Stock Traders Purchase High Volume of Valero Energy Put Options (NYSE:VLO)

Valero Energy Corporation (NYSE:VLO) was the recipient of some unusual options trading on Friday. Investors acquired 16,660 put options on the stock. This represents an increase of approximately 41% compared to the average daily volume of 11,821 put options.

Institutional Investors Weigh In On Valero Energy

Several institutional investors have recently bought and sold shares of VLO. Balance Wealth Partners LLC bought a new position in shares of Valero Energy during the 3rd quarter worth approximately $32,000. Latitude Advisors LLC purchased a new position in shares of Valero Energy in the third quarter worth about $34,000. Cornerstone Financial Management LLC grew its position in shares of Valero Energy by 57.6% in the second quarter. Cornerstone Financial Management LLC now owns 104 shares of the oil and gas company’s stock valued at $27,000 after purchasing an additional 38 shares in the last quarter. Mascoma Wealth Management LLC increased its holdings in Valero Energy by 1,980.0% during the 3rd quarter. Mascoma Wealth Management LLC now owns 104 shares of the oil and gas company’s stock worth $40,000 after acquiring an additional 99 shares during the period. Finally, Whipplewood Advisors LLC grew its position in shares of Valero Energy by 3,400.0% during the 1st quarter. Whipplewood Advisors LLC now owns 105 shares of the oil and gas company’s stock valued at $26,000 after purchasing an additional 102 shares in the last quarter. Institutional investors own 78.69% of the company’s stock.

Valero Energy Trading Up 4.0%

NYSE VLO traded up $15.47 on Friday, hitting $400.04. The company’s stock had a trading volume of 4,224,597 shares, compared to its average volume of 3,301,890. The firm has a market cap of $115.18 billion, a PE ratio of 9.00, a PEG ratio of 0.20 and a beta of 0.59. Valero Energy has a 1-year low of $159.90 and a 1-year high of $461.52. The company’s 50-day moving average is $397.64 and its 200 day moving average is $285.06. The company has a quick ratio of 1.23, a current ratio of 1.64 and a debt-to-equity ratio of 0.37.

Valero Energy (NYSE:VLO) last posted its quarterly earnings data on Thursday, October 22nd. The oil and gas company reported $23.90 earnings per share for the quarter, topping the consensus estimate of $21.17 by $2.73. Valero Energy had a net margin of 8.44% and a return on equity of 47.50%. The company had revenue of $46.10 billion during the quarter, compared to analysts’ expectations of $42.71 billion. During the same period in the prior year, the company posted $3.66 earnings per share. Valero Energy’s revenue for the quarter was up 43.3% compared to the same quarter last year. As a group, analysts predict that Valero Energy will post 57.42 earnings per share for the current fiscal year.

Valero Energy Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 21st. Stockholders of record on Tuesday, November 24th will be issued a dividend of $1.20 per share. The ex-dividend date is Tuesday, November 24th. This represents a $4.80 annualized dividend and a dividend yield of 1.2%. Valero Energy’s payout ratio is currently 10.80%.

Valero Energy News Summary

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

• Positive Sentiment: Houston acquisition expands Valero’s refining footprint: Valero agreed to acquire LyondellBasell’s former Houston Refinery site and related assets for $320.5 million. The transaction is expected to close in the fourth quarter of 2026 and includes the assumption of site operations, environmental liabilities, pension costs and related employee obligations. The deal could provide strategic infrastructure and operational growth in a major refining market. Valero to Acquire Former Houston Refinery from LyondellBasell
• Positive Sentiment: Large buyback authorization supports the stock: Valero reportedly authorized up to $10 billion in share repurchases after a strong quarter, increasing its ability to return excess cash to shareholders and potentially support per-share earnings. Valero authorizes USD 10.0 billion buyback
• Positive Sentiment: Exceptional quarterly profitability remains a catalyst: Valero generated $6.8 billion of third-quarter net income, while management allocated $1.7 billion of 2026 capital guidance to sustaining operations. Strong cash generation and refining margins reinforce the company’s capacity for shareholder returns. Valero: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Analyst valuation views improved but remain mixed: A consolidated fair-value estimate reportedly increased to $426.42 from $401.53, while some analysts remain cautious after the stock’s significant multiyear gains. Another analysis argues that Valero may still be undervalued on current earnings. Valero Energy Stock Sees Fair Value Lift
• Negative Sentiment: Put-option activity signals hedging or bearish positioning: Traders bought approximately 16,660 VLO put options, about 41% above average volume. This may reflect increased concern about downside risk following the stock’s strong run.
• Negative Sentiment: Sector-wide profit-taking risk persists: Commentary argued that investors should consider selling refiners after an exceptionally strong year, suggesting concerns that refining margins and share prices may have peaked. It’s Time to Sell the Refiners

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on VLO. Citigroup lifted their target price on Valero Energy from $485.00 to $490.00 and gave the stock a “neutral” rating in a research report on Friday, October 23rd. Raymond James Financial upped their price target on Valero Energy from $350.00 to $450.00 and gave the company a “strong-buy” rating in a research note on Monday, September 14th. The Goldman Sachs Group lifted their price target on shares of Valero Energy from $365.00 to $457.00 and gave the company a “buy” rating in a research note on Wednesday, September 23rd. Erste Group Bank lowered shares of Valero Energy from a “buy” rating to a “hold” rating in a research report on Thursday, August 27th. Finally, Wells Fargo & Company increased their price target on shares of Valero Energy from $485.00 to $489.00 and gave the company an “overweight” rating in a report on Friday, October 23rd. Three research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $379.94.

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.