Valero Energy (NYSE:VLO) Hits New 1-Year High on Better-Than-Expected Earnings

Valero Energy Corporation (NYSE:VLO) hit a new 52-week high during trading on Thursday following a better than expected earnings announcement. The company traded as high as $194.50 and last traded at $188.3070, with a volume of 1868986 shares changing hands. The stock had previously closed at $184.02.

The oil and gas company reported $3.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.10 by $0.72. The firm had revenue of $30.37 billion for the quarter, compared to the consensus estimate of $28.20 billion. Valero Energy had a return on equity of 8.69% and a net margin of 1.21%.

Valero Energy Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 9th. Stockholders of record on Thursday, February 5th will be issued a $1.20 dividend. This is a boost from Valero Energy’s previous quarterly dividend of $1.13. The ex-dividend date of this dividend is Thursday, February 5th. This represents a $4.80 annualized dividend and a dividend yield of 2.5%. Valero Energy’s payout ratio is presently 94.36%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. Morgan Stanley lifted their target price on Valero Energy from $175.00 to $180.00 and gave the company an “equal weight” rating in a research report on Tuesday. Jefferies Financial Group lifted their price target on shares of Valero Energy from $181.00 to $194.00 and gave the stock a “buy” rating in a research note on Friday, October 10th. JPMorgan Chase & Co. upped their price target on Valero Energy from $197.00 to $200.00 and gave the company an “overweight” rating in a report on Thursday, January 8th. Wells Fargo & Company lifted their target price on shares of Valero Energy from $216.00 to $220.00 and gave the company an “overweight” rating in a report on Monday, November 10th. Finally, Bank of America reiterated a “neutral” rating and issued a $195.00 price objective (down from $198.00) on shares of Valero Energy in a research report on Thursday, December 11th. Two research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating and nine have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $183.33.

Insider Buying and Selling at Valero Energy

In other news, CFO Jason W. Fraser sold 9,933 shares of Valero Energy stock in a transaction that occurred on Friday, November 21st. The shares were sold at an average price of $174.02, for a total transaction of $1,728,540.66. Following the sale, the chief financial officer owned 134,196 shares in the company, valued at $23,352,787.92. This trade represents a 6.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.37% of the stock is owned by insiders.

Institutional Trading of Valero Energy

Large investors have recently made changes to their positions in the business. Wealth Alliance Advisory Group LLC grew its stake in Valero Energy by 3.9% during the fourth quarter. Wealth Alliance Advisory Group LLC now owns 1,873 shares of the oil and gas company’s stock worth $305,000 after buying an additional 70 shares in the last quarter. Concurrent Investment Advisors LLC increased its position in shares of Valero Energy by 14.0% during the 4th quarter. Concurrent Investment Advisors LLC now owns 7,848 shares of the oil and gas company’s stock valued at $1,278,000 after purchasing an additional 962 shares during the last quarter. Generali Investments Management Co LLC increased its holdings in Valero Energy by 31.4% during the 4th quarter. Generali Investments Management Co LLC now owns 2,000 shares of the oil and gas company’s stock worth $326,000 after purchasing an additional 478 shares during the period. Mowery & Schoenfeld Wealth Management LLC grew its holdings in Valero Energy by 37.5% during the 4th quarter. Mowery & Schoenfeld Wealth Management LLC now owns 359 shares of the oil and gas company’s stock worth $58,000 after acquiring an additional 98 shares in the last quarter. Finally, Diversified Enterprises LLC bought a new position in shares of Valero Energy during the fourth quarter valued at approximately $235,000. Institutional investors own 78.69% of the company’s stock.

Valero Energy Trading Up 3.3%

The stock has a market capitalization of $57.96 billion, a P/E ratio of 39.31, a price-to-earnings-growth ratio of 1.08 and a beta of 0.77. The company has a current ratio of 1.60, a quick ratio of 1.09 and a debt-to-equity ratio of 0.36. The company has a 50-day moving average price of $174.85 and a 200 day moving average price of $163.26.

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.