Chevron Stock Analysis: Why Jim Cramer Advises Holding CVX Despite Insider Sales

Key Takeaways

• Jim Cramer advises maintaining CVX positions, highlighting the 3.85% dividend yield and company reliability
• Earnings per share reached $1.52, surpassing projections by $0.08, despite a 10.2% revenue decline year-over-year
• Dividend payment increased to $1.78 quarterly ($7.12 annualized, approximately 3.8% yield)
• Institutional investors expanded holdings; institutions now control 72.42% of outstanding shares
• Company insiders divested $89.5M in stock during the previous quarter; Wall Street consensus remains “Hold” at $176.36 target

Chevron (CVX) continues capturing market attention as shares advanced 1.3% to $186.47 during Friday’s opening session — approaching the 52-week peak of $187.90 and generating discussion among professional analysts and individual investors alike.

Chevron Corporation, CVX

Cramer additionally mentioned Chevron’s Venezuelan operations as a potential catalyst, calling it a “kicker” that could drive future appreciation.

Quarterly Dividend Sees Increase

Chevron announced an increase to its quarterly dividend distribution, moving from $1.71 to $1.78 per share. On an annualized basis, this equals $7.12 — translating to approximately 3.8% yield. Shareholders registered by February 17 will receive payment on March 10.

The current dividend payout ratio stands at 106.91%, indicating the company distributes more in dividends than current earnings support — a metric investors should monitor carefully.

Revenue Underperforms While EPS Exceeds Expectations

Chevron’s January 30 quarterly earnings revealed EPS of $1.52, topping the $1.44 analyst consensus. Revenue figures told a different story at $45.79 billion, falling short of the anticipated $48.18 billion and representing a 10.2% year-over-year decline.

The company reported a net margin of 6.51% alongside a 7.89% return on equity. Wall Street projects full-year EPS of $10.79.

The year-over-year earnings comparison presents challenges — Chevron delivered $2.06 EPS during the equivalent quarter in the prior year.

Institutional Investment Expands

Multiple institutional stakeholders expanded their CVX allocations during the third quarter. Trivium Point Advisory LLC increased holdings by 73.9%, acquiring an additional 6,855 units for a total of 16,131 valued near $2.5 million.

American Century Companies led institutional buying activity, adding 810,086 units — representing a 45.6% increase — elevating their total position to 2,586,278 shares worth approximately $401.6 million.

Berkshire Hathaway similarly increased its Chevron stake in the period following Warren Buffett’s leadership transition.

Institutional ownership currently represents 72.42% of total shares.

Insider Activity Shows Significant Selling

While institutions accumulated shares, company insiders moved in the opposite direction. During the most recent quarter, insiders sold 534,898 units totaling $89.5 million.

Vice Chairman Mark A. Nelson divested 45,800 units on February 2 at an average price of $174.17, reducing his stake by 86.48%. Insider Andrew Benjamin Walz sold 1,463 units on February 18 at $183.83 per share.

Company insiders collectively own merely 0.21% of Chevron.

Wall Street Analyst Perspectives

Analyst viewpoints vary considerably. UBS maintains a buy recommendation with a $212 price objective. BMO Capital Markets reiterated an outperform rating with a $190 target. JPMorgan elevated CVX from neutral to overweight, assigning a $176 target.

Conversely, one discounted cash flow analysis suggested CVX trades at approximately 30% above fair value, placing intrinsic worth around $126.

The aggregate rating from 24 analysts points to “Hold” with a mean price target of $176.36 — beneath current trading levels.

CVX’s 50-day moving average registers at $169.52 while the 200-day average sits at $159.57. The stock carries a $372 billion market capitalization, trades at a PE ratio of 28, and exhibits a beta of 0.70.

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