2. Chevron Corporation (NYSE:CVX)
All-Time Share Price High: $156.22 on March 03, 2022
Number of Hedge Fund Holders: 53
Chevron Corporation (NYSE:CVX) was founded in 1879 and is based in San Ramon, California, and operates as an integrated energy and chemicals company. Amid rising oil and gas prices, the company posted a fourth quarter revenue of $48.13 billion, up roughly 91% year-over-year, outperforming estimates by $2.83 billion.
On March 1, Chevron Corporation (NYSE:CVX) surged 3.4% and topped the Dow Jones index, hitting a new 52-week high after raising its stock buyback program to $5 billion-10 billion per year, up from previous plans for $3 billion-5 billion of annual repurchases. The stock reached an all-time high of $156.22 on March 03, 2022.
Chevron Corporation (NYSE:CVX) declared on January 26 a $1.42 per share quarterly dividend, a 6% increase from its prior dividend of $1.34. The dividend will be paid on March 10, to shareholders of record on February 16.
Truist analyst Neal Dingmann raised the price target on Chevron Corporation (NYSE:CVX) on March 3 to $160 from $150 but kept a Hold rating on the shares. The company’s investor day highlighted its capital and cost discipline, along with a lower carbon focus, the analyst told investors in a research note.
Among the hedge funds tracked by Insider Monkey in Q4 2021, 53 funds were bullish on Chevron Corporation (NYSE:CVX), up from 51 funds in the previous quarter. Warren Buffett’s Berkshire Hathaway is the leading shareholder of Chevron Corporation (NYSE:CVX), with 38.2 million shares worth $4.4 billion.
Here is what Goehring & Rozencwajg Associates has to say about Chevron Corporation (NYSE:CVX) in its Q3 2021 investor letter:
“After successfully replacing 25% of Exxon’s board of directors despite owning just 0.02% of the outstanding equity, Engine No. 1, the climate-focused activist hedge fund, met with Chevron’s management late last summer. In discussions that were later described as “cordial,” Chevron executives shared their plan to reduce carbon emissions. Subsequently, Chevron announced new plans to further reduce carbon output, along with their intention to appoint a new director with “environmental expertise.” Although it remains unclear exactly what Engine No. 1 is planning, rumors suggest the fund has contacted other investors, strongly suggesting they intend to launch a second campaign in the not-too-distant future.
What should Chevron expect?
It was recently reported by The Wall Street Journal that Exxon was considering abandoning two massive natural gas projects: the 75 trillion cubic foot (tcf ) Rovuma LNG project (capital cost $30 bn) and the 5 tcf Ca Voi Xanh offshore-Vietnam gas project (capital cost $10 bn). Exxon board members (most likely including the three supported by Engine No. 1) have publicly expressed concerns about both projects. According to internal reports, these projects are among the highest CO2 producers in Exxon’s pipeline; it is no surprise these projects have been called into question. However, we find the plight of both fields to be perplexing since production would almost certainly be used to displace coal in electricity generation, cutting CO2 emissions by nearly 50%. This fact seems to be lost on the new Exxon board members.”
