Zacks Investment Research Lowers Chevron (CVX) to Hold

Zacks Investment Research cut shares of Chevron (NYSE:CVX) from a strong-buy rating to a hold rating in a report published on Wednesday morning.

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.”

A number of other brokerages have also recently commented on CVX. Jefferies Group reaffirmed a buy rating and issued a $137.00 price target (up from $113.54) on shares of Chevron in a research note on Monday, October 30th. Citigroup lifted their price target on Chevron from $118.00 to $128.00 and gave the stock a buy rating in a research note on Monday, October 30th. Goldman Sachs Group reaffirmed a buy rating and issued a $123.00 price target (up from $118.00) on shares of Chevron in a research note on Tuesday, September 19th. Wolfe Research raised Chevron from a market perform rating to an outperform rating in a research note on Monday, October 16th. Finally, Scotiabank reissued a buy rating and set a $130.00 target price on shares of Chevron in a research note on Friday, December 22nd. Three equities research analysts have rated the stock with a sell rating, eleven have issued a hold rating and fourteen have issued a buy rating to the company’s stock. Chevron has a consensus rating of Hold and a consensus price target of $126.06.

Shares of Chevron (CVX) traded down $0.29 during trading on Wednesday, reaching $131.30. The company’s stock had a trading volume of 6,050,000 shares, compared to its average volume of 5,420,000. The company has a quick ratio of 0.84, a current ratio of 1.04 and a debt-to-equity ratio of 0.23. The stock has a market cap of $249,390.00, a PE ratio of 38.28, a P/E/G ratio of 2.83 and a beta of 1.21. Chevron has a 1-year low of $102.55 and a 1-year high of $133.88.

Chevron (NYSE:CVX) last announced its quarterly earnings results on Friday, October 27th. The oil and gas company reported $1.03 EPS for the quarter, topping the Zacks’ consensus estimate of $0.99 by $0.04. The business had revenue of $36.21 billion for the quarter, compared to analysts’ expectations of $34.06 billion. Chevron had a return on equity of 4.59% and a net margin of 4.79%. The business’s quarterly revenue was up 20.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.68 EPS. sell-side analysts forecast that Chevron will post 4.35 earnings per share for the current year.

In related news, CFO Patricia E. Yarrington sold 13,143 shares of the company’s stock in a transaction on Thursday, November 16th. The stock was sold at an average price of $115.01, for a total value of $1,511,576.43. Following the sale, the chief financial officer now directly owns 17,981 shares of the company’s stock, valued at $2,067,994.81. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Vice Chairman Michael K. Wirth sold 1,229 shares of the company’s stock in a transaction on Tuesday, November 7th. The stock was sold at an average price of $118.00, for a total value of $145,022.00. Following the completion of the sale, the insider now directly owns 1,229 shares in the company, valued at $145,022. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 288,500 shares of company stock worth $33,480,822. 0.38% of the stock is owned by insiders.

Hedge funds have recently modified their holdings of the stock. Harbour Capital Advisors LLC boosted its holdings in Chevron by 10,213.3% in the second quarter. Harbour Capital Advisors LLC now owns 5,709,042 shares of the oil and gas company’s stock worth $54,721,000 after acquiring an additional 5,653,686 shares in the last quarter. Vanguard Group Inc. boosted its holdings in Chevron by 2.9% in the second quarter. Vanguard Group Inc. now owns 139,626,287 shares of the oil and gas company’s stock worth $14,567,210,000 after acquiring an additional 3,920,240 shares in the last quarter. Capital World Investors boosted its holdings in Chevron by 9.8% in the second quarter. Capital World Investors now owns 35,546,848 shares of the oil and gas company’s stock worth $3,708,603,000 after acquiring an additional 3,182,250 shares in the last quarter. Janus Henderson Group PLC boosted its holdings in Chevron by 669.9% in the second quarter. Janus Henderson Group PLC now owns 3,230,554 shares of the oil and gas company’s stock worth $337,050,000 after acquiring an additional 2,810,928 shares in the last quarter. Finally, First Eagle Investment Management LLC boosted its holdings in Chevron by 305,886.4% in the third quarter. First Eagle Investment Management LLC now owns 2,613,124 shares of the oil and gas company’s stock worth $307,042,000 after acquiring an additional 2,612,270 shares in the last quarter. 63.84% of the stock is currently owned by institutional investors.

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About Chevron

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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