From Nasdaq: 2024-09-17 15:00:00

Chevron Corporation (CVX) became the most shorted large-cap stock in the U.S. in August, surpassing Tesla (TSLA). Shorting of CVX stock surged by over $200 million. This indicates bearish sentiment towards the company, driven by concerns over falling oil prices, natural gas supply, and regulatory scrutiny over an acquisition.

Chevron’s stock price hit a 52-week low and dropped over 7% in the past three months. Factors like weakness in commodity prices and uncertainties surrounding the Hess acquisition could further impact the stock. Analysts have been revising down earnings estimates for Chevron, affecting its future outlook and potential for growth in the near term.

Despite the challenges, Chevron’s strong production growth in the Permian Basin, attractive dividend yield, and undervaluation make it a compelling investment. The company’s record-setting production and stable dividend payments present long-term growth opportunities. Valuation metrics show the stock is trading at a discount, making it an attractive option for income-focused investors.



Read more at Nasdaq: Short Sellers Go After Chevron Stock: Still a Hold?