Valero Energy Corporation (NYSE:VLO) Receives $288.00 Average Price Target from Brokerages

Valero Energy Corporation (NYSE:VLO) has been assigned an average rating of “Moderate Buy” from the twenty-one ratings firms that are covering the stock, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating, eleven have given a buy rating and two have given a strong buy rating to the company. The average 1 year price target among brokers that have updated their coverage on the stock in the last year is $288.00.

VLO has been the subject of a number of analyst reports. Citigroup lifted their price objective on shares of Valero Energy from $259.00 to $302.00 and gave the company a “neutral” rating in a report on Tuesday, July 14th. UBS Group upped their target price on shares of Valero Energy from $280.00 to $355.00 and gave the stock a “buy” rating in a report on Friday, July 31st. The Goldman Sachs Group raised their price target on shares of Valero Energy from $286.00 to $357.00 and gave the company a “buy” rating in a research report on Wednesday, July 22nd. Jefferies Financial Group set a $350.00 price target on Valero Energy in a research note on Monday, August 3rd. Finally, Zacks Research raised Valero Energy from a “hold” rating to a “strong-buy” rating in a report on Tuesday, August 4th.

Valero Energy News Summary

Here are the key news stories impacting Valero Energy this week:

• Positive Sentiment: Record diesel prices are creating an attractive margin environment for refiners. Valero is identified among the companies positioned to benefit as fuel prices diverge from crude oil prices, potentially supporting near-term profits. Diesel Prices Are Breaking Records: 3 Refiners Turning the Crisis Into Record Profits
• Positive Sentiment: Gasoline prices above $4 per gallon are supporting the outlook for refiners capable of capturing strong fuel margins. Valero was included among refining stocks viewed favorably in this environment. 4 Refining Stocks to Buy as Gas Prices Top $4 a Gallon
• Positive Sentiment: Analysts are raising earnings estimates for Valero, a trend that could provide additional support for the stock after its recent gains. Earnings Estimates Moving Higher for Valero Energy
• Positive Sentiment: VLO was added to multiple Zacks Rank #1 (Strong Buy) lists, including value, growth and overall Strong Buy screens. These rankings may attract additional buying from quantitative and momentum-focused investors. New Strong Buy Stocks for August 17th
• Neutral Sentiment: Unusually heavy put-option activity suggests some traders are positioning for downside or hedging existing holdings. Investors purchased 23,642 puts, about 179% above typical volume, but options activity alone does not establish a fundamental change in Valero’s outlook. Investors Purchase Large Volume of Put Options on Valero Energy

Valero Energy Price Performance

Shares of VLO opened at $350.14 on Wednesday. The business’s fifty day moving average is $287.63 and its 200 day moving average is $250.74. Valero Energy has a 12-month low of $136.87 and a 12-month high of $351.00. The company has a quick ratio of 1.23, a current ratio of 1.64 and a debt-to-equity ratio of 0.37. The stock has a market cap of $100.82 billion, a P/E ratio of 14.53, a P/E/G ratio of 0.23 and a beta of 0.55.

Valero Energy (NYSE:VLO) last announced its quarterly earnings results on Thursday, July 30th. The oil and gas company reported $12.54 EPS for the quarter, beating analysts’ consensus estimates of $10.11 by $2.43. Valero Energy had a net margin of 5.17% and a return on equity of 26.74%. The business had revenue of $44.48 billion during the quarter, compared to analyst estimates of $39.47 billion. During the same quarter in the previous year, the business posted $2.28 EPS. Valero Energy’s quarterly revenue was up 48.8% on a year-over-year basis. Sell-side analysts anticipate that Valero Energy will post 40.62 earnings per share for the current fiscal year.

Valero Energy Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, August 31st. Investors of record on Friday, July 31st will be given a dividend of $1.20 per share. The ex-dividend date of this dividend is Friday, July 31st. This represents a $4.80 annualized dividend and a dividend yield of 1.4%. Valero Energy’s payout ratio is presently 19.92%.

Insider Transactions at Valero Energy

In related news, SVP Eric A. Fisher sold 7,500 shares of the company’s stock in a transaction on Monday, June 29th. The stock was sold at an average price of $268.17, for a total transaction of $2,011,275.00. Following the completion of the sale, the senior vice president owned 19,742 shares in the company, valued at approximately $5,294,212.14. This represents a 27.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 0.36% of the company’s stock.

Hedge Funds Weigh In On Valero Energy

A number of hedge funds have recently bought and sold shares of VLO. Norges Bank bought a new stake in Valero Energy during the fourth quarter worth $1,111,542,000. Bank of America Corp DE bought a new position in Valero Energy in the 2nd quarter valued at $1,195,943,000. Arrowstreet Capital Limited Partnership bought a new position in Valero Energy in the 3rd quarter valued at $275,239,000. Pacer Advisors Inc. increased its position in shares of Valero Energy by 2,635.7% during the 4th quarter. Pacer Advisors Inc. now owns 950,527 shares of the oil and gas company’s stock valued at $154,736,000 after purchasing an additional 915,782 shares during the last quarter. Finally, Amundi raised its stake in shares of Valero Energy by 45.3% during the 1st quarter. Amundi now owns 2,584,976 shares of the oil and gas company’s stock worth $638,695,000 after purchasing an additional 806,018 shares during the period. 78.69% of the stock is owned by hedge funds and other institutional investors.

About Valero Energy

Valero Energy Corporation is a San Antonio, Texas–based integrated downstream energy company that manufactures and markets transportation fuels, petrochemical feedstocks and other industrial products. The company’s operations focus on refining crude oil into finished fuels such as gasoline, diesel and jet fuel, as well as producing asphalt and other refined product streams for commercial and industrial customers.

In addition to refining, Valero has significant operations in renewable fuels, including the production of ethanol and other biofuels, and it manages an extensive logistics network of pipelines, terminals, rail and marine assets to move feedstocks and finished products.