Valero Energy Corporation (NYSE:VLO) Receives Consensus Recommendation of “Moderate Buy” from Brokerages

Shares of Valero Energy Corporation (NYSE:VLO) have been assigned an average recommendation of “Moderate Buy” from the twenty-one brokerages that are presently covering the company, MarketBeat reports. One analyst has rated the stock with a sell recommendation, nine have assigned a hold recommendation, ten have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average 12-month target price among brokers that have covered the stock in the last year is $262.8235.

A number of research analysts recently commented on the company. Zacks Research downgraded Valero Energy from a “strong-buy” rating to a “hold” rating in a report on Monday, June 22nd. Barclays lifted their price objective on Valero Energy from $261.00 to $279.00 and gave the stock an “overweight” rating in a report on Wednesday, July 1st. UBS Group reiterated a “buy” rating and set a $280.00 target price on shares of Valero Energy in a research note on Thursday, June 11th. Citigroup raised their price target on shares of Valero Energy from $259.00 to $302.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 14th. Finally, Wolfe Research restated an “underperform” rating and issued a $203.00 price target on shares of Valero Energy in a research note on Tuesday, April 21st.

Valero Energy Trading Down 1.2%

VLO opened at $310.90 on Friday. The firm’s 50 day moving average is $262.98 and its 200-day moving average is $232.93. Valero Energy has a 52-week low of $130.78 and a 52-week high of $320.24. The company has a quick ratio of 1.15, a current ratio of 1.58 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $92.32 billion, a P/E ratio of 22.59, a P/E/G ratio of 0.38 and a beta of 0.55.

Valero Energy (NYSE:VLO) last released its quarterly earnings results 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. Valero Energy had a net margin of 3.37% and a return on equity of 15.94%. The business had revenue of $32.38 billion during the quarter, compared to analyst estimates of $31.38 billion. During the same period last year, the business earned $0.89 EPS. The business’s revenue was up 7.0% on a year-over-year basis. Analysts expect that Valero Energy will post 32.61 EPS for the current fiscal year.

Valero Energy Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Monday, August 31st. Stockholders of record on Friday, July 31st will be given a $1.20 dividend. The ex-dividend date of this dividend is Friday, July 31st. This represents a $4.80 annualized dividend and a dividend yield of 1.5%. Valero Energy’s payout ratio is presently 34.88%.

Insider Activity

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

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of VLO. Ballast Inc. lifted its stake in Valero Energy by 7.4% during the second quarter. Ballast Inc. now owns 6,217 shares of the oil and gas company’s stock worth $1,619,000 after purchasing an additional 430 shares during the last quarter. Regent Peak Wealth Advisors LLC acquired a new position in shares of Valero Energy in the 2nd quarter valued at about $205,000. Heck Capital Advisors LLC acquired a new position in shares of Valero Energy in the 2nd quarter valued at about $286,000. Tema ETFs LLC grew its position in shares of Valero Energy by 10.2% during the 2nd quarter. Tema ETFs LLC now owns 6,270 shares of the oil and gas company’s stock valued at $1,633,000 after buying an additional 580 shares during the last quarter. Finally, HRC Wealth Management LLC acquired a new stake in Valero Energy during the second quarter worth about $208,000. Institutional investors own 78.69% of the company’s stock.

Valero Energy News Summary

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

• Positive Sentiment: Goldman Sachs raised Valero Energy’s price target to $357 from $286 and kept a buy rating, signaling meaningful upside from current levels. Benzinga article
• Positive Sentiment: TD Cowen also lifted its price target on Valero to $338 from $292, reinforcing improving Street sentiment on the stock. Benzinga article
• Positive Sentiment: A recent comparison of Valero vs. Cenovus Energy argued that VLO’s refining advantage and near-term upside make it the more attractive energy stock right now. Yahoo Finance article
• Neutral Sentiment: Another article echoed the same Valero vs. Cenovus comparison, but it was more of an opinion/research piece than a new operational update for VLO. Zacks article
• Neutral Sentiment: Zacks also published a long-term growth article naming Valero as a top growth stock, which is supportive but not a direct catalyst. Zacks article

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.