Zacks Investment Research Downgrades Chevron (CVX) to Hold

Chevron (NYSE:CVX) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued on Wednesday.

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.”

Several other research firms also recently commented on CVX. Vetr downgraded shares of Chevron from a “buy” rating to a “hold” rating and set a $134.35 price objective on the stock. in a report on Thursday, January 11th. BMO Capital Markets raised shares of Chevron from a “market perform” rating to an “outperform” rating and upped their price objective for the company from $120.00 to $140.00 in a report on Thursday, January 11th. Bank of America cut shares of Chevron from a “buy” rating to a “neutral” rating and set a $125.00 target price for the company. in a research note on Thursday, January 4th. They noted that the move was a valuation call. Scotiabank reiterated a “buy” rating and issued a $130.00 target price on shares of Chevron in a research note on Friday, December 22nd. Finally, Jefferies Group reiterated a “buy” rating and issued a $140.00 target price on shares of Chevron in a research note on Wednesday, December 20th. Three research analysts have rated the stock with a sell rating, ten have issued a hold rating and fourteen have issued a buy rating to the stock. The company currently has an average rating of “Hold” and a consensus target price of $126.06.

Shares of Chevron (CVX) opened at $132.01 on Wednesday. The company has a market cap of $250,740.00, a price-to-earnings ratio of 38.49, a PEG ratio of 2.95 and a beta of 1.21. The company has a quick ratio of 0.84, a current ratio of 1.04 and a debt-to-equity ratio of 0.23. Chevron has a twelve month low of $102.55 and a twelve month high of $133.88.

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

In other Chevron news, Vice Chairman Michael K. Wirth sold 1,229 shares of the company’s stock in a transaction on Tuesday, November 7th. The shares were sold at an average price of $118.00, for a total transaction of $145,022.00. Following the completion of the transaction, the insider now directly owns 1,229 shares in the company, valued at $145,022. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Pierre R. Breber sold 23,250 shares of the company’s stock in a transaction on 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 288,500 shares of company stock valued at $33,480,822 over the last 90 days. 0.38% of the stock is currently owned by company insiders.

A number of large investors have recently bought and sold shares of the business. Shine Investment Advisory Services Inc. purchased a new stake in shares of Chevron during the second quarter worth $106,000. Winfield Associates Inc. grew its holdings in shares of Chevron by 5.1% during the second quarter. Winfield Associates Inc. now owns 1,301 shares of the oil and gas company’s stock worth $136,000 after buying an additional 63 shares in the last quarter. Daiwa SB Investments Ltd. grew its holdings in shares of Chevron by 438.5% during the second quarter. Daiwa SB Investments Ltd. now owns 1,400 shares of the oil and gas company’s stock worth $146,000 after buying an additional 1,140 shares in the last quarter. Acrospire Investment Management LLC grew its holdings in shares of Chevron by 133.3% during the second quarter. Acrospire Investment Management LLC now owns 1,400 shares of the oil and gas company’s stock worth $146,000 after buying an additional 800 shares in the last quarter. Finally, Accurate Investment Solutions Inc. grew its holdings in shares of Chevron by 59.1% during the third quarter. Accurate Investment Solutions Inc. now owns 1,352 shares of the oil and gas company’s stock worth $159,000 after buying an additional 502 shares in the last quarter. Institutional investors own 63.84% of the company’s stock.

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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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