Chevron (CVX) Raised to “Buy” at Zacks Investment Research

Chevron (NYSE:CVX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Wednesday. The firm presently has a $140.00 target price on the oil and gas company’s stock. Zacks Investment Research‘s target price would indicate a potential upside of 11.13% from the company’s previous close.

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.”

Several other equities research analysts have also recently issued reports on CVX. Jefferies Group set a $130.00 price objective on shares of Chevron and gave the stock a “buy” rating in a research report on Tuesday, August 29th. UBS Group set a $105.00 price objective on shares of Chevron and gave the stock a “neutral” rating in a research report on Wednesday, September 6th. Scotiabank reaffirmed a “buy” rating on shares of Chevron in a research note on Friday, September 15th. JPMorgan Chase & Co. reaffirmed an “overweight” rating on shares of Chevron in a research note on Saturday, September 16th. Finally, Cowen reaffirmed a “buy” rating and set a $122.00 target price on shares of Chevron in a research note on Tuesday, September 19th. Three research analysts have rated the stock with a sell rating, eight have assigned a hold rating and sixteen have given a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus price target of $125.15.

Shares of Chevron (NYSE:CVX) opened at $125.98 on Wednesday. The company has a market cap of $239,280.00, a PE ratio of 36.73, a PEG ratio of 4.12 and a beta of 1.21. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.04 and a quick ratio of 0.84. Chevron has a 12-month low of $102.55 and a 12-month high of $126.14.

Chevron (NYSE:CVX) last released its quarterly earnings data on Friday, October 27th. The oil and gas company reported $1.03 earnings per share (EPS) for the quarter, topping 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 last year, the business earned $0.68 earnings per share. Chevron’s revenue was up 20.1% compared to the same quarter last year. sell-side analysts anticipate that Chevron will post 4.33 EPS for the current fiscal year.

In related news, VP R. Hewitt Pate sold 25,500 shares of Chevron stock in a transaction that occurred on Monday, October 16th. The shares were sold at an average price of $120.00, for a total value of $3,060,000.00. Following the completion of the transaction, the vice president now owns 25,500 shares in the company, valued at $3,060,000. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Pierre R. Breber sold 23,250 shares of Chevron stock in a transaction that occurred on Thursday, November 30th. The stock was sold at an average price of $119.00, for a total transaction of $2,766,750.00. Following the completion of the transaction, the insider now owns 42,182 shares of the company’s stock, valued at approximately $5,019,658. The disclosure for this sale can be found here. Insiders sold 314,000 shares of company stock valued at $36,540,822 in the last quarter. 0.38% of the stock is owned by insiders.

A number of institutional investors have recently modified their holdings of CVX. Vanguard Group Inc. raised its holdings in Chevron by 2.9% during the second quarter. Vanguard Group Inc. now owns 139,626,287 shares of the oil and gas company’s stock worth $14,567,210,000 after purchasing an additional 3,920,240 shares in the last quarter. BlackRock Inc. increased its holdings in shares of Chevron by 1.6% in the 2nd quarter. BlackRock Inc. now owns 124,678,992 shares of the oil and gas company’s stock valued at $13,007,759,000 after acquiring an additional 1,975,865 shares during the period. Capital World Investors increased its holdings in shares of Chevron by 9.8% in the 2nd quarter. Capital World Investors now owns 35,546,848 shares of the oil and gas company’s stock valued at $3,708,603,000 after acquiring an additional 3,182,250 shares during the period. Northern Trust Corp increased its holdings in shares of Chevron by 0.6% in the 2nd quarter. Northern Trust Corp now owns 26,153,161 shares of the oil and gas company’s stock valued at $2,728,558,000 after acquiring an additional 157,021 shares during the period. Finally, Franklin Resources Inc. increased its holdings in shares of Chevron by 0.3% in the 2nd quarter. Franklin Resources Inc. now owns 15,609,647 shares of the oil and gas company’s stock valued at $1,628,554,000 after acquiring an additional 49,083 shares during the period. Institutional investors own 63.80% 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.

Analyst Recommendations for Chevron (NYSE:CVX)

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