Key Takeaways
- Cramer advocates maintaining CVX positions, highlighting the 3.85% dividend yield and company reliability
- Latest quarter showed EPS of $1.52, exceeding forecasts by $0.08, while revenue declined 10.2% annually
- Company boosted quarterly dividend payment to $1.78 per share, totaling $7.12 annually (~3.8% yield)
- Institutional investors expanded holdings across the board; institutions now control 72.42% of shares
- Company executives sold $89.5M in shares during recent quarter; analyst ratings average at “Hold” with $176.36 target
Chevron (CVX) has captured significant attention across investment communities as shares rose 1.3% to begin trading at $186.47 Friday morning — approaching the 52-week peak of $187.90.
During a recent broadcast segment, Jim Cramer advised a viewer to maintain their Chevron holdings. “I think it can go up a lot,” Cramer remarked, emphasizing the dividend yield alongside Chevron’s track record of “consistency.”
Cramer highlighted Chevron’s Venezuela operations as a potential catalyst, calling it a “kicker” that could drive future gains.
Quarterly Dividend Sees Increase
Chevron elevated its quarterly dividend distribution from $1.71 to $1.78 per share. The annual total reaches $7.12 — delivering approximately 3.8% in yield. Shareholders recorded by February 17 will receive payments on March 10.
The company maintains a dividend payout ratio of 106.91%, indicating dividend payments currently exceed earnings — a metric investors should monitor.
Revenue Falls Short While EPS Exceeds Projections
Chevron’s quarterly results released January 30 showed EPS reaching $1.52, surpassing the $1.44 analyst consensus. Revenue totaled $45.79 billion, falling short of the $48.18 billion projection and representing a 10.2% decline year-over-year.
The company recorded a 6.51% net margin with 7.89% return on equity. Full-year EPS projections stand at $10.79.
The year-over-year earnings comparison reveals significant contraction — the company reported $2.06 EPS during the corresponding quarter last year.
Institutional Investment Activity Accelerates
Multiple institutional investors expanded their CVX holdings during Q3. Trivium Point Advisory LLC increased its position by 73.9%, acquiring 6,855 additional shares to reach 16,131 units valued at approximately $2.5 million.
American Century Companies led institutional purchases, adding 810,086 shares — representing a 45.6% position increase — for a total of 2,586,278 shares worth roughly $401.6 million.
Berkshire Hathaway expanded its Chevron stake following Warren Buffett’s departure from active leadership.
Institutional ownership has reached 72.42% of total shares.
Insiders Heading for the Exits
Meanwhile, company insiders pursued sales activity. During the previous quarter, insiders sold 534,898 shares totaling $89.5 million.
Vice Chairman Mark A. Nelson divested 45,800 shares on February 2 at $174.17 average price, decreasing his holdings by 86.48%. Insider Andrew Benjamin Walz sold 1,463 shares on February 18 at $183.83.
Current insider ownership represents just 0.21% of outstanding shares.
Analyst Perspectives Vary
Wall Street opinions demonstrate divergence. UBS maintains a buy rating with a $212 price objective. BMO Capital Markets continues its outperform rating with a $190 target. JPMorgan elevated CVX from neutral to overweight with a $176 price goal.
Conversely, DCF valuation analysis suggests CVX trades at approximately 30% above fair value, estimating intrinsic worth around $126.
Consensus among 24 analysts settles at “Hold” with an average price target of $176.36 — beneath current trading levels.
CVX trades above its 50-day moving average of $169.52 and its 200-day average of $159.57. The company carries a $372 billion market capitalization, PE ratio of 28, and beta of 0.70.
