Valero Energy (NYSE:VLO) Shares Down 2.4% – Time to Sell?

Valero Energy Corporation (NYSE:VLO)’s share price fell 2.4% during mid-day trading on Thursday. The stock traded as low as $416.41 and last traded at $426.0640. 2,798,807 shares changed hands during trading, a decline of 15% from the average daily volume of 3,300,080 shares. The stock had previously closed at $436.75.

Key Valero Energy News

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

• Positive Sentiment: Exceptional Q3 earnings: Valero reported adjusted EPS of $23.90, well above the roughly $21.17 consensus, while revenue increased 43.3% year over year to $46.1 billion. Net income surged to $6.8 billion from $1.1 billion, driven primarily by sharply higher refining margins. Valero Energy Reports Third Quarter 2026 Results
• Positive Sentiment: Favorable operating outlook: Management highlighted tight fuel markets, resilient demand, record ethanol production, improving renewable diesel and ethanol profitability, and expectations that fuel margins could rise again. The company also cited $9.8 billion in cash and disciplined capital spending, supporting financial flexibility. Valero Q3 Earnings Call Highlights Refining and Cash Strength
• Positive Sentiment: Several analysts remain constructive: Barclays raised its price target to $443 and retained an overweight rating, while Wells Fargo lifted its target to $489 and also maintained an overweight rating. Citigroup increased its target to $490, although it kept a neutral rating.
• Neutral Sentiment: Refining-sector momentum is strong but cyclical: Coverage emphasizes that Valero and other refiners are benefiting from tight fuel inventories and unusually high margins. Those conditions support near-term earnings but may be vulnerable to changes in crude prices, fuel demand, supply, or refinery utilization. Valero kicks off refiner results with record quarterly profit on higher margins
• Negative Sentiment: Valuation and analyst disagreement are weighing on sentiment: Freedom Broker reaffirmed a sell rating and assigned a $276 price target, implying substantial downside from the referenced trading level. TD Cowen raised its target to $400 but maintained a hold rating, underscoring concerns that much of the refining upside may already be reflected in VLO’s valuation.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on VLO shares. Raymond James Financial upped their target price on shares of Valero Energy from $350.00 to $450.00 and gave the stock a “strong-buy” rating in a research report on Monday, September 14th. Bank of America raised their target price on shares of Valero Energy from $395.00 to $414.00 and gave the company a “neutral” rating in a research note on Friday, October 2nd. Piper Sandler lifted their price target on shares of Valero Energy from $329.00 to $435.00 and gave the company an “overweight” rating in a report on Thursday, September 3rd. Jefferies Financial Group decreased their price target on shares of Valero Energy from $401.00 to $394.00 and set a “hold” rating on the stock in a research note on Thursday, October 8th. Finally, TD Cowen boosted their price target on shares of Valero Energy from $375.00 to $400.00 and gave the stock a “hold” rating in a research note on Thursday. Two research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $379.94.

Valero Energy Price Performance

The firm has a market cap of $120.70 billion, a PE ratio of 9.43, a PEG ratio of 0.25 and a beta of 0.59. The firm has a fifty day simple moving average of $393.03 and a two-hundred day simple moving average of $310.15. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.23 and a current ratio of 1.64.

Valero Energy (NYSE:VLO) last issued its quarterly earnings data on Thursday, October 22nd. The oil and gas company reported $23.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $21.17 by $2.73. The business had revenue of $46.10 billion for the quarter, compared to analysts’ expectations of $42.71 billion. Valero Energy had a return on equity of 47.50% and a net margin of 8.44%. The company’s revenue for the quarter was up 43.3% on a year-over-year basis. During the same period in the prior year, the firm earned $3.66 EPS. Equities analysts predict that Valero Energy Corporation will post 52.55 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Blue Zone Wealth Advisors LLC increased its holdings in Valero Energy by 2.4% during the 3rd quarter. Blue Zone Wealth Advisors LLC now owns 1,027 shares of the oil and gas company’s stock worth $398,000 after purchasing an additional 24 shares during the period. Grove Bank & Trust raised its position in Valero Energy by 1.0% during the 3rd quarter. Grove Bank & Trust now owns 2,608 shares of the oil and gas company’s stock valued at $1,011,000 after purchasing an additional 25 shares in the last quarter. Sigma Planning Corp raised its position in Valero Energy by 0.4% during the 3rd quarter. Sigma Planning Corp now owns 7,171 shares of the oil and gas company’s stock valued at $2,779,000 after purchasing an additional 29 shares in the last quarter. Cornerstone Financial Management LLC lifted its holdings in shares of Valero Energy by 57.6% in the 2nd quarter. Cornerstone Financial Management LLC now owns 104 shares of the oil and gas company’s stock worth $27,000 after buying an additional 38 shares during the period. Finally, V Square Quantitative Management LLC lifted its holdings in shares of Valero Energy by 0.6% in the 1st quarter. V Square Quantitative Management LLC now owns 6,670 shares of the oil and gas company’s stock worth $1,648,000 after buying an additional 42 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 an international energy company headquartered in San Antonio, Texas. The company’s primary business is refining and marketing transportation fuels, including gasoline, diesel, jet fuel and other products used by commercial, industrial and consumer customers.

Valero operates refineries in the United States, Canada and the United Kingdom. Its refining operations also produce asphalt, petrochemical feedstocks and other petroleum-based products. The company markets fuel through wholesale channels and branded retail networks, including Valero, Beacon and Shamrock-branded locations.

In addition to conventional refining, Valero has businesses focused on renewable fuels.