Modern Wealth Management LLC has expanded its holdings in Chevron Corporation (NYSE: CVX) by acquiring an additional 4,071 shares during the second quarter of 2023. According to the firm’s recent 13F filing with the Securities and Exchange Commission (SEC), this increase represents a 3.6% rise, bringing Modern Wealth’s total ownership to 116,659 shares valued at approximately $16.7 million.
The move is part of a broader trend among institutional investors, with several firms recently adjusting their positions in Chevron. Notable among them, Lazard Asset Management LLC raised its stake by 35.1%, now owning 247,268 shares worth $35.4 million after acquiring 64,177 shares. London Co. of Virginia also increased its holdings by 27.6%, totaling 2,106,634 shares valued at $301.7 million.
Gallagher Fiduciary Advisors LLC and EP Wealth Advisors LLC have also made significant adjustments, increasing their stakes by 3.7% and 2.4%, respectively. Gallagher now holds 10,632 shares valued at $1.5 million, while EP Wealth owns 150,527 shares worth $21.6 million. In a remarkable move, Engineers Gate Manager LP boosted its position dramatically by 2,735.2%, now controlling 142,524 shares valued at $20.4 million.
Overall, institutional investors currently own 72.42% of Chevron’s stock, reflecting strong confidence in the company’s performance.
In related developments, Chevron’s Director, John B. Hess, sold 275,000 shares on November 20, 2023. The shares were sold at an average price of $150.75, totaling approximately $41.5 million. Following this transaction, Hess retains 1,128,045 shares valued at about $170.1 million, indicating a 19.6% decrease in his position. This transaction has been documented in a filing with the SEC.
Chevron’s stock performance has been closely monitored, particularly after the company reported its earnings results on October 31, 2023. The firm posted earnings of $1.85 per share, exceeding analysts’ estimates of $1.71 by $0.14. With a net margin of 6.57% and a return on equity of 8.74%, Chevron recorded revenues of $48.17 billion for the quarter, surpassing the anticipated $46.99 billion. Nevertheless, this represents a 1.9% decline compared to the same quarter last year, where the company reported earnings of $2.48 per share.
In addition to the earnings report, Chevron recently declared a quarterly dividend of $1.71 payable on December 10, 2023, to shareholders of record as of November 18, 2023. This annualizes to $6.84 per share, representing a 4.6% dividend yield, with a payout ratio of 96.20%.
As the market continues to evolve, analysts are adjusting their price targets for Chevron. Melius initiated coverage with a “hold” rating and a target of $155.00. Scotiabank raised its target from $160.00 to $165.00, while Zacks Research downgraded the stock from “hold” to “strong sell.” Barclays decreased its target from $160.00 to $158.00, and Bank of America revised its estimate from $183.00 to $180.00, maintaining a “buy” rating.
Currently, investment analysts have rated Chevron with one “strong buy,” eleven “buy,” seven “hold,” and four “sell” ratings. According to MarketBeat.com, the consensus rating stands at “hold,” with an average price target of $166.00.
Chevron Corporation operates in the energy and chemicals sector, focusing on integrated operations both domestically and internationally. The company is divided into two segments: Upstream, which handles exploration and production, and Downstream, responsible for refining and marketing.
As Chevron continues to navigate the complexities of the energy market, the actions of institutional investors like Modern Wealth Management LLC reveal a significant level of confidence in the company’s future prospects.
