Chevron Corp. (CVX) Downgraded by Zacks Investment Research to Hold
Chevron Corp. (NYSE:CVX) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.
According to Zacks, “Chevron is one of the largest integrated energy firms in the world with an impressive business model. Being one of the most oil-weighted majors, Chevron is poised to benefit from the recent OPEC deal and the subsequent advancement of crude oil. As it is, the company has been able to boost returns and remain competitive by embarking on aggressive cost reduction initiatives, exiting unprofitable markets and streamlining the organization. However, Chevron is still losing money from producing oil and gas, while the downstream segment is seeing its income erode on fuel oversupply and weak demand. Worse, Chevron is expected to be free-cash-flow negative this year too with profitability set to fall well short of spending. Considering these factors, we think that the current valuation is fair and adequately reflect the company's future growth prospects.”
A number of other equities analysts have also weighed in on CVX. Vetr lowered Chevron Corp. from a “buy” rating to a “hold” rating and set a $106.39 price target for the company. in a research report on Monday, June 27th. Credit Suisse Group AG reiterated a “neutral” rating and issued a $105.00 price target on shares of Chevron Corp. in a research report on Saturday, August 13th. Morgan Stanley reiterated a “hold” rating and issued a $85.00 price target on shares of Chevron Corp. in a research report on Wednesday, June 8th. Jefferies Group reiterated a “buy” rating on shares of Chevron Corp. in a research report on Friday, August 5th. Finally, Simmons upgraded Chevron Corp. from a “neutral” rating to an “overweight” rating and increased their price target for the company from $110.00 to $117.00 in a research report on Tuesday, August 9th. Twelve research analysts have rated the stock with a hold rating, nineteen have issued a buy rating and one has given a strong buy rating to the company’s stock. The stock has a consensus rating of “Buy” and an average price target of $105.53.
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Chevron Corp. (NYSE:CVX) traded up 0.09% during mid-day trading on Wednesday, reaching $102.27. 5,844,492 shares of the company were exchanged. Chevron Corp. has a 12 month low of $75.33 and a 12 month high of $107.58. The stock’s 50-day moving average is $100.97 and its 200-day moving average is $101.05. The company’s market cap is $192.93 billion.
Chevron Corp. (NYSE:CVX) last announced its earnings results on Friday, July 29th. The company reported ($0.78) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.32 by $1.10. Chevron Corp. had a negative net margin of 0.64% and a positive return on equity of 1.07%. The firm had revenue of $29.28 billion for the quarter, compared to the consensus estimate of $25.78 billion. During the same period in the prior year, the business earned $0.30 EPS. The company’s quarterly revenue was down 27.4% compared to the same quarter last year. Equities analysts expect that Chevron Corp. will post $1.31 earnings per share for the current year.
The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 12th. Shareholders of record on Friday, August 19th were given a $1.07 dividend. The ex-dividend date of this dividend was Wednesday, August 17th. This represents a $4.28 annualized dividend and a yield of 4.19%. Chevron Corp.’s payout ratio is -1,097.44%.
In other news, Director Inge G. Thulin bought 487 shares of the company’s stock in a transaction dated Monday, August 15th. The stock was bought at an average price of $102.87 per share, for a total transaction of $50,097.69. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Michael K. Wirth sold 125,000 shares of the business’s stock in a transaction on Monday, August 1st. The stock was sold at an average price of $100.47, for a total value of $12,558,750.00. Following the sale, the insider now owns 4,222 shares of the company’s stock, valued at approximately $424,184.34. The disclosure for this sale can be found here. 0.40% of the stock is owned by company insiders.
Several large investors have recently added to or reduced their stakes in the company. TNB Financial increased its stake in Chevron Corp. by 6.6% in the first quarter. TNB Financial now owns 11,485 shares of the company’s stock worth $1,096,000 after buying an additional 711 shares during the last quarter. Donald L. Hagan LLC increased its stake in Chevron Corp. by 214.8% in the first quarter. Donald L. Hagan LLC now owns 9,333 shares of the company’s stock worth $890,000 after buying an additional 6,368 shares in the last quarter. Capital City Trust Co. FL increased its stake in Chevron Corp. by 23.9% in the first quarter. Capital City Trust Co. FL now owns 25,965 shares of the company’s stock worth $2,477,000 after buying an additional 5,002 shares in the last quarter. Burke & Herbert Bank & Trust Co. increased its stake in Chevron Corp. by 2.9% in the first quarter. Burke & Herbert Bank & Trust Co. now owns 21,751 shares of the company’s stock worth $2,075,000 after buying an additional 611 shares in the last quarter. Finally, Capital Investment Advisors LLC increased its stake in Chevron Corp. by 2.2% in the first quarter. Capital Investment Advisors LLC now owns 42,357 shares of the company’s stock worth $4,041,000 after buying an additional 915 shares in the last quarter. Institutional investors own 62.24% of the company’s stock.
Chevron Corp. 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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