Chevron Posts $5.28 EPS Beat as Insiders Sell $38.5 Million

Chevron reported quarterly earnings of $5.28 per share on October 30, beating the consensus estimate of $4.87 by $0.41. Revenue of $65.24 billion topped analyst forecasts of $61.82 billion and rose 36.3% year over year, against $1.85 per share in the same quarter last year. The result anchors an otherwise mixed institutional picture.

Diversified Trust Co cut its Chevron stake by 3.7% in the third quarter, selling 2,552 shares, according to its most recent SEC filing (the US Securities and Exchange Commission). The institutional investor (a fund managing money for pensions, endowments and wealthy clients) still held 67,212 shares worth $13,726,000. That is a trim, not an exit. The verdict: even asset managers with conviction rebalance.

How are the giants positioned?

Institutional investors own 72.42% of Chevron's stock, and most of the largest moved the other way. The filings show a broad tilt toward accumulation:

• State Street Corp raised its holding by 3.9% in the second quarter, adding 5,998,852 shares to reach 159,136,768 shares worth $28,016,651,000.
• BlackRock Inc. purchased a new stake in the second quarter worth roughly $25,663,729,000.
• Bank of America Corp DE lifted its position by 5.1% in the first quarter to 27,630,227 shares worth $5,716,694,000.
• Bank of New York Mellon Corp opened a new position in the second quarter of about $2,378,114,000.
• Amundi boosted its stake by 14.1%, buying 1,714,835 shares to reach 13,900,271 shares valued at $2,304,109,000.

What do the insiders know?

Insiders, by contrast, have been selling. Vice Chairman Mark A. Nelson sold 112,000 shares on November 10 at an average price of $210.48, a transaction of $23,573,760.00 that cut his position by 90.58%; he retained 11,647 shares worth roughly $2,451,460.56. CTO Thomas Booth sold 6,000 shares on November 11 at $212.14, totaling $1,272,840.00 and halving his holding to 6,000 shares.

Over the last three months, insiders sold 180,370 shares valued at $38,497,149. Insiders own 0.56% of the stock. The filings do not explain the sellers' motives, and executives sell for many reasons. The sums, however, hardly whisper.

What do the numbers say about valuation?

Chevron shares opened at $219.56 on Friday, up 1.5%. The stock trades between a 12-month low of $146.49 and a high of $236.48, with a 50-day moving average of $215.49 and a 200-day average of $195.58.

The balance sheet metrics remain unglamorous and solid: a current ratio (current assets divided by current liabilities) of 1.34, a quick ratio of 1.07 and a debt-to-equity ratio of 0.16. Market capitalization stands at $431.52 billion, with a price-to-earnings ratio of 15.16, a P/E/G ratio (P/E divided by expected earnings growth) of 0.50 and a beta of 0.47. Return on equity reached 14.49%; net margin was 11.56%.

Does the dividend still carry the story?

Chevron declared a quarterly dividend of $1.78 per share, payable December 10 to shareholders of record on November 18, which is also the ex-dividend date. Annualized, that is $7.12 per share, a yield of 3.2% on a payout ratio of 52.08%. Income investors rarely argue with that arithmetic.

Analysts offer a Moderate Buy consensus and an average target price of $222.96, per MarketBeat.com. Recent moves include Wells Fargo raising its target from $230.00 to $268.00 with an overweight rating on November 2, and Morgan Stanley lifting its target from $226.00 to $230.00 the same day. Royal Bank of Canada went from $220.00 to $230.00 with an outperform rating on September 24, Dbs Bank upgraded to moderate buy on August 6, and Freedom Broker moved from sell to hold at $218.00 on November 5. The ratings distribution: one Strong Buy, twenty-three Buy, six Hold and one Sell. Analysts expect full-year earnings of $18.64 per share.

Chevron remains an integrated energy company spanning upstream exploration and production, downstream refining and marketing, and investments in renewable fuels, carbon capture and hydrogen. The equity tells two stories at once: institutions accumulate, executives depart shares. Readers may draw their own conclusions.