Institutional Investors Ramp Up Chevron Holdings in Q4

Institutional Investors Increase Holdings in Chevron During Fourth Quarter

According to recent disclosures filed with the Securities and Exchange Commission (SEC), Pinnacle Associates Ltd. significantly increased its stake in Chevron Co. (NYSE: CVX) during the fourth quarter of 2022. The fund acquired an additional 18,945 shares, bringing its total holdings to 170,957 shares, valued at approximately $25.5 million at the end of the reporting period.

This move mirrors a broader trend among institutional investors. Life Planning Partners Inc. initiated a new position in Chevron valued at approximately $192,000 during the same period. Culbertson A N & Co. Inc. expanded its holdings by 0.5%, now owning 50,284 shares worth $7.5 million.

Lederer & Associates Investment Counsel CA aggressively increased its holdings by 91.0%, acquiring 4,507 additional shares and now owning a total of 9,461 shares worth $1.4 million. Woodmont Investment Counsel LLC augmented its position by 8.4%, holding 104,222 shares valued at $15.5 million. Griffin Asset Management Inc. also expanded its stake by 3.3%, owning 73,981 shares worth $11.0 million.

Collectively, institutional investors now hold 72.42% of Chevron's outstanding shares, highlighting their confidence in the company's long-term prospects.

Chevron Stock Performance and Financial Results

Chevron's stock closed Friday's trading session at $157.74, marking a gain of $1.39. Despite trading slightly below its 50-day simple moving average of $152.23, it is above its 200-day simple moving average of $152.57. The company has a solid financial profile, with a quick ratio of 1.01, a current ratio of 1.27, and a debt-to-equity ratio of 0.13.

On February 2nd, Chevron reported strong financial results for the fourth quarter of 2022. The company surpassed analysts' expectations by posting earnings per share (EPS) of $3.45, beating the consensus estimate of $3.19. Revenue for the quarter reached $47.18 billion, though it fell short of the anticipated $50.93 billion.

Despite the revenue shortfall, Chevron remains optimistic about its prospects for the current year. Sell-side analysts project EPS of $13.04 for 2023.

Dividend Increase and Analyst Sentiment

Chevron recently announced a quarterly dividend increase to $1.63 per share, payable to shareholders of record as of February 16th. This represents a boost from the previous dividend of $1.51 and translates to an annualized dividend yield of 4.13%. The dividend payout ratio stands at 57.39%.

Several equity research analysts have weighed in on Chevron's prospects. Mizuho upgraded its price target from $195.00 to $200.00 and maintained a "buy" rating. However, DZ Bank downgraded the stock from "buy" to "hold" and set a price objective of $160.00. UBS Group lowered its target price from $194.00 to $185.00 but retained a "buy" rating.

Jefferies Financial Group upgraded Chevron from "hold" to "buy" and set a price target of $184.00. Conversely, Scotiabank downgraded the stock from "sector outperform" to "sector perform" and lowered its price target to $170.00.

Overall, seven investment analysts rate Chevron as a "hold," while eleven recommend a "buy." The consensus rating is "Moderate Buy," with an average price target of $180.39.

Company Overview

Chevron Corporation is a multinational energy company engaged in integrated energy and chemicals operations worldwide. Through its subsidiaries, the company explores, develops, produces, and transports crude oil and natural gas. It also processes, liquefies, transports, and regasifies liquefied natural gas.

Chevron's operations extend to carbon capture and storage and a gas-to-liquids plant. The company operates in various segments, including upstream (exploration, production, and transportation) and downstream (refining, marketing, and chemicals).