Traders Purchase Large Volume of Valero Energy Call Options (NYSE:VLO)

Valero Energy Corporation (NYSE:VLO) was the target of unusually large options trading on Tuesday. Investors purchased 13,172 call options on the stock. This represents an increase of approximately 57% compared to the typical daily volume of 8,412 call options.

Insider Activity

In related news, SVP Eric A. Fisher sold 7,500 shares of the stock in a transaction on Monday, June 29th. The stock was sold at an average price of $268.17, for a total value of $2,011,275.00. Following the transaction, the senior vice president directly owned 19,742 shares in the company, valued at $5,294,212.14. This trade represents a 27.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.36% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Valero Energy

A number of hedge funds have recently made changes to their positions in the business. State Street Corp lifted its stake in Valero Energy by 0.9% in the fourth quarter. State Street Corp now owns 18,177,191 shares of the oil and gas company’s stock worth $2,959,065,000 after purchasing an additional 163,975 shares during the last quarter. Charles Schwab Investment Management Inc. increased its holdings in shares of Valero Energy by 0.5% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 11,950,982 shares of the oil and gas company’s stock worth $1,945,500,000 after buying an additional 63,919 shares during the period. Norges Bank purchased a new position in shares of Valero Energy in the fourth quarter worth about $1,111,542,000. Franklin Resources Inc. lifted its stake in shares of Valero Energy by 7.5% in the 4th quarter. Franklin Resources Inc. now owns 5,668,210 shares of the oil and gas company’s stock valued at $922,728,000 after acquiring an additional 394,693 shares during the last quarter. Finally, Bank of America Corp DE boosted its holdings in Valero Energy by 11.4% during the 1st quarter. Bank of America Corp DE now owns 5,033,310 shares of the oil and gas company’s stock valued at $1,243,630,000 after acquiring an additional 516,975 shares during the period. 78.69% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several brokerages recently weighed in on VLO. UBS Group reaffirmed a “buy” rating and issued a $280.00 price target on shares of Valero Energy in a research report on Thursday, June 11th. Wolfe Research reiterated an “underperform” rating and issued a $203.00 price objective on shares of Valero Energy in a research note on Tuesday, April 21st. BMO Capital Markets increased their price target on shares of Valero Energy from $230.00 to $270.00 and gave the stock an “outperform” rating in a report on Monday, April 6th. Citigroup raised their price objective on shares of Valero Energy from $259.00 to $302.00 and gave the company a “neutral” rating in a research report on Tuesday. Finally, Raymond James Financial boosted their price target on shares of Valero Energy from $300.00 to $340.00 and gave the company a “strong-buy” rating in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $253.06.

More Valero Energy News

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

• Positive Sentiment: Raymond James raised its price target on Valero Energy to $340 from $300 and reiterated a strong-buy view, signaling continued confidence in the stock’s upside. Raymond James price target update
• Positive Sentiment: Citigroup lifted its price target to $302 from $259, keeping a neutral rating but acknowledging somewhat higher valuation potential. Citigroup price target update
• Positive Sentiment: Unusually heavy call-option buying suggests traders are positioning for more upside in VLO, which can reflect bullish near-term sentiment.
• Positive Sentiment: Renewed Middle East tensions are tightening refined product markets and pushing refining margins higher, a potential tailwind for Valero’s earnings. Zacks article on Middle East tensions and energy stocks
• Neutral Sentiment: Broader market weakness tied to geopolitical headlines may create some volatility, but the main stock-specific driver appears to be improving refining economics rather than general market moves. Market selloff article

Valero Energy Price Performance

Shares of VLO traded up $1.04 during midday trading on Tuesday, reaching $296.83. The stock had a trading volume of 1,050,256 shares, compared to its average volume of 3,475,066. The company has a current ratio of 1.58, a quick ratio of 1.15 and a debt-to-equity ratio of 0.39. The company has a market capitalization of $88.14 billion, a price-to-earnings ratio of 21.58, a price-to-earnings-growth ratio of 0.35 and a beta of 0.55. The company’s 50-day moving average is $254.22 and its 200 day moving average is $225.92. Valero Energy has a 12-month low of $130.78 and a 12-month high of $300.10.

Valero Energy (NYSE:VLO) last announced its quarterly earnings data on Thursday, April 30th. The oil and gas company reported $4.22 earnings per share for the quarter, beating analysts’ consensus estimates of $3.16 by $1.06. The company had revenue of $32.38 billion for the quarter, compared to analysts’ expectations of $31.38 billion. Valero Energy had a return on equity of 15.94% and a net margin of 3.37%.Valero Energy’s revenue for the quarter was up 7.0% compared to the same quarter last year. During the same period last year, the firm posted $0.89 EPS. On average, equities analysts predict that Valero Energy will post 31.04 EPS for the current fiscal year.

Valero Energy Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 23rd. Shareholders of record on Thursday, May 21st were given a dividend of $1.20 per share. This represents a $4.80 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date was Thursday, May 21st. Valero Energy’s dividend payout ratio (DPR) is presently 34.88%.

Valero Energy Company Profile

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.