Chevron Corp. (CVX) Stock Rating Lowered by Zacks Investment Research
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 analysts have also recently commented on CVX. Morgan Stanley restated a “hold” rating and set a $85.00 target price on shares of Chevron Corp. in a report on Wednesday, June 8th. Vetr cut shares of Chevron Corp. from a “buy” rating to a “hold” rating and set a $106.39 target price on the stock. in a report on Monday, June 20th. Jefferies Group restated a “buy” rating and set a $116.00 target price (up previously from $114.00) on shares of Chevron Corp. in a report on Wednesday, July 6th. Barclays PLC restated an “equal weight” rating and set a $125.00 target price on shares of Chevron Corp. in a report on Thursday, July 28th. Finally, Piper Jaffray Cos. upgraded shares of Chevron Corp. from a “neutral” rating to an “overweight” rating and boosted their target price for the company from $110.00 to $117.00 in a report on Tuesday, August 9th. Twelve research analysts have rated the stock with a hold rating, nineteen have assigned a buy rating and one has issued a strong buy rating to the stock. Chevron Corp. has an average rating of “Buy” and an average target price of $105.53.
Shares of Chevron Corp. (NYSE:CVX) opened at 102.18 on Wednesday. Chevron Corp. has a 12-month low of $75.33 and a 12-month high of $107.58. The company’s 50-day moving average is $101.01 and its 200-day moving average is $101.01. The stock’s market cap is $192.76 billion.
Chevron Corp. (NYSE:CVX) last issued its quarterly earnings data on Friday, July 29th. The company reported ($0.78) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.32 by $1.10. The company had revenue of $29.28 billion for the quarter, compared to analysts’ expectations of $25.78 billion. Chevron Corp. had a negative net margin of 0.64% and a positive return on equity of 1.07%. The firm’s revenue for the quarter was down 27.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.30 earnings per share. On average, equities research analysts anticipate that Chevron Corp. will post $1.31 earnings per share for the current year.
The company also recently announced a quarterly dividend, which was paid on Monday, September 12th. Investors of record on Friday, August 19th were issued a $1.07 dividend. This represents a $4.28 annualized dividend and a yield of 4.19%. The ex-dividend date of this dividend was Wednesday, August 17th. Chevron Corp.’s dividend payout ratio is -1,097.44%.
In other Chevron Corp. news, insider Michael K. Wirth sold 125,000 shares of the company’s stock in a transaction that occurred 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 completion of the transaction, the insider now directly owns 4,222 shares in the company, valued at approximately $424,184.34. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Jeanette L. Ourada sold 7,000 shares of the company’s stock in a transaction that occurred on Thursday, August 25th. The stock was sold at an average price of $101.70, for a total value of $711,900.00. Following the completion of the transaction, the insider now owns 7,535 shares of the company’s stock, valued at $766,309.50. The disclosure for this sale can be found here. 0.40% of the stock is currently owned by corporate insiders.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Woodstock Corp increased its position in Chevron Corp. by 3.2% in the third quarter. Woodstock Corp now owns 6,461 shares of the company’s stock valued at $665,000 after buying an additional 201 shares during the last quarter. Independence Advisors LLC acquired a new position in Chevron Corp. during the third quarter valued at $462,000. Foundry Partners LLC increased its position in Chevron Corp. by 9.1% in the third quarter. Foundry Partners LLC now owns 214,920 shares of the company’s stock valued at $22,120,000 after buying an additional 18,000 shares during the last quarter. Stuart Chaussee & Associates Inc. increased its position in Chevron Corp. by 25.0% in the third quarter. Stuart Chaussee & Associates Inc. now owns 3,894 shares of the company’s stock valued at $401,000 after buying an additional 780 shares during the last quarter. Finally, F&V Capital Management LLC increased its position in Chevron Corp. by 3.3% in the third quarter. F&V Capital Management LLC now owns 33,217 shares of the company’s stock valued at $3,419,000 after buying an additional 1,060 shares during the last quarter. Institutional investors and hedge funds 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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