Institutional investors hold a significant majority in Chevron Corporation (NYSE:CVX), with about 65% of the company's shares, indicating a strong influence over the oil giant. The Vanguard Group is at the forefront of this ownership with an 8.6% stake, closely followed by BlackRock (NYSE:BLK) and State Street (NYSE:STT) Global Advisors, each with 6.6%. This concentration of shares among major institutions could lead to potential risks in times of market volatility, as "crowded trades" may emerge.
Retail investors also play a notable role in Chevron's ownership structure, holding nearly one-third (29%) of the company's shares. This substantial portion suggests that these individual shareholders have a considerable say in the company's policy decisions.
Despite owning less than 1% of Chevron's shares, insiders maintain significant investment valued at $45 million. Tracking their share transactions can offer insight into Chevron management's confidence levels.
Additionally, strategic public company investments account for approximately 5.9% of Chevron's ownership. Such stakes could hint at business alignments or cooperative ventures within the energy sector.
Understanding the distribution of Chevron's ownership is essential when considering the company's historical financial performance. It provides context to analyst consensus on Chevron’s future prospects and how retail investors might influence governance issues.
InvestingPro Insights
Chevron Corporation not only boasts a strong institutional presence but also stands out for its financial resilience and shareholder returns. According to InvestingPro data, Chevron has a robust market capitalization of $271.64 billion, underpinned by a P/E ratio of 10.65 for the last twelve months as of Q3 2023, signaling an attractive valuation compared to peers. The company’s commitment to shareholder value is evident through a significant dividend yield of 4.18% as of the end of November 2023, complemented by a history of increasing dividends for 53 consecutive years, an InvestingPro Tip that highlights the firm's reliability for income-focused investors.
Investors may also find comfort in Chevron's low price volatility, a characteristic that could provide stability in an investment portfolio, especially during uncertain market conditions. Furthermore, the company's ability to maintain profitability over the last twelve months, as indicated by another InvestingPro Tip, suggests operational efficiency even amidst industry challenges.
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