to the same period last year, where EPS was $3.05. Analysts predict Chevron will provide a total EPS of 10.54 for the current fiscal year.

Dividend Payment Information

Chevron recently declared a quarterly dividend, which was disbursed on December 10th. Investors eligible by November 18th received $1.63 per share, reflecting an annualized dividend of $6.52 and a yield of 4.21%. The ex-dividend date for this payment was November 18th. Currently, Chevron has a dividend payout ratio of 71.65%.

Insider Transactions at Chevron

Recently, CEO Michael K. Wirth sold 164,600 shares of Chevron stock on November 14th at an average price of $160.13, totaling $26,357,398. Following this sale, he holds approximately 4,280 shares valued at around $685,356. This was a significant decrease of 97.47% in his holding. The transaction details were carefully filed with the SEC. Notably, insiders possess only 0.20% of Chevron’s stock.

Institutional Shareholder Actions

Institutional investors have also rearranged their positions in Chevron. In the third quarter, State Street Corp boosted its shareholding in Chevron by 0.6%, owning 159,105,244 shares valued at $23.43 billion after acquiring an additional 874,962 shares. Similarly, Charles Schwab Investment Management Inc. raised its stake by 11.5%, owning 31,108,760 shares valued at $4.58 billion after an increase of 3,203,899 shares. Fisher Asset Management LLC also added 672,244 shares, increasing their total share count to 19,482,388, valued at $2.87 billion. Franklin Resources Inc. and Ameriprise Financial Inc. similarly increased their stakes during the same period. Institutional investors now comprise 72.42% of Chevron's total ownership.

About Chevron Corporation

Chevron Corporation engages in various energy and chemical operations globally through its subsidiaries. The company operates in two main segments, Upstream and Downstream. The Upstream division focuses on discovering, developing, producing, and transporting crude oil and natural gas, including the processing and liquefaction of liquefied natural gas (LNG). The Downstream segment is responsible for refining and marketing the products resulting from these operations.

Should You Sell Chevron Shares?

Given the recent fluctuations and ongoing analyst discussions, potential investors may be wondering about the advisability of holding or selling Chevron shares. There are indications of optimism in the oil sector, but recent performance highlights some challenges. Before making a decision, investors should consider these factors carefully.

Chevron, Stocks, Investing