Chevron Co. (NYSE:CVX) Shares Bought by Red Door Wealth Management LLC

Red Door Wealth Management LLC significantly increased its position in Chevron Corp (NYSE: CVX) during the fourth quarter of 2022, acquiring an additional 9,860 shares. As a result, the institutional investor now holds 46,963 shares of the oil and gas company, making Chevron its 18th largest holding with a value of $7,005,000 at the end of the reporting period.

Why Did Red Door Wealth Amplify Its Chevron Holdings?

Red Door Wealth Management LLC has significantly increased its stake in Chevron Co. (NYSE: CVX), reflecting its bullish outlook on the oil and gas giant. The firm boosted its holdings by 26.6%, acquiring 9,860 additional shares during the fourth quarter, making Chevron its 18th largest position, representing 1.5% of its portfolio and valued at $7,005,000 as of the end of the quarter.

Other Institutional Investors Join the Chevron Bandwagon

Red Door Wealth is not alone in its positive sentiment towards Chevron. A host of other hedge funds and institutional investors have also recently adjusted their positions, suggesting broad-based optimism within the financial community. Addison Capital Co. increased its stake by 1.9% in the second quarter, NCM Capital Management LLC lifted its holding by 1.2% in the first quarter, Sweet Financial Partners LLC raised its stake by 0.7% in the third quarter, and Strategic Investment Advisors MI and Alera Investment Advisors LLC both increased their investments by 3.8% and 1.0%, respectively, in the third quarter. This collective buying spree highlights the growing institutional confidence in Chevron's prospects.

Institutional Ownership Dominates Chevron's Shareholder Base

Institutional investors have a significant presence in Chevron, accounting for 72.42% of its outstanding shares. This high level of institutional ownership provides a stable base of support for the company and its long-term growth strategy.

Chevron's Technical Analysis: A Mixed Bag

Chevron's share price has fluctuated in recent trading sessions, closing at $155.31 on Tuesday, representing a 0.7% decline. The stock's volume was above average, indicating a moderate level of investor activity. Technically, Chevron's 50-day moving average stands at $151.11, while its 200-day moving average is $152.73. The stock's beta of 1.12 suggests that it is slightly more volatile than the broader market.

Chevron's Financial Performance: Earnings Beat, Revenue Miss

Chevron recently released its quarterly earnings results, beating analyst estimates for earnings per share but falling short on revenue expectations. The company reported earnings of $3.45 per share, surpassing the consensus forecast of $3.19, but its revenue of $47.18 billion trailed analysts' projections of $50.93 billion. Despite the revenue shortfall, Chevron's net margin remained strong at 10.63%, and its return on equity came in at 15.24%.

Chevron's Dividend: A Tempting Yield

Chevron has a long history of providing shareholders with dividends, and the company recently announced a quarterly dividend of $1.63 per share, payable on March 11th. This represents an annualized dividend yield of 4.20%, a boost from the previous dividend of $1.51. Chevron's dividend payout ratio is currently 57.39%, indicating that the company is balancing its dividend commitments with its capital allocation priorities.

Analysts Weigh In: Varied Price Targets

Analysts have a range of views on Chevron's future prospects, resulting in varying price targets. TD Cowen lowered its rating from "outperform" to "market perform" and reduced its price target to $150.00, while Royal Bank of Canada upgraded its rating from "hold" to "outperform" and increased its price target to $190.00. Mizuho raised its price target to $200.00 and reiterated its "buy" rating, while Scotiabank downgraded its rating from "sector outperform" to "sector perform" and set a price target of $170.00. UBS Group decreased its price target to $185.00 and maintained a "buy" rating. The average analyst price target for Chevron stands at $180.39, with a consensus rating of "moderate buy."

Five Stocks to Consider Instead

While Chevron is a solid performer, MarketBeat has identified five alternative stocks that top-rated analysts believe offer better buying opportunities. These stocks are recommended for investors seeking potential growth and value opportunities.

Conclusion: Chevron's Positive Prospects Attract Institutional Investors

Red Door Wealth Management LLC's increased stake in Chevron reflects the company's solid financial performance, attractive dividend yield, and favorable outlook within the oil and gas industry. Institutional investors' confidence in Chevron is further evidenced by their collective buying of the company's shares. While analysts' price targets vary, the overall sentiment remains positive, with a moderate buy rating and an average price target of $180.39. Despite Chevron's recent revenue miss, its earnings beat and strong dividend yield make it an attractive investment for income-oriented investors.