Chevron Corp (NYSE:CVX) has reported a significant transaction involving one of its top executives, VP and Controller Alana K. Knowles (NYSE:KN). According to the latest filings, Knowles sold shares of the company's common stock, resulting in a total transaction value of $448,252.
The transaction occurred on April 2, 2024, with Knowles selling 2,800 shares at a price range of $160.09 each. This sale was executed under a Rule 10b5-1 trading plan, which Knowles had adopted on November 27, 2023. Such plans allow company insiders to set up predetermined trading arrangements for selling stocks at a later date, providing an affirmative defense against accusations of trading on non-public, material information.
On the same date, Knowles also acquired 2,800 shares through the exercise of options, at a price of $110.37 per share, amounting to a total of $309,036. It's worth noting that, following these transactions, Knowles' direct ownership in Chevron stock has been adjusted to 276 shares. Additionally, Knowles has an indirect ownership of 12,026 shares through a 401(k) plan, which saw an increase by 299 shares between February 1, 2024, and April 2, 2024.
The options exercised by Knowles were part of a grant dated January 29, 2020, with a vesting schedule that allowed one-third of the shares to vest annually over three years, starting on January 31, 2021. The options are set to expire on January 29, 2030.
Investors and the market often pay close attention to insider transactions as they can provide insights into an executive's perspective on the company's future performance. However, it is important to consider that trading activities by executives can be influenced by a variety of factors and may not necessarily reflect their outlook on the company's potential.
Chevron Corp, headquartered in San Ramon, California, is a multinational energy corporation with a significant presence in the petroleum refining industry.
InvestingPro Insights
As Chevron Corp (NYSE:CVX) makes headlines with insider trading activities, investors are closely monitoring the company's performance and stability. Chevron has demonstrated a consistent commitment to rewarding its shareholders, having raised its dividend for 36 consecutive years, a testament to its financial resilience and strategic planning. This dedication is further underscored by the company maintaining dividend payments for over half a century.
With a market capitalization of $298.44 billion, Chevron stands as a substantial force in the Oil, Gas & Consumable Fuels industry. Its stock is known for low price volatility, which may appeal to investors seeking stable equity in a typically fluctuating market. The company's financials reveal a Price/Earnings (P/E) Ratio of 14.05, with an adjusted P/E ratio over the last twelve months as of Q4 2023 at 13.1, reflecting a favorable valuation relative to earnings.
InvestingPro Tips highlight Chevron's moderate level of debt and its ability to comfortably cover interest payments with its cash flows, suggesting a healthy balance sheet. Additionally, the company has been profitable over the last twelve months, with analysts predicting profitability to continue this year. Chevron's dividend yield as of early 2024 stands at an attractive 4.06%, paired with a notable dividend growth of 14.79% over the last twelve months as of Q4 2023.
For investors seeking more in-depth analysis and additional insights on Chevron's prospects, InvestingPro offers a comprehensive suite of tools and metrics. There are 6 more InvestingPro Tips available for Chevron, which can be accessed at https://www.investing.com/pro/CVX. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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