Dallas, Texas 01/09/2014 (FINANCIALSTRENDS) – Chevron Corporation (NYSE:CVX), the Dow Jones and S&P 500 index market capped, oil and gas producer’s stock posted a 1.3 percent decrease in its market value, during trading January 8. When the day’s trading ended, the stock was trading at $123.29 per share, just 2.75 percent below its 52 week high price point.
The dip in the value to the stock of this integrated oil and gas major come ahead of its fourth quarter operations results announcement which is scheduled to be held on January 31. Yesterday’s dip in the investor confidence in the stock, of this oil major occurred on the back of analyst’s downgrade of the stock ahead of its 4Q results announcement. Research firm Howard Well downgraded the stock from “sector outperform” to “sector perform”.
The rating agency has downgraded the stock with the following analysis, that with the burgeoning increase in the shale gas drilling activity across U.S last year, the oil sector majors have had to go back to their drawing boards to come up with new go to market plans to address the changed market dynamics of supply and demand for oil in U.S. The oil firm had registered, next to flat growth in sales last quarter and its earnings per share had dropped 4.5 percent in the same period. The Downgrade implies that Chevron Corporation (NYSE:CVX), which posted sales of $227 billion in the past 12 months and generated net income of $23.7 billion in the same time period has been relatively slow in changing course as it attempts to realign itself to changed market circumstances.
Chevron Corporation (NYSE:CVX), with a worldwide employee base of sixty two thousand has been involved in the business of refining, marketing and transporting fuels and lubricants to its end customers across the globe.
