Valero Energy (NYSE:VLO) Shares Up 4% – What’s Next?

Valero Energy Corporation (NYSE:VLO) rose 4% during mid-day trading on Friday. The stock traded as high as $400.60 and last traded at $400.04. Approximately 4,223,414 shares traded hands during mid-day trading, an increase of 28% from the average session volume of 3,301,728 shares. The stock had previously closed at $384.57.

Trending Headlines about Valero Energy

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 Ratings Changes

Several equities research analysts recently weighed in on the stock. Freedom Broker downgraded shares of Valero Energy from a “hold” rating to a “sell” rating and set a $276.00 price target for the company. in a research report on Friday, October 23rd. The Goldman Sachs Group upped their price objective on Valero Energy from $365.00 to $457.00 and gave the company a “buy” rating in a research report on Wednesday, September 23rd. TD Cowen increased their target price on Valero Energy from $375.00 to $400.00 and gave the company a “hold” rating in a research note on Thursday, October 22nd. Raymond James Financial lifted their target price on Valero Energy from $350.00 to $450.00 and gave the stock a “strong-buy” rating in a report on Monday, September 14th. Finally, Zacks Research upgraded Valero Energy from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, August 4th. Three research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $379.94.

Valero Energy Price Performance

The company has a quick ratio of 1.23, a current ratio of 1.72 and a debt-to-equity ratio of 0.32. The firm has a market cap of $115.18 billion, a PE ratio of 9.00, a P/E/G ratio of 0.21 and a beta of 0.59. The firm’s fifty day simple moving average is $397.64 and its two-hundred day simple moving average is $285.06.

Valero Energy (NYSE:VLO) last released its earnings results on Thursday, October 22nd. The oil and gas company reported $23.90 EPS for the quarter, topping the consensus estimate of $21.17 by $2.73. The firm had revenue of $46.10 billion for the quarter, compared to the consensus estimate of $42.71 billion. Valero Energy had a net margin of 8.44% and a return on equity of 45.90%. The company’s quarterly revenue was up 43.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.66 earnings per share. As a group, research analysts expect that Valero Energy Corporation will post 57.42 EPS for the current year.

Valero Energy Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, December 21st. Stockholders of record on Tuesday, November 24th will be given a dividend of $1.20 per share. The ex-dividend date of this dividend is Tuesday, November 24th. This represents a $4.80 dividend on an annualized basis and a dividend yield of 1.2%. Valero Energy’s dividend payout ratio (DPR) is 10.80%.

Institutional Trading of Valero Energy

Several institutional investors and hedge funds have recently made changes to their positions in VLO. Bank of America Corp DE lifted its holdings in shares of Valero Energy by 11.4% during the first quarter. Bank of America Corp DE now owns 5,033,310 shares of the oil and gas company’s stock worth $1,243,630,000 after purchasing an additional 516,975 shares during the period. Bank of New York Mellon Corp boosted its position in Valero Energy by 9.4% in the first quarter. Bank of New York Mellon Corp now owns 2,969,320 shares of the oil and gas company’s stock valued at $733,660,000 after buying an additional 254,604 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in Valero Energy by 18.4% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,842,339 shares of the oil and gas company’s stock worth $702,285,000 after buying an additional 442,177 shares during the period. Amundi increased its holdings in Valero Energy by 45.3% in the 1st quarter. Amundi now owns 2,584,976 shares of the oil and gas company’s stock worth $638,695,000 after buying an additional 806,018 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Valero Energy by 33.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,058,341 shares of the oil and gas company’s stock worth $536,074,000 after buying an additional 520,642 shares during the last quarter. 78.69% of the stock is currently owned by institutional investors.

Valero Energy Company Profile

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.