Chevron Corporation (CVX) Stock: The Numbers Look Good?

Analysts at Credit Suisse upped their rating on shares of Chevron Corporation (NYSE:CVX) from Neutral to Outperform in their opinion released on November 05. BofA/Merrill analysts again handed out a Neutral rating to CVX stock but they lifted target price for the shares in a flash note to investors on November 05. The price target has been raised from $135 to $140. BofA/Merrill, analysts launched coverage of CVX stock with a Neutral rating, according to their flash note to investors on November 05.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Chevron Corporation (NYSE:CVX)’s prospects. The earliest insider trade took place on 12/03/2018. Johnson James William parted with a total of 4.75 thousand shares of company at average share price of $120.92. The total for the sales was set at $574.37 thousand. After this transaction, the Executive Vice President account balance stood at 17.37 thousand shares. The stock lost -6.93 percent since that insider sale. On 11/29/2018, Johnson James William, Executive Vice President, sold 9.5 thousand shares at a price per share of $118.59. This removed 1.13 million shares from the insider’s fortune and the stock saw a -5.1 percent retreat in value since the news became public. This transaction left 17.37 thousand shares in the Executive Vice President account. On 10/11/2018, Executive Vice President Johnson James William performed a sale transaction worth $569.86 thousand. This sale at $119.97 each has eliminated 4.75 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -6.19 percent decrease since the transaction was reported. The insider now is left with 17.37 thousand shares remaining in the account. Johnson James William, who performs the Executive Vice President job, sold 4.75 thousand shares for $551 thousand. The disposal occurred on 09/13/2018 was priced at $116 per share. The share price plunged -2.98 percent since the reporting date. Johnson James William now left with a stake of 17.37 thousand CVX stock worth $1.96 million after the insider selling.

Chevron Corporation (CVX) is expected to jump by 23.2 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $160-month high price target. This represents a whopping 42.17 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $135, which represents a return potential of 19.96 percent when compared to the closing price of the stock of $112.54 on Friday, January 11. The lowest price target for the stock is $123 — slightly more than 9.29 percent from CVX’s current share price.

The shares are currently floating around the first support level of $111.79. Below this, the next support is placed in the zone of $111.04. Till the time, the CVX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 51.07 on daily chart, which may remain a cause for concern. If the price breaks below $111.04 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $113.17 mark may result into a pull-back move towards $113.8 level.

CVX shares dropped -0.91 points or -0.8 percent on Friday to $112.54 with a light trade volume of 4.466 million shares. After opening the session at $113, the shares went as high as $113.05 and as low as $111.67, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $217 billion and now has 1.93 billion shares outstanding. Chevron Corporation (CVX) stock has lost -2.54 percent of market value in 21 trading days.

CVX stock has a trailing 3-year beta of 1.04, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $6.36 a share in the trailing twelve months. The stock’s value has surged 3.45 percent year to date (YTD) against a decline of -12.53 percent in 12 month’s time. The company’s shares still trade -15.94 percent away from its 1-year high of $133.88 and 12.29 percent up from 52-week low of $100.22. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Chevron Corporation (CVX) are trading at a P/E ratio of 37.96 times earnings reported for the past 12 months. The industry CVX operates in has an average P/E of 22.68. Its P/E ratio went as low as 8.12X and as high as 36.62 over the 5-year span. Further, it is sporting a 1.4 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.11. 40.9 percent is the gross profit margin for Chevron Corporation and operating margin sits at 8.4 percent. Along with this, the net profit margin is 9.1 percent.

Analysts are forecasting revenue to climb 23.3 percent to $46.4B in the next fiscal quarter, while earnings are seen soaring by nearly 177.78 percent to $2 per share. History has shown that shares in Chevron Corporation have gone down on 19 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. In last reported earnings results, it earned $2.11 per share, better than the $2.06, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $44B, worse than the $46.9B analysts expected. Earnings are estimated to increase by 118.9 percent this year, -5.33 percent next year and continue to increase by 57.88 percent annually for the next 5 years.