Brendel Financial Advisors LLC, a leading investment management firm based in the United States of America, has announced its new acquisition of shares in Chevron Co. (NYSE: CVX). According to recent reports from the Securities & Exchange Commission, Brendel Financial Advisors LLC purchased 30,829 shares of the oil and gas company’s stock during the first quarter of 2021. The share purchase sums up to an estimated $5,030,000 value in Chevron’s stock. It is noteworthy that this addition makes Chevron comprise about 3.7% of Brendel Financial Advisors LLC’s holdings and ranks as its fourth largest holding.
The move by the investment management firm comes at a time when there is increasing optimism in the oil and gas industry amidst rising energy demand post-Covid-19. With Brent crude pricing hitting $75 a barrel mark for the first time since April 2019, companies such as Chevron are poised to benefit as they continue to pursue strategic measures aimed at navigating challenges posed by market volatility.
Chevron (NYSE:CVX) reported impressive earnings results on Friday, April 28th with earnings per share pegged at $3.55 for the quarter – beating consensus estimates by $0.14. Interestingly, it also disclosed that revenue amassed within the period amounted to $50.79 billion compared to consensus estimates of $49.49 billion – indicative of strong operational performance across various segments.
Chevron’s business model centers around providing administrative services such as financial management and technology support for viable energy and chemical operations across its Upstream and Downstream segments. In line with this business model, their upstream segment focuses on exploring, developing and producing crude oil while managing other areas like liquefaction processes associated with natural gas regasification among others.
Analysts have projected Chevron having an optimistic earnings outlook based on current trends; it is estimated that it will post about 13.82 per share earnings for this fiscal year. Based on current stock market figures and Chevron’s proven record of performance, the investment decision made by Brendel Financial Advisors LLC can be deemed as a step towards achieving excellent returns for stakeholders in the long term.
Updated on: 27/09/2023
Debt to equity ratio: Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
8:00 PM (UTC)
Date:27 September, 2023
|Analyst / firm||Rating|
John M Royall
Institutional Investors Show Confidence in Chevron Despite Green Initiative Challenges
Chevron, a giant multinational energy corporation providing administration, financial management, and technology support to energy and chemical operations worldwide, has seen a wave of institutional investors adding to or reducing their stakes in the company. &Mayflower Financial Advisors LLC was one such institutional investor that increased its holdings in Chevron by 1.6% during the fourth quarter of 2020. As per a recent report, another institutional investor &M&R Capital Management Inc. boosted its position in Chevron by 9.8% during the same period.
Along with Mayflower Financial Advisors and M&R Capital Management Inc., Albion Financial Group UT, Miracle Mile Advisors LLC, and WC Walker & Associates Inc. have also added to their respective holdings in Chevron by varying degrees. Collectively, these institutions hold nearly 70% of the company’s stock.
On Monday this week, shares of NYSE CVX opened at $157.26, and the company currently boasts a market cap of $297.95 billion with a price-to-earnings ratio of 8.49 and a beta of 1.17. While Chevron has been consistent in providing dividends to its investors who received a payout on Monday this week in the form of $1.51 per share for the quarter ended May 19th following an ex-dividend date on May 18th.
As for expert opinions on CVX shares’ future performance: Scotiabank raised Chevron from ‘sector perform’ to ‘sector outperform’, demonstrating their renewed faith in the company’s capabilities post-pandemic, while Cowen reduced their target price from $185 to $170 but kept an “outperform” rating on it.
Overall analysts are bullish about Chevron’s long term future even as it faces challenges from green initiatives aiming to phase out fossil fuels over fears CO2 emissions cause global warming crises; something governments are aggressively combating through policies favoring greener alternatives lately.
With the world gradually moving to alternative energy sources, Chevron’s strategy of investing in clean hydrogen is expected to bring returns in the long term as the demand for clean fuels heats up. Meanwhile, it will continue to maintain its positions in conventional fossil fuel sectors over time, as those remain viable business opportunities.&chevron