Chevron (NYSE:CVX) Downgraded to “Hold” at Zacks Investment Research

Zacks Investment Research cut shares of Chevron (NYSE:CVX) from a buy rating to a hold rating in a research report released on Tuesday, Zacks.com reports. They currently have $100.00 price target on the oil and gas company’s stock.

According to Zacks, “Shares of Chevron have risen 16.9% year to date, as the company's earnings and cash flows steadily improve on higher crude realizations and a recovery in consumption. In shareholder friendly moves, the integrated major recently hiked its dividend by 3.9% and revived the stock repurchase program. Chevron’s Noble Energy takeover has expanded its footprint in the DJ Basin and the Permian Basin along with the addition of cash-generating offshore assets in Israel. However, Chevron was not immune to last year’s price crash, forcing it to cut capital spending and increase long-term debt to fund its dividend. The company’s high oil price sensitivity is a concern too. Moreover, the supermajor’s reserve replacement ratio of 74% is indicative of its inability to add reserves to replace the amount of oil and gas produced.”

Several other research firms have also commented on CVX. DZ Bank lowered shares of Chevron from a buy rating to a hold rating and set a $110.00 price objective for the company. in a research note on Wednesday, August 4th. Piper Sandler lifted their target price on Chevron from $126.00 to $137.00 and gave the stock an overweight rating in a research report on Friday, July 23rd. They noted that the move was a valuation call. Wells Fargo & Company decreased their price objective on Chevron from $110.00 to $107.00 and set an equal weight rating for the company in a report on Wednesday, September 15th. Royal Bank of Canada decreased their price objective on Chevron from $135.00 to $130.00 and set a sector perform rating for the company in a report on Wednesday, August 25th. Finally, BMO Capital Markets began coverage on Chevron in a report on Monday, July 12th. They issued an outperform rating and a $123.00 price objective for the company. Twelve equities research analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of Buy and a consensus target price of $117.64.

NYSE CVX opened at $94.85 on Tuesday. The company has a quick ratio of 0.95, a current ratio of 1.17 and a debt-to-equity ratio of 0.30. The company has a fifty day moving average of $98.75 and a two-hundred day moving average of $103.27. The firm has a market capitalization of $183.43 billion, a price-to-earnings ratio of 50.72, a PEG ratio of 2.85 and a beta of 1.32. Chevron has a 52 week low of $65.16 and a 52 week high of $113.11.

Chevron (NYSE:CVX) last posted its quarterly earnings data on Thursday, July 29th. The oil and gas company reported $1.71 EPS for the quarter, topping the consensus estimate of $1.59 by $0.12. The company had revenue of $37.60 billion during the quarter, compared to analyst estimates of $35.98 billion. Chevron had a net margin of 3.01% and a return on equity of 3.89%. Chevron’s quarterly revenue was up 169.5% compared to the same quarter last year. During the same period in the previous year, the firm earned ($1.59) earnings per share. Equities research analysts anticipate that Chevron will post 6.74 EPS for the current year.

The company also recently announced a quarterly dividend, which was paid on Friday, September 10th. Investors of record on Thursday, August 19th were given a $1.34 dividend. The ex-dividend date of this dividend was Wednesday, August 18th. This represents a $5.36 dividend on an annualized basis and a yield of 5.65%. Chevron’s dividend payout ratio is currently -2,680.00%.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its position in Chevron by 3.5% in the second quarter. Vanguard Group Inc. now owns 161,501,973 shares of the oil and gas company’s stock valued at $16,915,716,000 after buying an additional 5,427,422 shares during the last quarter. State Street Corp boosted its position in Chevron by 1.3% in the second quarter. State Street Corp now owns 139,640,367 shares of the oil and gas company’s stock valued at $14,625,932,000 after buying an additional 1,844,030 shares during the last quarter. BlackRock Inc. boosted its position in Chevron by 3.3% in the second quarter. BlackRock Inc. now owns 136,355,706 shares of the oil and gas company’s stock valued at $14,281,898,000 after buying an additional 4,339,477 shares during the last quarter. Capital International Investors boosted its position in Chevron by 0.7% in the first quarter. Capital International Investors now owns 38,439,497 shares of the oil and gas company’s stock valued at $4,028,498,000 after buying an additional 252,442 shares during the last quarter. Finally, Geode Capital Management LLC boosted its position in Chevron by 1.8% in the second quarter. Geode Capital Management LLC now owns 30,544,480 shares of the oil and gas company’s stock valued at $3,190,395,000 after buying an additional 537,762 shares during the last quarter. Hedge funds and other institutional investors own 65.78% of the company’s stock.

Chevron Company Profile

Chevron Corp. engages in the provision of administrative, financial management, and technology support for energy and chemical operations. It operates through the Upstream and Downstream segments. The Upstream segment consists of exploration, development, and production of crude oil and natural gas; liquefaction, transportation, and regasification associated with liquefied natural gas; transporting crude oil by major international oil export pipelines; processing, transporting, storage, and marketing of natural gas; and a gas-to-liquids plant.

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