Edgar Lomax Co., based in Virginia, has reduced its stake in Chevron Corporation (NYSE: CVX) by 19.4% during the third quarter, as reported in its latest filing with the Securities and Exchange Commission. The fund now holds 221,587 shares, following the sale of 53,445 shares in that period. This adjustment means Chevron accounts for approximately 2.7% of Edgar Lomax Co.’s total investment portfolio, ranking as its 15th largest holding. As of the end of the reporting period, the value of Edgar Lomax Co.’s holdings in Chevron stood at $34.41 million.
A number of other institutional investors have also adjusted their positions in Chevron recently. For example, Perennial Investment Advisors LLC increased its stake by 50.2%, acquiring an additional 6,670 shares to total 19,958 shares, valued at $3.1 million. Similarly, Smith Moore & Co. raised its holdings by 1.7%, owning 19,189 shares worth approximately $2.98 million after a minor increase of 312 shares. United Capital Management of Kansas Inc. also expanded its Chevron position by 2.3%, now owning 42,957 shares valued at $6.67 million.
Islay Capital Management LLC saw a significant growth of 36.8%, acquiring an additional 2,043 shares, bringing its total to 7,599 shares, valued at $1.18 million. Crossmark Global Holdings Inc. increased its holdings by 18.0%, now possessing 89,340 shares worth $13.87 million. Overall, institutional investors currently hold 72.42% of Chevron’s stock.
Catalysts for Market Activity
Several recent developments have impacted Chevron’s stock performance. The company reported its quarterly earnings on January 30, 2024, revealing earnings per share of $1.52, surpassing analysts’ predictions of $1.44 by $0.08. Despite this positive news, Chevron’s revenue for the quarter was $45.79 billion, falling short of the anticipated $48.18 billion and representing a 10.2% decrease compared to the same quarter in the previous year.
Chevron also announced an increase in its quarterly dividend, which will be paid on March 10, 2024. Shareholders of record as of February 17, 2024, will receive a dividend of $1.78, marking an annualized total of $7.12 and a yield of 3.8%. This is an increase from the previous quarterly dividend of $1.71, although the company’s payout ratio currently stands at 106.91%.
Analyst Ratings and Insider Transactions
Recent analyst evaluations present a mixed view on Chevron’s stock. Analysts from various firms have issued ratings ranging from “strong sell” to “buy.” Freedom Capital downgraded Chevron from “hold” to “strong sell,” while Citigroup raised its target price from $179.00 to $210.00 and maintained a “buy” rating. Argus and Melius Research also provided positive outlooks, setting target prices of $203.00 and $205.00, respectively. In total, thirteen analysts have rated Chevron as a buy, while seven issued a hold rating, and four analysts have placed a sell rating.
In terms of insider activity, Alana K. Knowles sold 2,408 shares on February 18, 2024, at an average price of $183.28, totaling $441,338.24. Additionally, Vice Chairman Mark A. Nelson sold 139,600 shares on March 2, 2024, for $26.23 million. Following this transaction, Nelson’s ownership dropped significantly, leaving him with 11,337 shares valued at approximately $2.13 million. In the last 90 days, insiders have sold over 1 million shares worth $187.13 million.
Chevron Corporation operates as an integrated energy company, involved in all aspects of the oil and gas sector. The company’s core activities encompass exploration, production, refining, and marketing under well-known brands such as Chevron, Texaco, and Caltex. With a history tracing back to the early petroleum industry, Chevron has evolved through substantial mergers, including those with Gulf Oil and Texaco, positioning itself as a significant player in the global energy market.
