In this article, we discuss 5 stocks US politicians bought before Russia’s attack on Ukraine. If you want to see more stocks in this selection, click 10 Stocks US Politicians Bought Before Russia’s Attack on Ukraine.
5. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 53
Chevron Corporation (NYSE:CVX) has perhaps been one of the top gainers in the energy sector since Russia invaded Ukraine on February 24, with the stock climbing 24.35% over the last month. Chevron Corporation (NYSE:CVX) operates as a multinational oil and gas company that was founded in 1879 and is based in San Ramon, California.
A Periodic Transaction Report dated February 17 reveals that John Rutherford, a member of the United States House of Representatives from Florida’s 4th congressional district, purchased a stake in Chevron Corporation (NYSE:CVX) worth between $1,001 to $15,000.
On January 26, Chevron Corporation (NYSE:CVX) declared a $1.42 per share quarterly dividend, a 6% increase from its prior dividend of $1.34. The dividend was distributed on March 10, and the stock yields 3.45% as of March 21.
Morgan Stanley analyst Devin McDermott on March 14 downgraded Chevron Corporation (NYSE:CVX) to Equal Weight from Overweight with an unchanged price target of $166. He stated that while Chevron Corporation (NYSE:CVX) shares have gained 46% year-to-date, and roughly 25% in the past month, the valuation is “beginning to look expensive”. He cited that Exxon Mobil Corporation (NYSE:XOM), the closest Chevron peer, has much better prospects.
According to the fourth quarter database of Insider Monkey, 53 hedge funds were bullish on Chevron Corporation (NYSE:CVX), and Berkshire Hathaway is the biggest shareholder of the company. Warren Buffett’s fund owns 38.2 million Chevron Corporation (NYSE:CVX) 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.”
