Chevron (CVX) Upgraded by Zacks Investment Research to Buy
Zacks Investment Research upgraded shares of Chevron (NYSE:CVX) from a hold rating to a buy rating in a research report sent to investors on Wednesday morning. The firm currently has $140.00 target price on the oil and gas company’s stock.
According to Zacks, “Following outperformance in 3 of the last 4 quarters, shares of Chevron have risen 11.1% in the past year, outperforming the broader industry's 11%, while larger rival ExxonMobil has seen its scrip go down 2.6% over the same time period. The second-largest U.S. oil producer have been a beneficiary of the recovery in commodity prices and robust refining profits. More 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. Moreover, with increasing amounts of capital spending devoted to the lucrative Permian basin over the coming years, production from the region is expected to be strong. Consequently, we think Chevron offers substantial upside potential from the current price levels and view it as a preferred energy play to own now.”
A number of other brokerages have also recently issued reports on CVX. Jefferies Group restated a buy rating and issued a $137.00 price objective (up previously from $113.54) on shares of Chevron in a research note on Monday, October 30th. Citigroup increased their price objective on shares of Chevron from $118.00 to $128.00 and gave the company a buy rating in a research note on Monday, October 30th. Goldman Sachs Group restated a buy rating and issued a $123.00 price objective (up previously from $118.00) on shares of Chevron in a research note on Tuesday, September 19th. Wolfe Research upgraded shares of Chevron from a market perform rating to an outperform rating in a research note on Monday, October 16th. Finally, Scotiabank restated a buy rating on shares of Chevron in a research note on Friday, September 15th. Three equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and sixteen have assigned a buy rating to the company. The company presently has an average rating of Hold and an average price target of $125.15.
Chevron (NYSE:CVX) last released its earnings results on Friday, October 27th. The oil and gas company reported $1.03 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.99 by $0.04. Chevron had a net margin of 4.79% and a return on equity of 4.59%. The firm had revenue of $36.21 billion during the quarter, compared to analysts’ expectations of $34.06 billion. During the same period in the prior year, the company earned $0.68 EPS. The business’s quarterly revenue was up 20.1% compared to the same quarter last year. equities analysts predict that Chevron will post 4.33 earnings per share for the current year.
The company also recently announced a quarterly dividend, which was paid on Monday, December 11th. Investors of record on Friday, November 17th were given a dividend of $1.08 per share. This represents a $4.32 dividend on an annualized basis and a dividend yield of 3.44%. The ex-dividend date was Thursday, November 16th. Chevron’s dividend payout ratio (DPR) is currently 125.95%.
In other Chevron news, VP R. Hewitt Pate sold 25,500 shares of the stock in a transaction dated Monday, October 16th. The shares were sold at an average price of $120.00, for a total transaction of $3,060,000.00. Following the sale, the vice president now owns 25,500 shares of the company’s stock, valued at approximately $3,060,000. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Pierre R. Breber sold 23,250 shares of the stock in a transaction dated Monday, November 13th. The stock was sold at an average price of $116.85, for a total transaction of $2,716,762.50. The disclosure for this sale can be found here. Insiders have sold a total of 314,000 shares of company stock valued at $36,540,822 in the last quarter. 0.38% of the stock is currently owned by corporate insiders.
Large investors have recently modified their holdings of the business. Atlantic Trust Group LLC boosted its position in Chevron by 8.7% during the third quarter. Atlantic Trust Group LLC now owns 464,115 shares of the oil and gas company’s stock worth $54,534,000 after purchasing an additional 36,960 shares during the period. AustralianSuper Pty Ltd bought a new position in Chevron during the third quarter worth $98,077,000. Parametric Portfolio Associates LLC boosted its position in Chevron by 1.4% during the third quarter. Parametric Portfolio Associates LLC now owns 5,304,379 shares of the oil and gas company’s stock worth $623,265,000 after purchasing an additional 74,650 shares during the period. Barrow Hanley Mewhinney & Strauss LLC boosted its position in Chevron by 9.1% during the third quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 7,631,817 shares of the oil and gas company’s stock worth $896,738,000 after purchasing an additional 638,516 shares during the period. Finally, Institutional & Family Asset Management LLC boosted its position in Chevron by 2.9% during the third quarter. Institutional & Family Asset Management LLC now owns 37,714 shares of the oil and gas company’s stock worth $4,431,000 after purchasing an additional 1,064 shares during the period. 63.80% of the stock is currently owned by hedge funds and other institutional investors.
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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