TLDR
- Chevron (CVX) reached a new 52-week high of $187.90, having provided a 22.21% total return to shareholders over the last year.
- The company’s stock has seen a 23.51% increase in the past six months, alongside a 22.43% gain since the start of the year.
- Melius upgraded CVX from a ‘Hold’ to a ‘Buy’ rating, establishing a $205 price target, attributing the move to strong shareholder returns and its Permian Basin strategy.
- On February 20, two high-ranking executives divested shares, with their combined sales exceeding $710,000.
- HSBC lowered its rating on the stock, even after increasing its price target, cautioning that its valuation appears elevated following the recent surge.
Chevron (CVX) achieved a 52-week high of $187.90 this week, extending a robust performance that has seen its stock climb over 22% year-to-date.
The prominent energy company has generated a 22.21% total return in the past year, with an even more substantial 23.51% increase observed over the last six months.
Currently, CVX shares are trading at approximately $185.82, slightly under its recent peak.
The stock offers a 3.87% dividend yield and has maintained dividend payouts for 56 consecutive years, a remarkable achievement matched by only a handful of companies across all industries.
InvestingPro’s Fair Value assessment indicates the stock is presently somewhat overvalued, despite its financial health rating remaining “Good.”
Analyst Actions: An Upgrade and a Downgrade
Melius recently elevated its rating on CVX from ‘Hold’ to ‘Buy,’ establishing a price target of $205.
The firm cited Chevron’s emphasis on dividends, share buybacks, and a strategic pivot towards cash generation in the Permian Basin as justifications for its more positive outlook.
Melius additionally highlighted potential benefits from Chevron’s involvement in Venezuela, notwithstanding recent operational challenges at the Amuay refinery after a power outage.
Conversely, HSBC analyst Kim Fustier increased her price target after Chevron surpassed Q4 2025 earnings projections, yet she lowered her rating due to valuation worries.
Fustier’s perspective suggests that the significant year-to-date rally has already incorporated the positive developments, such as increased production, ongoing share repurchases, and robust fundamentals.
Executives Divest Shares
On February 20, two high-ranking Chevron executives executed stock sales.
Alana K. Knowles, the Controller, sold 2,408 CVX shares for $441,314. Andrew Benjamin Walz, President of DM&C, sold 1,463 shares, generating $268,943.
Together, these two transactions amounted to slightly more than $710,000.
Insider sales of this magnitude often draw scrutiny from investors who monitor executive trading for market signals, although such activity does not invariably suggest a negative corporate outlook.
Chevron has also been engaged in international ventures. The company secured a new agreement in Libya’s Sirte Basin and finalized a deal with Subsea 7 in the Eastern Mediterranean, valued between $150 million and $300 million, with offshore operations slated to commence in Q1 2028.
The average daily trading volume is 10,672,076 shares, and the company’s current market capitalization is $370.2 billion.
