Pennsylvania Retirement Fund Increases Chevron Holdings by 4.2%

The Commonwealth of Pennsylvania Public School Employees Retirement System has expanded its investment in Chevron Corporation, increasing its stake by 4.2% during the second quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the retirement system now holds 398,331 shares of Chevron, valued at approximately $57.04 million following the acquisition of an additional 16,127 shares during this period.

Several other institutional investors have also adjusted their positions in Chevron. Empower Advisory Group LLC increased its holdings by 6.4%, now owning 795,415 shares worth $113.9 million. Foundations Investment Advisors LLC raised its stake by 5.9%, holding 62,610 shares valued at $8.97 million. Similarly, Capstone Financial Advisors Inc. upped its position by 21.0%, acquiring 3,840 shares valued at about $550,000.

As of now, institutional investors and hedge funds collectively own 72.42% of Chevron’s shares, reflecting a strong institutional interest in the oil and gas sector.

Insider Trading Activity

Recent trading activity among company insiders has also been noteworthy. On August 29, 2023, Vice President Alana K. Knowles sold 3,978 shares of Chevron at an average price of $160.00, resulting in a transaction worth $636,480. Following this sale, Knowles retained 1,181 shares valued at approximately $188,960, marking a significant reduction of 77.11% in her ownership.

Additionally, Director John B. Hess sold 375,000 shares on August 22, 2023, for a total of $59.36 million at an average price of $158.30. After this transaction, Hess holds 1,403,045 shares, valued at about $222.1 million, indicating a 21.09% decrease in his position. Insider ownership currently stands at a minimal 0.21% of the company’s stock.

Financial Performance and Future Outlook

Chevron recently announced its quarterly earnings results on October 31, 2023, reporting earnings of $1.85 per share, exceeding analysts’ expectations of $1.71 by $0.14. The company generated $48.17 billion in revenue, surpassing estimates of $46.99 billion, although this figure represents a 1.9% decline compared to the same quarter last year.

Looking ahead, research analysts expect Chevron to report an earnings per share (EPS) of $10.79 for the current fiscal year, reflecting the company’s ongoing recovery and potential growth in the energy sector.

Chevron has also announced a quarterly dividend of $1.71, set to be paid on December 10, 2023, to shareholders of record on November 18, 2023. This dividend represents an annualized payout of $6.84 and a yield of 4.3%. The ex-dividend date is November 18, 2023, with a current payout ratio of 96.20%.

Market analysts have recently issued various ratings for Chevron. Morgan Stanley raised its price target from $177.00 to $180.00, while Mizuho increased its target from $191.00 to $204.00. Piper Sandler adjusted its target down from $171.00 to $169.00, maintaining an “overweight” rating. Overall, the consensus rating for Chevron stock includes 11 Buy ratings, 9 Hold ratings, and 3 Sell ratings, with a consensus price target of $166.55.

Chevron Corporation, through its subsidiaries, is engaged in integrated energy and chemical operations both in the United States and internationally, operating in the upstream and downstream segments of the industry.